Chicago's derivatives exchanges: a bleak future?
Despite high volumes, the 2 major futures exchanges in Chicago—the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME)—are troubled due to their increasing bureaucracies and escalating costs. Most futures markets are making scant profits, and Chicago's share has been dwindling f...
| Publicado en: | Economist Vol. 328; pp. 75 - 76 |
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| Formato: | Artículo |
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Economist Newspaper Limited
August 28 1993
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=508487292&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 508487292 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00130613 ECO jtl: Economist issn: 00130613 maglogo: N pubinfo: dt: August 28 1993 vid: 328 pid: 161 pub: Economist Newspaper Limited artinfo: ui: 508487292 ppf: 75 ppct: 1 formats: tig: atl: Chicago's derivatives exchanges: a bleak future? aug: su: Chicago Board of Trade Chicago Mercantile Exchange Derivative securities Futures Investments -- Data processing sug: subj: Chicago Board of Trade Chicago Mercantile Exchange Derivative securities Futures Investments -- Data processing keyword: Chicago Board of Trade -- Market share Chicago Mercantile Exchange -- Market share Futures contracts ab: Despite high volumes, the 2 major futures exchanges in Chicago—the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME)—are troubled due to their increasing bureaucracies and escalating costs. Most futures markets are making scant profits, and Chicago's share has been dwindling for years. Since futures were developed in the 1970s, the profitability of brokering has been declining as customers became bigger than the clearing firms and were able to dictate terms. In addition, regulation has become harsher, stiffer capital requirements are driving trading overseas, and the CBOT and CME have been losing business to less regulated over-the-counter derivatives. Globex, a new electronic trading system developed by Reuters and the Chicago exchanges, was supposed to help preserve Chicago's preeminence in derivatives. The results since implementing Globex in mid 1992, however, have been so poor that Reuters may not renew the contract next April. pubtype: Periodical doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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