Seeking Alpha

CME Group Inc. (CME)

  • Wed, Apr. 29, 5:30 PM
  • Mon, Apr. 27, 10:45 AM
    • Volumes at CME Group (CME -0.2%) are tracking down 13% year-over-year and down 32% from a busy Q1, says Credit Suisse, cutting the price target on the Neutral-rated stock to $88 from $95. "We believe a pushback in market expectations for the timing of the first Fed Funds hike has dampened volatility and driven volumes lower."
    • On the positive side, energy activity remains busy, but energy isn't nearly the driver of business at CME interest rates are.
    • The team cuts its EPS estimates for 2015, 2016, and 2017, respectively to $3.65, $4.00, and $4.20 from $3.69, $4.10, and $4.25.
    • Source: Benzinga
    | Mon, Apr. 27, 10:45 AM | Comment!
  • Wed, Apr. 22, 4:49 PM
    • Responding to the arrest of a U.K.-based punter whom authorities accuse of causing 2010's "flash crash" with "layering" and "spoofing" algorithms, CME Group reiterates its long-held belief that activity in its markets were not behind the panic decline.
    • "If new information has come to light, we look forward to reviewing it with the Commission.  We fully support the CFTC's actions to prosecute those who attempt to engage in fraud or manipulation."
    • Source: Press Release
    | Wed, Apr. 22, 4:49 PM | 1 Comment
  • Thu, Apr. 2, 7:44 AM
    • CME Group March volume of 13.7M contracts per day slipped 3% from a year ago.
    • Interest rate volume of 6.5M contracts fell 8%, with eurodollar volume of 2.6M contracts off 6% and Treasury volume of 2.4M contracts off13%.
    • Q1 volume averaging 15M contracts per day gained 10% from a year ago, and was the 2nd-highest quarterly volume on record.
    • Source: Press Release
    | Thu, Apr. 2, 7:44 AM | Comment!
  • Tue, Mar. 24, 2:45 PM
    • Hoping to challenge Euronext's dominance in EU wheat futures by launching its own contract by the end of April, CME Group (CME -0.8%) can't yet confirm whether it's moving forward.
    • At issue is CME's inability to guarantee enough deliverable capacity after failing to ink deals with local suppliers.
    • "If for whatever reasons the parties that we are speaking to decide not to move forward ... we would not be making the contract available," says CME's Eric Hasham, speaking at a cereals conference in Geneva.
    • The contract would be listed in Chicago, but priced based on delivery to the port of Rouen in France. "The biggest problem is asking people to sign (up to) a different legal system," says Hasham, who says no one has yet signed with CME to be a delivery point yet.
    • "It does not look good. Until last month they said they would launch it in April and now they don't even have a single silo," says one operator.
    • Source: Reuters
    | Tue, Mar. 24, 2:45 PM | Comment!
  • Mon, Mar. 23, 8:19 AM
    • On that date, both CME Group (NASDAQ:CME) and Intercontinental Exchange (NYSE:ICE) will launch new euro-denominated cocoa contracts, with the winner responsible for a key benchmark affecting the price of the chocolate bar, not to mention incomes for millions of cocoa farmers.
    • Cocoa is already traded in New York and London with contracts controlled by ICE, but CME's first entry into the softs could pave the way to challenge other ICE-dominated markets like sugar and coffee.
    • The winner in the cocoa war, says one trader, will ultimately be the large chocolate end users like Nestle, Mondelez, and Mars.
    • Source: FT
    | Mon, Mar. 23, 8:19 AM | Comment!
  • Tue, Mar. 17, 3:24 PM
    • CME Group (CME -0.3%) has held talks with BGC Partners (BGCP -0.6%) about buying GFI Group's trading-software units - Trayport and Fenics - after BGC won out over CME and GFI management in a bid for the company.
    • Talks are in the early stages, and the assets could be valued at more than $600M, say sources.
    • Trayport operates a system popular with commodities traders in Europe, while Fenics is for currency options.
    | Tue, Mar. 17, 3:24 PM | 4 Comments
  • Tue, Mar. 10, 3:26 PM
    • CME Group (CME -0.9%) signs a LOI with the Taiwan Futures Exchange regarding the potential listing on TAIFEX of U.S. equity index futures, and the exploration of more collaboration opportunities.
    • CME President Terry Duffy notes strong growth in Asia, with volumes in Q4 up 51% from a year earlier.
    • Previously: CME Group looks to boost Asian business with new appointment (March 9)
    | Tue, Mar. 10, 3:26 PM | Comment!
  • Mon, Mar. 9, 8:08 AM
    • Christopher Fix has been named as Managing Director and Head of Asia Pacific at CME Group. He'll be based in Singapore and in charge of leading the company's efforts to develop benchmark products and services for that region.
