Poor CME Group. On the day it announces one of its proudest achievements, that it entered into an agreement with the New York Mercantile Exchange to combine interests, basically buy the oil exchange, what happens? The markets goes into free fall due to the near failure of one of the street’s largest investment banks Bear Stearns, one of its largest clearing members, MF Global, loses 62% of its stock value in a day and the CME’s own stock share ended the day down by almost 8%; at its worst point was down 15%. CMEGroup Executive Chairman Terry Duffy, an Irishman who should have savoured this St. Patrick’s Day, no doubt felt as pounded on as his exchange’s stock.
The good news is at least as of today, most precincts have reported in for MF Global: the CME, Intercontinental Exchange and London.Clearnet all sent releases that MF Global was in good standing. Even the industry’s regulator, the Commodity Futures Trading Commission, sent a notice stating the same. Perhaps traders should take this St. Patty’s day to reflect on what Scarlett Ohara said, “Tomorrow’s another day.”
