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
Oct. 2, 2014, 7:39 AM
- September 2014 volume of 15.3M contracts per day grew 17% from a year ago, with open interest of 104.1M contacts up 24% YTD.
- A good month for interest rate volatility was behind the big move, with CME Group interest rate volume of 8.1M contacts per day up 23% Y/Y. Eurodollar futures volume of 3.2M contracts rose 26%, and Treasury futures volume of 2.9M contacts gained 17%.
- For Q3 as a whole, volume averaged 13.5M contacts per day, up 12% from Q3 in 2013.
- Source: Press Release
Sep. 29, 2014, 11:38 AM
- The China Financial Futures Exchange is the sole financial derivatives exchange in mainland China, and CME Group has agreed to license and distribute CFFEX market data to CME customers outside of the mainland.
- "Through this relationship, CME Group establishes itself as a critical component for global customers that want access to Chinese markets," says CME CEO Phupinder Gill.
- Press release
Sep. 16, 2014, 3:34 PM
- "[The] plaintiffs today are acknowledging what CME has said all along: The claims are meritless and should have never been brought in the first place," says CME Group in a statement, noting the plaintiffs will not be receiving any money in exchange for pulling the suit.
- At issue was CME's (the owner of the CBOT) move to include electronic transactions to determine closing grain prices, a decision the traders claim was made with getting proper approval from members, and one that would put them out of business.
Sep. 15, 2014, 2:58 PM
- CME Clearing chief since 2004, Kim Taylor will become President , Global Operations, Technology & Risk. She'll be replaced as head of CME Clearing by her current deputy, Sunil Cutinho.
- Chief Commercial Officer Bryan Durkin will take on a newly created role designed to serve and support "our global client base by ensuring the development, delivery and maintenance of industry leading products, platforms and services."
- Sean Tully will be in charge of CME Group Interest rate, Equity, Foreign exchange, and OTC businesses. He previously led the Interest rate and OTC businesses.
- Also with expanded roles are Derek Sammann and Robert Zagotta.
- Source: Press Release
Sep. 11, 2014, 8:05 AM| Comment!
Sep. 9, 2014, 3:18 AM
- BGC Partners (NASDAQ:BGCP), the second-largest broker by market capitalization, is looking to bolster its business through a $675M unsolicited offer for rival GFI Group (NYSE:GFIG).
- The takeover proposal would not be the first from BGC, having had all of its previous buyout offers rejected by GFI.
- The new bid could also throw into doubt GFI's recent agreement to sell itself to CME Group (NASDAQ:CME) for $580M in stock.
Sep. 5, 2014, 12:04 PM
- CME Group and Thomson Reutoers (NYSE:TRI) recently won the rights to handle the silver fix and appear ready to be tapped to do the same for gold. The four banks currently in charge of the gold fix together with the London Bullion Market Association yesterday called for interested firms to submit proposals to replace the current telephone-based system, and the winning bid will be announced in October.
- Most in the business believe CME/Thomson Reuters to be the clear favorites, partly due to their winning the silver business. As the sliver process could be scaled to gold, one close to the process wonders whether any other companies will even bother trying to beat out the duo.
Sep. 5, 2014, 3:01 AM
- IntercontinentalExchange (NYSE:ICE) is the next on Wall Street to push back against Bloomberg’s dominance.
- Following the CME Group (NASDAQ:CME) which has invested in Wickr and Goldman's (NYSE:GS) Perzo investment, ICE is now expected to pay $350M for SuperDerivatives, a Tel-Aviv based business that provides data and analytics on OTC derivatives and contains a chat platform.
- The acquisition also includes the group’s DGX product, which allows traders to analyze theoretical trades before they execute them and grants access to live pricing and news.
Sep. 3, 2014, 12:08 PM
- Average volume of 13M contracts per day in August was up 7% from a year ago, led by a 20% gain in interest rate volume to 7.3M contracts, with Eurodollar volume of 2.3M contracts up 29%.
- Equity index volume of 2.3M contracts per day slipped 3% from a year ago, and agricultural commodities volume of 1.1M contracts dropped 5%. Energy group volume of 1.4M contracts fell 8%.
- Press release
- CME -0.15%
Aug. 25, 2014, 2:14 AM
- CME Group (NASDAQ:CME) delayed the start of trade on its electronic platform by four hours this morning, halting the sale of all contracts on its Globex Markets platform, apart from Bursa Malaysia derivatives, due to a technical glitch.
- Traders in Asia say the delay will only have a limited impact, with thin volumes likely this morning due to the lack of major market-moving news over the weekend.
- The delay marks the latest glitch to hit CME, which shut electronic trade for leading agricultural contracts on April 8 in the worst-ever trading outage for those markets.
Aug. 5, 2014, 1:25 PM
- More than 50% of U.K. gas trades and up to 91% of those in the Dutch market were handled in June by OTC brokers, according to Trayport data.
- “We know from our client base that there’s interest in clearing gas contracts in major hubs and the most actively traded at the moment are NBP (U.K.) and TTF (Netherlands),” says the CME's Martin Fraenkel in a Bloomberg interview. "There's client interest in having other clearing venues for those hubs and that’s why we prioritized them."
- CME last week agreed to buy Trayport parent GFI Group for $580M, pitting itself against IntercontinentalExchange (ICE -0.8%) which operates Europe's largest energy market.
Aug. 4, 2014, 7:57 AM
- CME Clearing Europe receives authorization as a Central Counterparty Clearing House (CCP) under the European Market Infrastructure Regulation. The approval overs all OTC derivatives and futures products currently cleared by CME Clearing Europe.
- Source: Press Release
- In other news, CME Group reports July average volume of 12.2M contracts, up 13% from a year ago, and about flat from a month previous. Interest rate volume of 6.2M contracts gained 25%, with Eurodollar futures volume of 2.6M up 40%.
- Source: Press release
Jul. 31, 2014, 8:03 AM
- In Q2, average daily volume of 12.6M contracts fell 12% from a year ago.
- Clearing and transaction fee revenues of $609M also down 12%.
- Total average rate per contract of 74.9 cents fell from 76.7 cents in Q1 as a higher proportion of volume came from the interest rate complex, which has lower average fees.
- Of note, Q2 one year ago was particularly strong as panicky markets reacted to ideas QE could end some day.
- "Historically low levels of volatility impacted the overall market during the second quarter," says CEO Terry Duffy, noting total volumes are nearly flat YTD when compared to a year ago. Volumes in the interest rate complex were higher by 7%, however, and with the Fed getting nearer to rate hikes, Duffy is hopeful for even more action.
- Previously: CME misses by $0.02, misses on revenue
- CME -1.5% premarket
- Conference call is set for 8:30 ET
Jul. 31, 2014, 7:02 AM
Jul. 30, 2014, 5:30 PM
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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.
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