    • He was previously CEO at the Dubai Mercantile Exchange (a JV in which CME is a part of), and is now chairman of that group.
    • Head of International at CME William Knottenbelt notes the company generates 30% of its revenue from outside the U.S..
    • Source: Press Release
    | Mon, Mar. 9, 8:08 AM | Comment!
  • Wed, Mar. 4, 3:48 PM
    • The 10-year paper carries a coupon of 3%, and CME Group will use the net proceeds to pay off $612.5M of 4.4% notes due in three years.
    • Source: Press release
    | Wed, Mar. 4, 3:48 PM | Comment!
  • Tue, Mar. 3, 7:43 AM
    • February volume of 15.8M contacts per day was up 13% from a year ago, and was the strongest February ever.
    • Interest rate group volume of 8.7M contracts per day gained 27% Y/Y, with Eurodollar volume of 2.8M up 38%.
    • Source: Press Release
    • CME flat premarket
    | Tue, Mar. 3, 7:43 AM | Comment!
  • Wed, Feb. 18, 10:48 AM
    • Impressed with CME Group's (CME -0.1%) presentation at its financial services conference last week, Credit Suisse boosts its Q1 EPS estimate to $0.96 from $0.93, and full-year 2015 to $3.71 from $3.70. 2016 and 2017 estimates are unchanged at $4.10/$4.25.
    • Presentation webcast
    • The $95 price target (from $90) implies a 23 multiple on CS's 2016 estimate. With the stock at $94.14, however, CME garners just a Neutral rating from the team. "While we appreciate CME's diverse product set, best-in-class distribution/clearing platforms and strong free cash flow generation prospects, we see more balanced risk/reward at current valuations."
    | Wed, Feb. 18, 10:48 AM | Comment!
  • Fri, Feb. 6, 12:07 PM
    • Most analyst commentary is on the cautious side after CME Group (CME +3.8%) beat on both the top and bottom lines.
    • Reiterating his Neutral rating and $90 price target, Credit Suisse's Christian Bolu says operations are strong and expense discipline is there, but all that good stuff has been priced into the stock - now trading at 22x 2016 estimates.
    • Raymond James' Patrick O'Shaughnessy voices similar thoughts.
    • Also reiterating a Hold is S&P Capital IQ's Kenneth Leon, though he hoists his price target by $10 to $95.
    • One bull is Citi's William Katz, who reiterates his Buy rating and $100 price target: 1) Differentiation vs. peers remains robust; 2) CME is the most levered among the exchanges to a pick-up in volatility; 3) Lead indicators are strong; 4) Management is confident on holding the line on expenses; 5) Capital returns - the cash build is better-than-hoped, boding well for a special dividend.
    • Previously: Busy trading action has CME in high cotton (Feb. 5)
    • Previously: CME beats by $0.02, beats on revenue (Feb. 5)
    | Fri, Feb. 6, 12:07 PM | Comment!
  • Thu, Feb. 5, 4:22 PM
    • Q4 average daily volume of 14.8M contracts up 31% Y/Y, and the highest figure since 2008 Q1. Clearing and transaction fee revenues of $713M up 24%. Average rate per contract of $0.731 vs. $0.725 in Q3 thanks to a higher proportion of volume coming from commodities products.
    • Q4 earnings of $306.5M or $0.91 per share vs. $193.1M and $0.58 one year ago. Excluding some items, this year's EPS was $0.95.
    • Conference call at 4:30 ET
    • Previously: CME beats by $0.02, beats on revenue (Feb. 5)
    • CME +0.2% after hours
    | Thu, Feb. 5, 4:22 PM | Comment!
  • Thu, Feb. 5, 4:14 PM
    • CME (NASDAQ:CME): Q4 EPS of $0.95 beats by $0.02.
    • Revenue of $841.1M (+22.4% Y/Y) beats by $11.15M.
    • Press Release
    | Thu, Feb. 5, 4:14 PM | Comment!
  • Wed, Feb. 4, 6:34 PM
    • With pit volumes declining to just 1 percent of daily futures, CME Group (NASDAQ:CME) plans to close most of its open outcry futures trading pits in Chicago and New York. What'll we do, Mortimer?
    • The move will take place by July 2 and spare the floor-based S&P 500 futures market, as well as most options markets (which CME says continue to trade actively on floor and screen).
    • In Chicago, all pits will be located on a single floor in the Financial Room by September.
    • When the London Metal Exchange moves next year, it's taking along its red leather benches that form the last open outcry pit of its kind in Europe.
    | Wed, Feb. 4, 6:34 PM | 1 Comment
Company Description
CME Group Inc, through its futures exchanges & clearing houses, serves the risk management & investment needs of customers. It offers products like futures & options, foreign exchange, energy, agricultural commodities, weather derivatives & real estate.