The Tribune’s editorial on Chicago’s futures exchanges (“Futures’ future isn’t in Chicago,” April 23) was a shortsighted obituary for an industry, and one exchange in particular, which is very much alive and well-positioned for future growth. The Chicago Board of Trade is inarguably in a period of transition. I can assure you, however, that our exchange’s leaders do “have a clue” as to what to do now with the institution. Our strategy rests on two initiatives: first, the CBOT’s alliance with Eurex, and second, the exchange’s restructuring plan.
The CBOT’s alliance with Eurex, Europe’s leading electronic exchange, will set the standard for electronic derivatives trading globally. Our exchange restructuring plan as approved by our board of directors is the boldest in the industry. The plan proposes two for-profit companies–one open outcry company and one electronic trading company–so customers can choose the trading environment that is best for them. The CBOT, as well as other Chicago exchanges, face challenging adjustments. What 150-year-old organization is not forced to address modernization issues in today’s world?
Throughout the CBOT’s alliance negotiations and restructuring efforts, we have maintained our position of industry strength and leadership. The Chicago Board of Trade is approached regularly by exchanges and other entities seeking partnerships that would allow them to tap into our unmatched expertise, integrity and brand name.
We are not asking for cheerleaders–we have a tremendously capable team and will win on our own. Electronic growth within the trading industry commands that exchanges adapt their traditional ways of doing business. The Chicago Board of Trade is responding accordingly to this technological evolution in order to ensure that the futures industry stays here in Chicago.
