CME Group Inc., the world's largest futures
market, dropped from a record close in
pre-Christmas stock trading after a dozen
brokerages said they would start a competing
exchange. The track record of would-be rivals
suggests the shares may soon rebound.
Bank of America Corp., Barclays Plc, Citadel
Investment Group LLC, Citigroup, Credit Suisse
Group, Deutsche Bank AG, eSpeed Inc., Getco Holding
Co., JPMorgan Chase & Co., Merrill Lynch, Peak6
Corp. and Royal Bank of Scotland Group Plc are all
investing in the electronic market, according to a
statement.
The exchange, as yet unnamed, plans to start next
year by taking on the Chicago-based company in U.S.
Treasury contracts. Even Eurex AG, Europe's biggest
derivatives exchange, failed to crack that market.
Eurex sold a 70 percent stake in its U.S. futures
unit after a two-year effort to compete with the
Chicago Board of Trade, now part of CME, in
Treasury futures. All-electronic markets started
previously by ESpeed and BrokerTec Global LLC, now
a unit of ICAP Plc, were also unsuccessful.