Wall Street plans CME-CBOT rival; Banks hope to counter Chicago merger with new clearinghouse.(News)

Crain's Chicago Business,  January, 2007  by Saphir, Ann

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Byline: ANN SAPHIR Wall Street banks, fearing the creation of a Chicago exchange juggernaut, are banding together to form a competitor. Since October, when the Chicago Mercantile Exchange announced its deal to acquire the Chicago Board of Trade, a group of 12 financial institutions-half based in New York-have been consolidating ownership of Chicago-based Clearing Corp., the former guarantor of trades at the Board of Trade.

The group's moves are aimed at creating a rival to the CME's clearing operation, which facilitates trading at the Chicago exchanges by guaranteeing payment ...

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