Eurex and CBOT Consider Continuing Their Cooperation

Eurex, the European derivatives market, and the U.S. exchange CBOT (Chicago Board of Trade), are considering to renew their cooperation, which was interrupted at the end of January. Eurex confirmed reports that more concrete talks had taken place last week, following informal contacts in recent months. The exchange added that on Tuesday, the Board of Directors of CBOT came out in favor of continuing the cooperation and on this basis would call for a vote by its members before the end of June. According to Eurex a favourable vote by the members of CBOT would result in the continuation of the cooperation between CBOT and Eurex. Eurex CEO Jörg Franke commented: "We still think that a cooperation with CBOT would be advantageous for the exchanges and their membership. But this is something that the board of directors and the members of CBOT will have to decide." CBOT Chairman David Brennan said in Chicago: "The time is now right for a business alliance with Eurex and it has my complete support. I am confident that we have reformatted an alliance with Eurex that will result in increased efficiency, stronger technology and shared costs that will serve CBOT members well." CBOT President and CEO Thomas R. Donovan said in Chicago: „This Eurex alliance will allow us to meet and beat all competition, while continuing to grow our business and provide global trading opportunities to our members." The two exchanges had taken up their cooperation in the summer of 1998 with the aim of giving the members of both exchanges direct access to each other's products. The Eurex system was to serve as the trading platform for both exchanges. With a slim majority the CBOT members voted against continuing the cooperation at the end of January 1999.