Press

The two leading derivatives exchanges in the world Eurex and CBOT signed on Friday the legal agreements creating an alliance and new joint venture company to operate their global electronic trading system. The deal creates a single trading platform serving the world’s two largest derivatives exchanges.

The two exchanges will share software development and deploy a single global network and member support organization. The joint venture company is being structured with its own management and operating structure following the principle of co-leadership in governance. It will have teams handling systems development, member readiness, exchange operations, marketing and business development.

David Brennan, Chairman of CBOT, said: “The legal agreements are 100 percent consistent with the proposal approved by the CBOT’s membership and Board. We look forward to implementing a world-class electronic trading system to complement our already world-class open outcry trading.”

Jörg Franke, CEO of Eurex, pointed out: “Our existing product strength in European and US fixed income futures represents the most successful futures derivatives markets in the world. The new common global platform will expand our existing business, creating new trading opportunities for our members. Our strengths also position us to broaden our product base in short order.”

Thomas Donovan, President and CEO of CBOT explained: “We are creating more than a traditional alliance between traditional exchanges. The deal creates a new operating company jointly owned by CBOT and Eurex. This global trading platform allows us to present a single face to our members and customers around the world.”