Wednesday, May 7, 2008

The leadership speaks...

One-third of all the CME shareholders are present in person or by proxy. They will be voting on equity directors and members to the board plus ratification of Ernst & Young as accountant for the fiscal year.

Integration has been nearly accomplished within 10 months since the merger was closed. CME estimates it will save $150 million with the merger. Chairman Terrence Duffy announced a 41 percent increase in electronic trading representing 78 percent of total trading. As for the NYMEX acquisition, customers can access fuel and metals on Globex. The merger expands CME group into New York and save $60 million a year.

CEO Craig Donohue addressed the declining stock price. There are two new competitors to the industry. The Justice Department had concerns with policies. There are additional concerns that CME is losing out to the burgeoning over-the-counter market, derivatives not traded at an exchange.

"We are very focused on our over-the-counter market," Donohue said.

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