U.S. Congressman Vito Fossella (R-NY) was to join with Chicago-based exchange leaders to discuss initiatives to enhance the capital markets and U.S. economic competitiveness following the first meeting of the “Capital Markets, Economic and Information Security” task force during a press briefing June 4, and they did, but the press was not present for it.
Futures was invited to a press conference, which took place afterwards — after Fossella spoke with the leaders from the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the Minneapolis Grain Exchange and the Kansas City Board of Trade — when it seemed they were all too tired to talk about it anymore.
However, there was something to take away from the 17-minutes they did speak.
Fossella says the United States used to be the only game in town — the only Michael Jordan — but that’s no longer the case. “What we have to worry about now is the consequence of inaction,” he says, referring to loss of jobs that result from the delay or inaction of bringing new products to help investors minimize risk and exposure — “products that may be available for trading outside the United States that can be offered for trading in the United States, but are not yet because of unnecessary delays,” Fossella said. “We have to look at the regulatory framework and litigation reform,” he said, without getting more specific as to what kind of reform.
CBOT Chairman Charley Carey added that consolidation is necessary to continue to compete on a global base. “You need scale to have a global footprint. That’s why we are working to bring the CME and the CME together,” Carey says. “Companies need to combine to remain globally competitive and to continue to be a global player.”
According to today’s Financial Times, the CBOT board put shareholders on notice it was going to be doing a full court press once the Department of Justice review is released, possibly later this week, to get members to vote for the CME merger. Last week the Intercontinental Exchange (ICE) officials met with CBOT members to answer questions. ICE CEO Jeff Sprecher was met with some derision, but mainly was welcomed for ICE’s higher bid. There definitely is a non-sequitur between the CBOT board and many of its members who still are angered by the CME’s lower bid, and the CBOT’s board for wanting to take it. (by Yesenia Salcedo)
Tags: futures exchanges, task force, Vito Fossella
