Globex, established in 1992, has suffered from the outset from infighting between the CBoT and its cross-town rival, the Chicago Mercantile Exchange, and yesterday's withdrawal did not come as a surprise. But the board's decision to set up a direct competitor to Globex was unexpected, and raises new questions about the survival of the system, which has cost Reuters dollars 90m.
Reuters and the two Chicago markets had been discussing a revised governance structure for Globex, which would have given greater say to the exchanges. These include the Paris Matif, whose products now dominate Globex trading, and prospective members such as the London International Financial Futures Exchange.
Reuters insisted on a commitment by the exchanges not to operate local systems that would compete with the international network. The CBoT, however, has developed a local-area communication network in Chicago to allow trading in exotic products.
Reuters will decide next Friday whether or not to extend the partnership.Reuse content