A definitive agreement has been signed under which CME group will acquire the Kansas City Board of Trade. CME Group is going to pay 126-million dollars for the leading futures market for hard red winter wheat. Additionally – KCBT will make a special distribution of excess cash to members concurrent with closing. CME Group plans to maintain a committee of KCBT market participants to advise on HRW wheat contract terms and conditions for at least three years. They are also going to maintain the historic KCBT trading floor for at least six months. CME Group Executive Chairman and President Terry Duff says the combination of KCBT Hard Red Winter Wheat products with the deep and liquid CBOT Soft Red Winter Wheat futures and options markets will provide new trading opportunities for market participants worldwide.
Source: NAFB News Service