CME - CME Group Inc.
| Previous close | 206.64 |
| Open | 207.38 |
| Bid | 206.25 x 1100 |
| Ask | 206.36 x 1400 |
| Day's range | 205.16 - 208.00 |
| 52-week range | 161.05 - 224.91 |
| Volume | 538,576 |
| Avg. volume | 1,242,541 |
| Market cap | 73.87B |
| Beta (3Y monthly) | 0.20 |
| PE ratio (TTM) | 36.13 |
| EPS (TTM) | 5.71 |
| Earnings date | 12 Feb 2020 - 17 Feb 2020 |
| Forward dividend & yield | 3.00 (1.45%) |
| Ex-dividend date | 2019-12-09 |
| 1y target est | 216.06 |
- Bloomberg
Chicago Trading Titan Don Wilson Says Libor’s Obituaries Are Premature
(Bloomberg) -- Chicago trading legend Don Wilson suspects the scandal-tainted Libor interest-rate benchmark is going to stick around past its 2021 expiration date, defying the expectations of the Federal Reserve and other regulators.In two years, banks will no longer be required to supply data used to calculate the London Interbank Offered Rate. But that doesn’t mean they’ll stop, Wilson, the chief executive officer and founder of futures-and-options giant DRW Holdings LLC, said in an interview Monday at his office.Assuming Wilson’s right and banks do keep feeding Libor, that means there’s a future, too, for eurodollars. Those contracts at CME Group Inc.’s exchange are futures on three-month U.S. dollar Libor, and they can’t exist in their current form without it. They’re also the most-traded rates contracts in the world and a staple of Wilson’s firm from the start, making this more than just an ivory-tower discussion about rates benchmarks.Traders are gradually embracing products based on the Federal Reserve Bank of New York’s Libor replacement, the Secured Overnight Financing Rate. But while SOFR has its place, Libor administrator Intercontinental Exchange Inc. has addressed the benchmark’s problems, and doing away with it would be a mistake, Wilson said. His view is informed in part by SOFR’s volatility during September’s upheaval in U.S. funding markets.“SOFR is a useful risk-management tool, but SOFR is not a good replacement for Libor,” Wilson said. “Why do we want to start this kind of forced march towards the death of Libor when there are clearly some problems?”He’s not the only one who thinks Libor will live on. “Whether Libor is going to be dead or not in a couple of years is yet to be seen,” CME CEO Terry Duffy said in an October interview. Accenture Plc released a survey in September revealing almost a quarter of global financial firms and corporate users expect Libor’s phase-out to be delayed.Few voices are more prominent than Wilson’s on the subject of rates derivatives and their benchmarks. DRW is one of the biggest high-frequency traders in the world, and it’s a large player in eurodollar contracts, a primary way investors around the globe bet on or hedge against moves in interest rates.The 51-year-old’s roots with those products are deep. He started working in the Chicago Mercantile Exchange’s eurodollar trading pits in 1989. From there, he grew DRW into a company with more than 1,000 employees that’s not only a huge market-maker in futures, options and other conventional financial products, but also a major presence in cryptocurrencies as well as a real-estate and venture-capital investor.SOFR, “a wonderful tool if you’re hedging repo exposure,” can’t easily fill Libor’s shoes, Wilson said. As a secured rate -- because the loans it references are collateralized -- it lacks the credit component of Libor, which involves unsecured transactions. There’s no term structure for SOFR, or maturities beyond overnight. And it’s “affected by exogenous factors in a big way,” Wilson said. That vulnerability was exposed by the mid-September chaos in the U.S. market for repurchase agreements.“We saw in September the repo market basically break, resulting in SOFR trading at a 300-basis-point premium for one night,” Wilson said. Borrowers who saw their interest expense spike because of such a jump would have good reason to be annoyed, he argued. “I just don’t think that that’s a great characteristic for our new benchmark rate to have.”U.S. regulators are clear on where they stand. They want Libor -- which banks were caught manipulating -- gone and for SOFR to take its place. New York Fed President John Williams is fond of counting down to the end of Libor. Speaking on Tuesday, he said the clock stood at roughly 775 days and “only goes one direction.”Officials globally are working on similar transitions, and while details are still being worked out, “the one thing we do know is there’s some point in the future when Libor -- which doesn’t meet standards of a strong, robust reference rate -- won’t be around any more,” Williams said.CME last week proposed plans for what it will do in the event that Libor becomes unavailable to settle eurodollar futures. Basically, it will convert them into SOFR futures, which began trading in May 2018.