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Dec. 3, 2015, 8:16 PM
- CME Group (CME -2.8%) won a legal victory as a judge dismissed a lawsuit charging the futures exchange operator with favoring high-frequency traders.
- In dismissing the action, Judge John Robert Blakey said that three CME customers failed to allege they suffered actual losses on specific transactions from CME policies, or that artificial prices existed at CME Group: "This Court's task is not to adjudicate the fairness or appropriateness of high-frequency trading."
- The three had said that CME Group, the world's biggest futures exchange operator, had enabled a manipulated marketplace by selling high-frequency traders access to market data ahead of others.
Oct. 7, 2015, 9:46 AM
Feb. 6, 2015, 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)
Jan. 30, 2015, 3:37 PM
- The joint CME Group/GFI Group (NYSE:GFIG) management bid of $5.85 per share in cash and stock has lost a in a shareholder vote, reports Bloomberg, paving the way for BGC Partners' (BGCP -2.6%) $6.10 all-cash offer.
- GFI management had warned shareholders there was nothing stopping BGC Partners from pulling its offer, and - for now - the stock price is behaving as if this could be so. GFIG is lower by 1.1% to $5.62 per share.
- Previously: GFI Group's Gooch makes another plea (Jan. 29)
Jan. 27, 2015, 1:23 PM
- Writing in his capacity as the controlling stockholder of Jersey Partners, a 36%+ owner of GFI Group (GFIG -2.6%), GFI Group founder and Executive Chairman Michael Gooch tells fellow owners they can opt for a "bird in the hand" - the CME/GFI offer - or hold out for "BGC in the bush."
- Full letter is here
- He notes the GFI management group will only be paid $4.44 for each of their shares sold through Jersey Partners (the CME/GFI offer is for $5.85 in stock and cash).
- BGC Partners' (BGCP -0.7%) $6.10 per share cash offer "remains highly conditional," says Gooch, and - even if BGC reaches the 45% tender threshold - there's no guarantee GFI owners will get $6.10 for their shares.
Jan. 21, 2015, 10:50 AM
- Proxy advisory firm Institutional Shareholder Services recommends GFI Group (GFIG +1.8%) shareholders vote against the "economically inferior" offer by CME Group and GFI management of $5.85 in cash and stock. BGC Partners (BGCP +1%) has an offer on the table for $6.10 in cash.
- More from ISS: "It is not at all clear that unaffiliated shareholders incur any greater downside risk in holding out for the economically superior offer from this ongoing bidding war." If owners vote against the CME deal and nothing improves, says ISS, they can always tender their shares to BGC for $6.10.
- The special meeting is set for Jan. 27.
- Previously: BGC Partners boosts GFI Group bid once more (Jan. 20)
Jan. 20, 2015, 12:14 PM
- BGC Partners (BGCP -2.4%) lifts its price for GFI Group (GFIG +5.7%) to $6.10 per share in cash, and extends the expiration date to February 3.
- The price is about 4% higher than the latest cash and stock deal offered by CME Group and GFI management.
- Should GFI accept the deal by midnight tonight, BGC will add another $0.10 per share to its offer.
- GFI is currently trading at $5.91.
Jan. 20, 2015, 8:45 AM
- Responding to BGC Partners' (NASDAQ:BGCP) increase last Thursday, CME Group matches at least on price - $5.85 per share. BGC's bid remains all-cash, while CME's remains a mix of stock and cash.
- Alongside, the GFI management group agrees to forego roughly $40M which would have been payable to it as part of the deal.
- GFIG +3.6% premarket to $5.80.
- Previously: Game on. BGC Partners boosts offer for GFI Group (Jan. 15)
Jan. 15, 2015, 2:35 PM
- BGC Partners' (BGCP -1.9%) new all-cash offer of $5.85 per share is contingent on GFI Group's (GFIG +2.8%) acceptance.
- In addition, BGC makes a non-contingent increase in its all-cash tender offer to $5.75 per share and extends the date of the tender to the close of business on January 29. GFI owners are meeting on Jan. 27 to vote on CME Group's bid, which earlier today - with an assist from GFI Group management - was boosted to $5.60 in cash and stock.
