The CME will now offer six FX monthly contracts to go along with its slate of quarterly offerings. They're scheduled to begin trading on Feb. 27.
The six currency pairs are AUD, GBP, CAD, EUR, JPY (all vs. the USD), and EUR/GBP.
CME's Paul Houston: "The launch of FX monthly futures is in response to feedback from global customers who want to trade FX futures for the capital efficiencies they bring but require increased granularity to meet their hedging needs."
Average daily volume at CME Group of 15.6M contracts last year was up 12% from 2015, with the election being a particular boon to business - Q4 ADV of 16.3M contracts was up 24% Y/Y; Dec. ADV of 15M contracts was up 15%.
Interest rate volume in Q4 of 8.3M contracts was up a whopping 36% from year-ago levels.
UBS analyst Alex Kramm says strong post-election volumes will be good for all exchanges, but CME Group and CBOE Holdings (NASDAQ:CBOE) are best-positioned thanks to their particularly large exposure to boosted trading activity.
They should also be the biggest beneficiaries of tax reform, he says.
He lifts Q4 EPS estimates for the whole complex, and sees 33% upside to CME's 2017 EPS if tax rates get cut.
New price targets: CME $136 from $112 (14% upside from last night's close); CBOE $73 from $62 (inline with last night's close); ICE $66 from $63 (7.5% upside); Nasdaq (NASDAQ:NDAQ) $82 from $78 (23% upside).
Yesterday's OPEC deal and jump in the price of crude led to CME Group's busiest-ever day in the energy complex with 4.51M futures and options contracts traded. The previous record of 3.9M contracts was set on Feb. 11.
WTI futures volume of 2.53M jumped past the previous record of 1.86M set the day after the election.
CME Group (NASDAQ:CME) CEO Phupinder Gill will retire at the end of the year, according to a statement issued by the world's largest futures market operator, with executive chairman Terry Duffy taking on his role after he leaves.
The surprise departure was announced just a year after Gill extended his employment contract to 2019.
The U.K.'s Competition and Market Authority (CMA) says Trayport's technology underpins about 85% of European utilities trading and ICE's ownership of it could lead to increased fees. "The only effective way to preserve competition is to require ICE to sell Trayport,” says the CMA.
"ICE is disappointed by the decision, having presented a compelling clearance case, and will now consider its options including the possibility of an appeal,” says a company spokesman.