Posts Tagged ‘futures exchange’

A low-key rumor mill

Tuesday, February 12th, 2008

While it may not be quite the blockbuster story that a certain French bank fracas, or a certain government department brouhaha are, the proposed new futures exchange has been surrounded by its own (albeit lower-key) circle of rumors and intrigue over the past few weeks. The Financial Times reported that the Intercontinental Exchange (ICE) held “early and informal” talks with the consortium of 12 financial institutions backing the exchange, and according to the Chicago Tribune, Archipelago founder Jerry Putnam is being considered as the new exchange’s CEO. Whether or not ICE will contribute its muscle to the new exchange remains to be seen, and the CEO search appears to be ongoing, as today group spokesperson Bill McBride could not comment on either report. The consortium is interviewing “a range of accomplished and experienced executives” for leadership positions, according to McBride, who says that although the group hopes to have the positions filled by the end of February, as far as hiring was concerned, “getting it done right is better than getting it done fast.”

CME strikes back

Thursday, January 10th, 2008

In late December, a consortium of 12 financial institutions announced plans to launch a new electronic futures exchange, and apparently CME Group is not taking this challenge lying down. Yesterday, CME announced product enhancements aimed at creating “a more liquid, efficient and competitive marketplace,” according to a statement. CME will begin allowing block trading, expected to begin Feb. 4 and subject to CFTC approval, for certain CBOT interest rate products. CME also plans to reduce the minimum tick size for the 30-year U.S. Treasury bond futures contract and both the 5-year U.S. Treasury note futures and options on futures. So what’s the first product expected to be launched by the new exchange? You guessed it: U.S. Treasury futures.

For more on the new futures exchange, check out the February issue of Futures magazine.