It doesn’t seem that long ago when a beaming Terry Duffy, Craig Donohue, Leo Melamed, Jack Sandner, Jim McNulty and Dick Grasso rang the opening bell at the New York Stock Exchange on the day the Chicago Mercantile Exchange went public. It was Dec. 6, 2002 and was one of the most significant and successful initial public offerings of this century.
The Merc launched that day with an offering price of $35. That price would grow to more than $700 five years later and although the CME has lost about half its value since the December 2007 high, if you asked CME leaders in 2002 if they would take 1,000% growth in five and a half years they would probably have taken it.
It was the first U.S. based exchange to go public and started a trend that is ongoing.
Last week the CME severed ties with NYSE Euronext a company that is becoming more of a competitor in this new world where exchanges are expanding beyond its core products, as CME Group decided to list itself exclusively with Nasdaq OMX Group. Along with the move to exclusive listing, Nasdaq extended the CME’s exclusive rights for listing contracts based on Nasdaq indexes to 2019.
Comments (1)
This post caught my attention because it mentions both the CME and the NYSE. I view that as Futures and Stocks combined. I am at a loss as to why Single Stock Futures have failed, to date.
I have found several articles about leverage that interest me - I debate whether futures or stock trading is the more ideal way to gain from short-term price moves in the stock market; specifically, in single stocks.
When the CME went public, I was hoping to see a resurrection in Single Stock Futures - the futures industry needs a more than a "hit" contract, such as the E-Mini S&P contract. It needs a much-needed shot in the arm to invigorate its presence and boost volumes.
I anxiously await the emergence of a liquid market place for trading futures on single stocks - so far, the Nasdaq (NQLX) and OneChicago have failed.
I hope the CME will beat the ICE exchange to the punch in the race for creating a viable single stock futures market - clearly the concept has huge potential.
I cannot understand why resources are wasted created weather contracts and others like it. Millions of investors would benefit from the hedging opportunities provided for in a viable single stock futures market.
What will it take to make this slam dunk concept succeed? ICE, CME ... who will win this one?
Posted by Jason | July 28, 2008 1:25 AM
Posted on July 28, 2008 01:25