"But competition could come much sooner from some of the CME’s own customers as a dozen brokerage firms are pushing a plan to launch an exchange, dubbed ELX, to rival the CME in U.S. Treasury futures trading.
Initially known as “Four Seasons,” ELX is backed by Bank of America, Barclays Bank, Citadel Investment Group, Citigroup, Credit Suisse, Deutsche Bank, eSpeed, GETCO, JPMorgan Chase & Co., Merrill Lynch & Co., PEAK6 Investments, and The Royal Bank of Scotland Group.
ELX, which stands for Electronic Liquidity Exchange, will run on eSpeed’s trading system and is entering agreements with technology firms to ensure broad customer access to its platform.
An executive for a firm in the Four Seasons group, who asked not to be named, said in an interview at the FIA that ELX is looking for more partners, in particular on the investment banking side, which may include large Treasury futures participants such as Goldman Sachs & Co. and UBS.
Some of the ELX firms, including Citadel, Credit Suisse and JPMorgan, as well as Lehman Brothers Holdings, Newedge and UBS, are involved in a similar futures exchange project in Europe, codenamed “Rainbow,” which is still in early stage development."
via P&I
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