Regulators approve futures merger

Federal antitrust regulators gave the green light for the two largest U.S. futures exchanges to merge, saying the proposed combination probably would not hurt competition.

Chicago Mercantile Exchange Holdings Inc.’s deal to acquire CBOT Holdings Inc. next goes to votes by Chicago Mercantile shareholders and Chicago Board of Trade members and shareholders July 9.

The Futures Industry Assn., which represents futures brokers, has said the deal would lessen competition and raise barriers to entry for new competitors.

But in approving the transaction, the U.S. Justice Department said that the exchanges “seldom compete head-to-head” and that a combined exchange would not result in a loss of innovation.

Investors in CBOT, the No. 2 U.S. futures exchange, still have to consider an unsolicited bid by Atlanta-based IntercontinentalExchange Inc. in March. That bid is valued about $900 million above Chicago Mercantile’s bid.

Chicago Mercantile shares Monday rose $7.44, or 1.4%, to $557.07. CBOT climbed $3.04, or 1.5%, to $201.54. IntercontinentalExchange jumped $3.56, or 2.4%, to $149.19.