Seeking Alpha

CME Group Inc. (CME)

  • Fri, Jan. 9, 9:30 AM
    • "Despite the clear superiority of our offer, we have faced continued obstacles and delaying tactics, which we believe are the result of actions taken by [GFI Group leaders] Michael Gooch and Colin Heffron, who have a conflicting personal commitment to the joint CME/management bid for GFIG and are actively sabotaging the transaction with BGC," says BGCP President Shaun Lynn in a letter to the GFI Group board.
    • The GFI Group vote on the CME bid is set for Jan. 27, and the proposal needs two-thirds of the vote to win. With BGC controlling about 30% of the votes at this time, the CME bid could easily fail.
    • As the FT notes, this doesn't mean victory for BGC. Instead, it sets things up for any number of permutations, perhaps even CME and BGC partnering to break up the company.
    | Fri, Jan. 9, 9:30 AM | 1 Comment
  • Fri, Jan. 9, 6:41 AM
    • Following a record-breaking year of trading volumes, CME Group (NASDAQ:CME) is raising transaction and clearing fees in markets ranging from interest rates to energy and agricultural products, increasing costs for traders for the second time in 13 months.
    • The increases, which take effect on Feb. 1, appear to target traders who do not own memberships at CME's exchanges.
    | Fri, Jan. 9, 6:41 AM | Comment!
  • Wed, Jan. 7, 8:08 AM
    • BGCP's expiration date for the tender offer to buy any GFI Group (NYSE:GFIG) shares for $5.45 in cash is extended until Jan. 27 - the date of GFI's special shareholder meeting at which owners will vote on acceptance of CME Group's $5.25 cash and stock offer.
    • As of the close of business yesterday, BGC Partners was an owner of about 30.5% of GFI's shares.
    • Source: Press Release
    • Previously: CME/GFI Group receive regulatory approval for deal (Jan. 5)
    | Wed, Jan. 7, 8:08 AM | 1 Comment
  • Tue, Jan. 6, 7:53 AM
    • In a bid to be the gold benchmark in Asia, CME Group's gold kilo futures contract will begin trading in Hong Kong on Jan. 26.
    • Exchanges in Singapore and China also recently launched gold contracts in their bid to be the benchmark, but volume thus far are pretty lame. CME's U.S. Comex contract, of course, is the global benchmark.
    • CME has been working on the launch for about a year, and said a few months ago not to expect anything before the end of 2014.
    • Press Release
    | Tue, Jan. 6, 7:53 AM | Comment!
  • Mon, Jan. 5, 12:52 PM
    • The sale of GFI Group (GFIG -0.6%) to CME Group (CME +0.8%) for $5.25 per share in cash and stock still requires approval of GFI owners, of which BCG Partners (BGCP -1.5%) is a sizable one.
    • BGC has offered $5.45 per share in cash.
    • GFI's special shareholder meeting is set for January 27.
    • Source: Press Release
    • Previously: GFI bidding war heats up (Dec. 18, 2014)
    | Mon, Jan. 5, 12:52 PM | Comment!
  • Mon, Jan. 5, 7:46 AM
    • December 2014 average volume of 13.6M contracts per day was up 25% from a year ago, with interest rate futures volume of 6.6M contracts up 32%. Trading in CME's mighty Eurodollar contract of 2.9M contracts gained 44%.
    • Source: Press Release
    | Mon, Jan. 5, 7:46 AM | Comment!
  • Mon, Jan. 5, 3:57 AM
    • More than 100 senior employees at GFI Group (NYSE:GFIG) have asked the company to alter their contracts to allow them to leave if a hostile takeover bid by rival BGC Partners (NASDAQ:BGCP) is successful, FT reports.
    • Many are worried about working within BGC’s corporate culture, which promotes a partnership structure and could lead to bonus cuts.
    • BGC has been engaging in a bidding war with futures market operator CME Group (NASDAQ:CME) since September.
