Knowledge@wharton

In mid-October the Chicago Board of Trade agreed to be purchased by the Chicago Mercantile Exchange for about $8 billion topping a wave of exchange mergers in the U.S. and Europe. Two factors drove the deal: the enormous growth in the use of futures options and other derivatives to hedge risks and speculate and the need for economies of scale to compete with exchanges that have grown through mergers. Wharton professors analyze the deal. See acast.com/privacy for privacy and opt-out information.