The Chicago Mercantile Exchange and Chicago Board of Trade will merge, the companies announced Tuesday, creating the most extensive and diverse global derivatives exchange. Expect the merger, and the resulting company, to significantly change global derivatives markets.

The combined company will be called CME Group Inc., a CME/Chicago Board of Trade Company, and its headquarters will remain in Chicago. It is expected to create operational and cost efficiencies for customers and exchange members and deliver benefits to shareholders.

Average daily trading volume for the combined company should approach 9 million contracts - about $4.2 trillion in notional value.

"Growth in the global derivatives industry is accelerating and new competitors are emerging in exchange, over-the-counter and other unregulated markets," says Craig Donohue, CME Chief Executive Officer. "As a combined company, we will be better positioned to capitalize on these trends and compete more effectively as our industry continues to transform."

CBOT stockholders will be able to receive 0.3006 shares of CME Class A common stock for each share of CBOT Class A common stock or an amount in cash per share equal to the value of the exchange ratio based on an average of closing prices.

CBOT Chief Executive Officer Bernie Dan looks forward to combining his company's products and customers with CME's products portfolio and global relationships. "Our merger with CME lays a strong foundation for the continued growth of our combined company," says Dan.