- As of the close yesterday, about 14M shares had been tendered pursuant to BGC Partners' offer. Combined with 17.1M shares of GFIG already owned by BGC, it represents abut 24.4% of GFIG's outstanding shares.
- Previously: CME and GFI management team up to boost buyout price (Jan. 15)
Jan. 15, 2015, 8:54 AM
- Facing an ever-increasing challenge from BGC Partners (NASDAQ:BGCP) to win GFI Group (NYSE:GFIG), CME Group (NASDAQ:CME) and GFI management get together to boost their price to $5.60 per share in stock and cash.
- BGC's latest offer is $5.60 per share in cash.
- GFIG +2.4% premarket to $5.58.
- Previously: BGC Partners ups price for GFI Group (Jan. 13)
Dec. 3, 2014, 10:41 AM
- With both offers for GFI Group (GFIG +5%) now at $5.25, BGC Partners (BGCP -1.7%) CEO Howard Lutnick notes his company's proposal is all cash vs. CME Group's (CME) cash and stock mix.
- "We are currently evaluating our options with regards to the transaction," concludes Lutnick. BGC's tender offer is set to expire at the close of business on December 9.
- Previously: CME boosts offer for GFI Group
Oct. 14, 2014, 9:39 AM
- "Our industry has transformed significantly over the past five years, with the advent of OTC Clearing and other changes," says Executive Chairman and President Terry Duffy. "These staffing changes and other expense control measures we have taken internally will result in decreased costs and reduced management layers, and will help ensure the company's long-term continued growth."
- The move to shave 150 jobs follows September's reorganization of CME Group's (CME +1.8%) management structure.
Oct. 2, 2014, 10:24 AM
- "We are constructive on Nasdaq OMX's (NDAQ +0.3%) progress over many years in creating a lower-risk, high-recurring revenue business model with solid execution, especially in cost management," says analyst Brian Bedell, upgrading to a Buy with price target lifted to $49 from $46. "We see the story as increasingly gaining traction among investors and improving NDAQ's P/E from subdued levels."
- Also boosted to a Buy is IntercontinentalExchange (ICE +1.5%), with price target lifted to $219 from $202.
- CME Group (CME +1.5%), however, is Bedell's top pick in the exchange sector, and he lifts the price target to $95.
- Previously: Brisk September business at CME
Jul. 30, 2014, 9:46 AM
- In a 2-step transaction, CME Group with first acquire all of GFI Group (GFIG +41.2%) for stock worth $4.55 per share. Immediately following the purchase, CME will sell back to a group led by GFI management, GFI Group's wholesale brokerage and clearings businesses, after which they'll continue as private companies.
- CME will be left with GFI Group's Trayport - a provider of trading software in the European energy markets - and FENICS - which provides for price discovery, analytics, risk-management, and workflow connectivity services for OTC FX options markets.
- The deals are expected to close early next year
Jun. 3, 2014, 11:39 AM
- Overall exchange average volume of 13M contracts in May grows 6% from April, and falls 12% from May 2013.
- Average interest rate volume of 7.6M contracts per day is up 27% from April, but fell 3% from a year ago (when rates began blowing up). Eurodollar average futures volume of 2.6M contracts is up 10% from a year ago. Treasury futures average volume of 3.6M contracts slides 13% Y/Y.
- Average equity index volume of 2.2M contracts falls 22% from a year ago, and ag commodities average volume of 915K contracts declines 5%. Metals average volume of 324K contacts falls 27%, and energy of 1.4M is down 18%.
- CME -1.5%
Jan. 15, 2014, 3:09 PM
- IntercontinentalExchange (ICE -3.3%) slumps following new EU rules designed to increase competition among derivative exchanges. They include provisions which could make it easier for an investor to open a trade at one exchange and close it at another.
- “We understand investors are concerned about the vertical silo, but a lot more needs to be clarified,” says Sandler's Rich Repetto, noting ICE has maybe 5 years to react to the rules.
- Wells Fargo defends as well, saying the lack of available details makes it difficult to judge how damaging they may be to ICE.
- It's a buying opportunity, says Raymond James.
- Competitor CME Group (CME +0.9%) - which does far less business in Europe - is cruising through the news.
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.
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