DOJ Blesses CBOT-CME Deal

The Department of Justice put its stamp of approval on the merger between the Chicago Mercantile Exchange(CME Quote) and CBOT Holdings(BOT Quote), clearing the exchanges from the last big hurdle that could have prohibited the deal.

"After an extensive investigation of both the Chicago Mercantile Exchange's proposed acquisition of CBOT and the 2003 agreement under which CME provides clearing services to CBOT, the antitrust division determined that the evidence does not indicate that either the transaction or the clearing agreement is likely to reduce competition substantially," the DoJ said in a statement on its Web site Monday.

The Justice Department said that while the CBOT and the CME account for most financial futures traded on U.S. exchanges, "their products are not close substitutes and seldom compete head to head, but rather provide market participants with the means to mitigate different risks." ...