“If I were running CME, I don’t think I would do anything different,” Wilson said. Volume and open interest for these SOFR products have mounted quickly, but remain dwarfed by eurodollar futures.Williams dismissed criticism of SOFR in his appearance Tuesday. He said that while any transactions-based rate is vulnerable to spikes, SOFR on a three-month average basis “hasn’t been volatile at all.” The New York Fed’s plan to produce SOFR averages and an index by mid-2020 should address concerns, he said.There’s a sense in which killing Libor now seems like a waste, Wilson said. ICE Benchmark Administration, which took over running the rate in 2014, “has put additional things in place to make the Libor reporting more robust,” he said. “Is the benefit of killing Libor -- i.e. moving away from something that is a little bit less tangible to something else -- really worth the risk?”Either way, DRW is already preparing for December 2021. It’s trading CME’s SOFR contracts.To contact the reporters on this story: Elizabeth Stanton in New York at estanton@bloomberg.net;Nick Baker in Chicago at nbaker7@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Mark Tannenbaum, Dave LiedtkaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Baidu, Live Nation Entertainment, CME, MarketAxess and Nasdaq highlighted as Zacks Bull and Bear of the Day
Baidu, Live Nation Entertainment, CME, MarketAxess and Nasdaq highlighted as Zacks Bull and Bear of the Day
- Zacks
CME Group (CME) to Launch Bitcoin Options in Early 2020
CME Group (CME) unveils options on Bitcoin Futures to help clients in hedging bitcoin price risk.
- Financial Times
CME adds to its range of cheese futures
CME Group, the world’s largest futures exchange, said on Thursday it planned to launch futures and options on blocks of US cheddar from early next year. The move reflects shifting consumer tastes away from processed cheese and towards fresher and more healthy choices — and the growing popularity of foods that use large amounts of the dairy goods, such as Italian and Mexican dishes. , which are based on a blended monthly average price of block and barrel cheese.
- Bloomberg
CME Plans to Start Brazilian Soybean Futures With B3 Exchange
(Bloomberg) -- CME Group Inc. plans to start Brazilian soybean futures with the country’s B3 exchange, giving traders a new hedging tool as the U.S.-China trade war disrupts the global flow of beans, people familiar with the matter said.The contract for soybeans loaded at the port of Santos, Brazil’s biggest, would be cash-settled, according to the people, who asked not to be identified because the plan hasn’t been announced. Futures will be based on assessments by a price-reporting agency, most likely S&P Global Platts, the people said.Brazil has become a powerhouse in soybeans and overtook the U.S. as the top exporter in the 2012-13 season. Its dominance grew in the past year as the U.S.-China trade spat prompted Chinese buyers to turn to Brazilian supplies. Price dislocations have also boosted the need for new hedging tools as benchmark futures traded in Chicago are for beans delivered in the U.S.Both B3 and CME declined to comment.CME, which also owns benchmark futures for corn and wheat, had previously confirmed it was considering starting a Brazilian soybean contract. In May, Chief Executive Officer Terry Duffy said the bourse was working on developing risk-management tools for the Brazilian market and that he wanted to ensure changes in trade flows didn’t skew prices.The soybean contract would extend CME’s suite of cash-settled products, which also include Black Sea wheat, corn and Ukrainian sunflower oil. Cash-settled contracts are gaining popularity as agriculture follows the path of energy markets, where thousands of contracts are already based on assessments from price-reporting agencies.\--With assistance from Fabiana Batista and James Attwood.To contact the reporters on this story: Isis Almeida in Chicago at ialmeida3@bloomberg.net;Megan Durisin in London at mdurisin1@bloomberg.netTo contact the editors responsible for this story: Tina Davis at tinadavis@bloomberg.net, Nicholas Larkin, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Libor’s Demise Will Upend How Hugely Popular Derivatives Work
