FIA opposes CME-CBOT merger

The Washington-based Futures Industry Association (FIA) has opposed the proposed merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) on the grounds that it would reduce competition among US exchanges.

The association said there was already no "meaningful competition" among US futures and clearing facilities; the merger would exacerbate the situation and make it more difficult for new entrants to enter the market. FIA also warned that the merger would concentrate too much market power in the new group.

The CME and CBOT responded that the merger would help the exchange compete against national securities exchanges entering the futures market, as well as helping the US compete in the global derivatives market. The CME also emphasised expected cost efficiencies that could save shareholders $125 million and customers $70 million a year.