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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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
- Source: Press Release
Jul. 16, 2014, 4:15 AM
- The Chicago Mercantile Exchange (NASDAQ:CME) has begun a review of electronic trading hours for its cattle and hog contracts and may decrease trading hours to concentrate volumes and curb market volatility.
- "We're in the early stages...we're beginning the process of conducting a review based on customer feedback," says CME spokesman Chris Grams.
Jul. 11, 2014, 8:29 AM
- CME Group and Thomson Reuters (TRI) have won the battle to operate the London silver fix when the current system is disbanded next month, says the London Bullion Market Association.
- CME's role will be to provide a price platform and methodology, while Thomson Reuters will be charged with administration and governance.
- The silver fix is currently set each day at noon by three banks (Deutsche, HSBC, and Scotiabank) via conference call, but there's been just a bit of scrutiny of late about possible benchmark manipulation in a number of other markets.
- Silver's overhaul is likely just the beginning, with the gold, platinum, and palladium fixes next on tap for reform.
Jul. 2, 2014, 8:00 AM
- June volume of 12.7M contracts fell 2% from May and 25% from a year ago.
- It's all about interest rates, and, while volatility was booming a year ago in June, not much was going on this year. Interest rate volume of 6.4M contracts last month was also off 25% Y/Y, with Eurodollar volume of 2.6M contracts off 24%. Treasury futures volume of 2.4M contracts slid 27%.
- Equity index volume of 2.5M contracts gained 14% from May, but was 35% lower Y/Y.
- In other news, CME received dividends from its 5% ownership stake in Bovespa, with the total for Q2 being about $8.5M.
- Source: Press Release
Jun. 13, 2014, 2:35 PM
- Terrorist turmoil in Iraq and a surprise move towards rate hikes in Britain are proving a boost for CME Group which announces record trading volumes for both its NYMEX Brent crude oil and its British pound contracts yesterday.
- Volume for Brent hit 112,446 contracts compared to the previous record last August of 104,839, and pound futures hit 337,633 contracts compared to the previous record in May 2010 of 307,280.
- Source: Press Release
Jun. 9, 2014, 10:20 AM
- CME Group plans to launch a London-based Cocoa contract within the next year, Tim Andriesen, the company's head of agricultural products, tells reporters, adding CME is also considering getting into European wheat futures.
- The move into cocoa will surely garner the attention of ICE, which dominates the $15B market.
- Previously: CME reportedly contemplating cocoa contract
Jun. 6, 2014, 2:14 AM
- The National Futures Association says it will reduce its fees on options and futures contracts. Fee revenue is tied to public trading volume, and increased volume and a larger revenue base in recent years has translated into lower agency fees.
- Trading of options and futures takes place on platforms at the CME Group (CME) and the Intercontinental Exchange (ICE)
- The NFA has further lowered the prices due to an increase in membership fees from swap dealers, who pay a fixed membership fee, as opposed to firms trading futures, which pay per trade.
- On October 1, the NFA will halve the price on options and futures contracts, to $0.01 for each side of the trade.
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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