(Bloomberg) -- CME Group Inc. shed light on what could happen to the exchange giant’s most-traded contracts -- eurodollars, which permit bets on interest rates -- if the scandal-plagued Libor benchmark they’re tied to goes away in two years.Officials at CME on Tuesday proposed a methodology for converting eurodollar futures and options to other derivatives at the exchange, ones linked to an alternative benchmark called the Secured Overnight Financing Rate, or SOFR. The plan could be tweaked based on customer feedback.The U.K. regulator that oversees Libor, the Financial Conduct Authority, will stop compelling banks to submit data used to calculate Libor in 2021. CME Chief Executive Officer Terry Duffy said in an October interview that the benchmark isn’t guaranteed to go away then. But Libor is so deeply embedded in the global financial system that even a slim chance it disappears means contingency planning is necessary.CME officials Sunil Cutinho and Agha Mirza said on a Tuesday webinar what would happen if there’s a “fallback trigger,” meaning the FCA or ICE Benchmark Administration, the company that maintains Libor, says the index won’t be provided anymore. In that case, eurodollar futures would be turned into SOFR futures, converted to the same month’s expiration at a price determined by the pre-fallback eurodollar price plus a spread adjustment.Eurodollar options would continue to be listed because converting them “would result in non-standard strike prices different to the standard listed strike prices” for SOFR options, Cutinho said. However, upon exercise, the resulting “synthetic” eurodollar futures contract would convert immediately into a corresponding SOFR futures contract.“Without a fallback trigger, the eurodollar complex will remain unchanged,” Mirza said. “Eurodollar futures and options remain deeply liquid and continue to grow year after year.”The stakes are high for CME, given that eurodollar futures are the most-traded interest-rate derivatives tracked by the Futures Industry Association. Almost 380 million of them changed hands during the first half of the year, according to the trade group. Libor is currently used to settle $67 trillion in listed products including eurodollar futures and options, Cutinho said.CME plans to offer customers support in converting their eurodollar options to SOFR options, which are slated to debut on Jan. 6, Cutinho and Mirza said. Also, in the event of a fallback trigger, CME would immediately create new contracts to fill in any gaps where there are eurodollar expirations but not corresponding ones for SOFR.CME’s proposed methodology aligns with the International Swaps and Derivatives Association’s proposed methodology for settling swaps in the event that Libor production ceases, exchange officials said.To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
Intercontinental (ICE) to Launch Futures Exchange in Abu Dhabi
Intercontinental Exchange's (ICE) futures exchange to enable trading in Murban crude-oil future contracts.
- Zacks
MarketAxess (MKTX) Up 70% This Year: Is Further Upside Left?
MarketAxess (MKTX) is driven by growth in business and market share and strong capital position.
- Zacks
Solid Near-Term Outlook for Securities and Exchanges Industry
Solid Near-Term Outlook for Securities and Exchanges Industry
- Zacks
Cboe Global's (CBOE) Q3 Earnings and Revenues Beat Estimates
Cboe Global Markets (CBOE) third-quarter 2019 earnings reflect higher trading volumes.
- Zacks
Should You Invest in the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI)?
Sector ETF report for IAI
- Zacks
Stock Market News For Oct 31, 2019
Benchmarks closed in the green on Wednesday as the Federal Reserve cut rates for the third time this year, and Chairman Jerome Powell signaled no rate hikes until he witness a "really significant" rise in inflation.
- Zacks
CME Group (CME) Q3 Earnings and Revenues Top Estimates
CME Group's (CME) third-quarter 2019 results reflect solid trading volumes.
- Investing.com
CME Group Earnings, Revenue Beat in Q3
Investing.com - CME Group reported third quarter earnings that beat analysts' expectations on Wednesday and revenue that topped forecasts.
- Zacks
CME Group Sees Hammer Chart Pattern: Time to Buy?
CME Group has been struggling lately, but the selling pressure may be coming to an end soon.
- Zacks
CME Group (CME) to Report Q3 Earnings: What's in the Cards?
CME Group (CME) Q3 earnings are likely to have benefited from expanded futures products, OTC offerings and higher clearing and transaction fees.
- