With the approval of the Nymex-CME merger, the Chicago Mercantile Exchange has now realized its dream of becoming the most sprawling derivatives market...ever!
This transaction not only gives it control of the dominant venue for global oil- and metals-futures trading, but also adds emissions trading, freight derivatives and even a laggard Middle East exchange. Oh, and did we mention that this deal puts it in charge of clearing roughly 98% of U.S. exchange-listed futures? Yeah, that too. Plus, by the look of it, this is only the first stage in its plan for eventual world takeover.
CME Group Inc. secured victory in its 12-month pursuit of Nymex Holdings Inc. when members of the New York Mercantile Exchange voted overwhelmingly in favor of the proposed deal.
The takeover gives the CME control over the dominant venue for global oil- and metals-futures trading at a time when some of its core product lines are suffering slowing growth. CME also will gain entry in emissions trading, freight derivatives and the Middle East exchange market.
Nymex won backing from "around 650" of the 816 members, more than the 75% necessary, Nymex Chairman Richard Schaeffer said on a call with reporters.
Shareholders in both companies also approved a combination that will extend its lead as the world's largest futures platform by revenue, adding a suite of energy and metals contracts and other potential sources of growth.
The future of the exchange combination had hung in the balance after dissident Nymex members threatened to block the transaction amid discontent over its terms.
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