On Wednesday CME Group Inc.?(CME:US) was hit with a lawsuit by its “old-line”?shareholders who have been at the exchange since 1970s. They have claimed in an Illinois court case that from operational changes to their trading rights, it has cut their membership’s value.?
The case was brought by Sheldon Langer and Ronald Yermack, CME members since the 1970s, and Lance Goldberg, a CBOT member since 2003. They have alleged that they, along with other “old-line Class B members,” no longer endure free access and close proximity to CME?s Globex Electronic Trading platform that they once had in past, according to the complaint, reported Bloomberg.
They have alleged, via the complaint,??This is a breach of contract action seeking hundreds of millions of dollars in damages.??
This has stemmed from a change with Globex rights in 2012 when CME opened an Aurora, Illinois-based electronic data center. The complainants, as well as other traders, had to now pay for its access. CME also began marketing the access rights of Globex, “bypassing the members? ability to lease those rights, according to their complaint.”
The traders have alleged that while it had not been obtained, the changes had required Class B member approval. Since the Aurora facility’s open, CME?s market capitalization an Class A shares have risen; however, the Class B share haven’t kept up, according to this group.?
For their case, they have sought unspecified monetary damages for both themselves and fellow traders as well as a court order enabling them (or their lessees), free access and improve proximity to the Aurora location.?
CME has not commented on the complaint.?