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
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
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. 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)
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
Wed, Mar. 4, 3:48 PM| Comment!
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."
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)
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, 4:14 PM
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, 5:35 PM
- ACET, ACLS, ADNC, AHL, AIV, ARCW, ASEI, ASYS, ATHN, ATR, ATVI, BCOV, BEBE, BMI, BRKS, BRS, BWLD, CALD, CME, CPST, CTRL, CUTR, DCT, DV, ECHO, ECOM, EGAN, EGOV, ENH, EXPE, FLDM, FLT, FWM, GPRO, HME, IMPV, KIM, KRG, LF, LGF, LNKD, MCK, MRIN, MTD, MXWL, NTGR, NUAN, OLN, ONNN, OUTR, P, PCTY, PDFS, PDM, PXLW, RDEN, RENT, SIMG, SLH, SPF, SPSC, SRCL, SWIR, SYMC, TPX, TSYS, TWTR, UBNT, UEPS, VRSN, WAIR, YELP, YRCW
Tue, Feb. 3, 7:43 AM
- CME January volume of 15.6M contracts per day was up 21% from a year ago.
- Interest rate volume of 7.7M contracts per day up 22% Y/Y, with Eurodollar futures of 3M, up 16%.
- Forex volume of 996K contracts per day up 21%. Agricultural commodities volume of 1.1M up 11%. Energy volume of 2.2M up 19%.
- Source: Press Release
Fri, Jan. 30, 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)
Thu, Jan. 29, 2:59 PM
- "I urge you NOT TO BE FOOLED (Gooch's caps, not ours) by BGC's (BGCP +0.2%) continued insistence on ignoring the conditionality of its offer," says GFI Group (GFIG -2.3%) Executive Chairman Michael Gooch (who also controls 36% of the stock) in another letter to shareholders.
- According to Gooch, should shareholders reject the CME Group/GFI bid tomorrow, there is little stopping BGC Partners from pulling its $6.10 per share offer and then poaching off GFI employees.
- The stock's decline today has it trading at $5.64 vs. CME's $5.85 cash/stock deal and BGC's $6.10 cash offer.
- Previously: BGC Partners reaffirms $6.10 cash offer for GFI (Jan. 29)
- Previously: BGC Partners/GFI Group tennis match continues (Jan. 28)
- Previously: Head of GFI Group writes open letter urging acceptance of CME bid (Jan. 27)
CME vs. ETF Alternatives
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.
Other News & PR