Last Friday after markets closed, CME Group got what could have been an obstacle to its definitive agreement to acquire Nymex Holdings, announced on Monday, off the table by selling the CBOT metals complex to NYSE Euronext. The deal looks shiny and bright for both exchanges. NYSE Euronext gets an entry point in the U.S. futures business, while CME unloads its metals complex to make way for the acquisition of the Nymex.
Pending regulatory approvals, full and e-mini gold and silver futures and options will begin trading later this year on NYSE Euronext trading system LiffeConnect. “This is our initial entry in the U.S. futures business, and is consistent with the goals set forth in NYSE Euronext merger,” says an NYSE Euronext spokesperson, adding that the benefits of the deal include “more growth opportunities and the continuing use of Liffe Connect technology.”
CME Group Executive Chariman Terry Duffy told Futures on Tuesday, “We don’t believe we have any overlapping business [with Nymex],” adding, “last Thursday I could not say that for sure.”
Nymex metals volume on Comex largely outpaced CME metals volume at the beginning of 2008. In January, CME gold volume was 636,717, while silver volume on CME was 96,600. Comex gold and silver volumes for that same month were 4,041,691, and 719,308, respectively. Prior to Comex listing its metal complex electronically side-by side on Globex at the end of 2006, CBOT gold had garnered more than 50% of daily volume.
When CME discussed its definitive agreement to acquire Nymex in a conference call yesterday, Senator Charles Schumer (D-NY) suggested that the metals complex sale would pave the way for Department of Justice approval of the CME/Nymex deal by taking a potential antitrust issue off of the table.
