Exchanging places

Exchanges

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When the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) unveiled an $8 billion merger in October, it wasn't just rival exchanges that were nervous. The prospect of the world's biggest futures exchange - valued at around $25 billion - also did not go unnoticed in the over-the-counter derivatives market. Exchanges are slowly entering the OTC space - and, in the process, are encroaching on an area that has traditionally been the preserve of interdealer brokers.

"Industry