The fallout (decline in trading volume) from the MF Global fiasco must be greater than ever we imagined. Less than 2 weeks ago the CME announced the launch of a clearing service for OTC London gold derivatives. Reports surfaced from Bloomberg today that the CME Group is now attempting to acquire the world's largest metals futures market, the LME.
CME Group Inc. (CME) has made a bid for the London Metal Exchange as the world’s largest metals futures market plans a meeting next week to consider offers, according to a person with knowledge of the situation.
The price CME Group offered wasn’t disclosed, said the person, who declined to be identified because negotiations are private. A purchase of the LME by Chicago-based CME Group would add to its metals that trade through the Comex, where futures based on gold, silver and copper are traded.
LME’s board will review the bids in a Feb. 23 meeting. LME Chief Executive Officer Martin Abbott had set Feb. 15 as a deadline for takeover bids that will be reviewed by a special committee. NYSE Euronext (NYX) submitted an expression of interest in the LME, another person familiar with the matter said.