Legislation Details

Record #: R2018-422   
Type: Resolution Status: Adopted
Intro date: 4/18/2018 Current Controlling Legislative Body:
Final action: 4/18/2018
Title: Congratulations extended to Chicago Mercantile Exchange and London-based NEX Group on merger
Sponsors: Burke, Edward M.
Attachments: 1. R2018-422.pdf

RESOLUTION

 

 

WHEREAS, Chicago-based CME Group has agreed to purchase London-based NEX Group for $5.5 billion; and

 

WHEREAS, The Chicago City Council has been informed of this transatlantic agreement by Alderman Edward M. Burke; and

 

WHEREAS, NEX Group is headed by Michael Spencer and it dominates the electronic Treasury trading industry; and

 

WHEREAS, NEX Group's fixed income division is home to approximately 80 percent of trading volumes in a $14.5 billion market; and

 

WHEREAS, Terry Duffy, the Chief Executive Officer of CME, built the company through takeovers, including deals with the Chicago Board of Trade and the New York Mercantile Exchange; and

 

WHEREAS, CME holds a near monopoly over the trading of Treasury futures; and

 

WHEREAS, The acquisition of NEX Group seeks to bring together "two trading-industry trailblazers" to create a leading, client-centric, global markets company that will deliver better ways to trade and manage risk across futures, cash and OTC products; and

 

WHEREAS, Once the deal is completed Michael Spencer will join CME's Board of Directors and serve as an ambassador for the company in its dealings with high-profile clients, regulators and officials in Europe and Asia; now, therefore

 

BE IT RESOLVED, That we, the Mayor and the members of the Chicago City Council, assembled this eighteenth day of April, 2018, do hereby congratulate CME Group and NEX Group on this merger and do hereby wish this combined and enlarged company much future success; and

 

 

BE IT FURTHER RESOLVED, That a suitable copy of this resolution be presented to Terry Duffy and Michael Spencer.

Alderman - 14th Ward