New futures exchange planned.
NEW YORK: A dozen financial institutions, including Bank of America, JPMorgan, Merrill Lynch and Chicago hedge fund firm Citadel Investment Group have joined together to launch a new futures exchange, a company spokesman said.
The group also includes Credit Suisse, Barclay's Barclay Capital, Citigroup, Deutsche Bank, eSpeed, GETCO, PEAK6 and the Royal Bank of Scotland.
The exchange is being formed to create a competitive, low-cost alternative in the futures market. The spokesman declined to say if the group intends to compete directly with CME Group's Chicago Mercantile Exchange.
CME is the world's largest futures exchange, controlling more than 85 per cent of US futures and options-on-futures volume after its July takeover of CBOT Holdings.
A CME spokesman said the exchange "thrives on competition" and would continue to focus on "efficiencies to provide the lowest cost liquidity." Early next year, the new exchange plans to roll out US Treasury futures as its first product, the spokesman said.
The group's board will meet early next year to name the venture, and launch a management search.
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|Publication:||Gulf Daily News (Manama, Bahrain)|
|Date:||May 1, 2008|
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