Wednesday, October 17, 2012

Kansas City Board of Trade has been purchased by the CME Group

Posted By on Wed, Oct 17, 2012 at 10:15 AM

The KC Board of Trade has been sold.
  • Wikipedia
  • The KC Board of Trade has been sold.
The Kansas City Board of Trade, where wheat has been bought and sold for 156 years, has been bought. The CME Group, Inc., and the KCBT announced this morning that the hard red winter wheat futures and options exchange, at 4800 Main, would be purchased for $126 million in cash. It's the third major acquisition for the CME Group in the past five years. The Chicago-based company was created in 2007 with the merger of the Chicago Board of Trade and the Chicago Mercantile Exchange. A year later, it acquired Nymex Holdings, the parent company of the New York Mercantile Exchange and Commodity Exchange, Inc. In 2010, the CME Group purchased the Dow Jones Indexes.

The Kansas City Board of Trade has been at the Main Street location for 56 years, but chairman Steven Campbell believed the complex regulatory requirements and operational demands meant that a partnership represented the best chance for future success. While this may allow the KCBT to compete in an increasingly technical marketplace, the brick-and-mortar future of the exchange is less certain. Under the terms of the signed agreement, the trading floor will remain open for at least six months and "a committee of market participants" is slated to advise CME for a minimum period of three years. The board of directors has approved the sale, which now must be signed off on by KCBT shareholders and regulators. The KCBT membership will receive a special distribution of excess cash if the deal closes as it's expected to later this year.

Tags: , , , , , ,

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

Readers also liked…

More by Jonathan Bender

Most Popular Stories

All contents ©2014 Kansas City Pitch LLC
All rights reserved. No part of this service may be reproduced in any form without the express written permission of Kansas City Pitch LLC,
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.

All contents © 2012 SouthComm, Inc. 210 12th Ave S. Ste. 100, Nashville, TN 37203. (615) 244-7989.
All rights reserved. No part of this service may be reproduced in any form without the express written permission of SouthComm, Inc.
except that an individual may download and/or forward articles via email to a reasonable number of recipients for personal, non-commercial purposes.
Website powered by Foundation