    • Previously: GFI bidding war heats up (Dec. 18 2014)
    | Mon, Jan. 5, 3:57 AM | 2 Comments
  • Dec. 22, 2014, 7:40 AM
    • French producers say current wheat futures provider Euronext has not fixed issues which came to light in this year's poor harvest quality, and they're encouraging CME Group to move forward with an alternative contract.
    • CME has indicated it could launch its new option as soon as September.
    • "Euronext and CME have each proposed solutions that make sense," says InVivo's head of trading. "I think there will be some announcements very soon."
    | Dec. 22, 2014, 7:40 AM | Comment!
  • Dec. 18, 2014, 8:02 AM
    • The contracts will be listed on CME Europe, with first trade date of January 19. They're the first suite of physically and financially settled European natural gas cleared futures contracts.
    • Source: Press Release
    | Dec. 18, 2014, 8:02 AM | Comment!
  • Dec. 18, 2014, 3:31 AM
    • BGC Partners (NASDAQ:BGCP) has increased its takeover offer for rival interdealer broker GFI Group (NYSE:GFIG) by 3.8%, raising its bid to $5.45 per share.
    • BGC’s chairman and chief executive officer, Howard Lutnick, is looking to consolidate the shrinking interdealer brokerage business by topping CME Group’s (NASDAQ:CME) takeover bid for GFI.
    • CME matched BGC’s previous $5.25 per share offer on Dec. 2.
    • Previously: BGC Partners extends GFI tender for another month (Dec. 09 2014)
    • Previously: CME boosts offer for GFI Group (Dec. 03 2014)
    | Dec. 18, 2014, 3:31 AM | 5 Comments
  • Dec. 11, 2014, 11:32 AM
    • The $2 per share annual variable dividend is slightly above the high end of expectations for Sandler O'Neill's Richard Repetto, who ups his price target on Buy-rated CME Group (CME) by $4 to $98.
    • The special payout will reduce cash and equivalents at CME to just $673M, below the company's minimum target of $700M, says Repetto, who notes this is the first time CME has felt comfortable even approaching that floor.
    • Turning to operations, Repetto says current open interest supports a positive volume outlook for next year, especially with more interest rate volatility likely to be on the way.
    • Previously: CME declares $2.00 dividend (Dec. 11, 2014)
    | Dec. 11, 2014, 11:32 AM | Comment!
  • Dec. 11, 2014, 6:23 AM
    • CME (NASDAQ:CME) declares annual variable dividend of $2.00/share.
    • Payable Jan 13; for shareholders of record Dec. 29; ex-div Dec. 24.
    | Dec. 11, 2014, 6:23 AM | Comment!
  • Dec. 9, 2014, 2:31 PM
    | Dec. 9, 2014, 2:31 PM | 1 Comment
  • Dec. 9, 2014, 11:07 AM
    | Dec. 9, 2014, 11:07 AM | Comment!
  • Dec. 8, 2014, 7:58 AM
    • KBW rolls out of CME Group (NASDAQ:CME) and into Nasdaq OMX (NASDAQ:NDAQ), downgrading the former to Market Perform while upgrading the latter to Outperform.
    • NDAQ is higher by 17.5% Y/Y, while CME group is ahead 11%.
    | Dec. 8, 2014, 7:58 AM | Comment!
  • Dec. 4, 2014, 12:57 PM
    • ICE today announces an agreement with Eris Exchange to list futures and options based on the Eris Methodology, a product design for building swap futures in a capital-efficient manner.
    • The first product launch (set for 2015 H1) under the agreement will be CDS futures based on the Markit CDX North American Investment Grade and High Yield indices.
    • Source: Press Release
    • The move pits ICE against CME Group and Deutsche Boerse (OTCPK:DBOEY) for market share as new rules on derivatives and bank capital reshape the swaps market.
    | Dec. 4, 2014, 12:57 PM | 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.