Sale of KC Board of Trade completed

CME Group Inc. today completed its purchase of the Kansas City Board of Trade.

The $126 million cash deal, announced in mid-October, combines the two commodities markets. Mark Davis, reported for The Kansas City Star:

Common ownership will allow traders in both cities’ markets to trade each others wheat futures and wheat options contracts in a more cost-effective manner, the announcement said. Once the operations have merged, customers of the markets will benefit from different margins and other changes.

Next week, traders also will have access to a market in the implied spread between Chicago and Kansas City wheat contracts.

The CME Group, which owns the Chicago Mercantile Exchange, the Chicago Board of Trade and other markets, has said it will keep the Kansas City exchange’s floor open for at least six months.

Executives previously said there have been no plans regarding the Kansas City trading pits beyond the six month commitment.