Nybot and eSpeed terminate trading deal
01 December 2004 | 4434 views | 0
The New York Board of Trade has confirmed termination of an agreement with eSpeed for the development of an electronic trading system, leaving the open outcry market free to pursue alliances with other exchanges.
All previous agreements among the various Nybot companies and Cantor Fitzgerald/eSpeed have been resolved, Nybot spokesman Guy Taylor, told Reuters.
"All previous agreements among these parties relating to electronic trading have been terminated," he said. "Nybot is free to enter into contracts, combinations, alliances and ventures of any kind other than arrangements involving electronic trading of Treasury futures."
The announcement is likely to lead to pressure for a possible link-up with the New York Mercantile Exchange - with which Nybot shares a building - and development of cross-margining arrangements with overseas markets and their clearing houses.
Update In a statement issued Thursday 2 December, Nybot said it had entered a new 13-year agreement with Cantor Fitzgerald, which certified eSpeed as the sole owner of the Cantor Financial Futures Exchange and the Commodity Futures Clearing Corporation of New York.
"Additionally, Nybot and eSpeed have agreed that Nybot will provide processing services for futures contracts or options on futures contracts listed on the Cantor Financial Futures Exchange or other exchange designated by eSpeed," the statement continued. "Nybot made a payment to eSpeed in connection with the transaction and is obligated to make certain subsequent anniversary payments."
No further financial details were forthcoming.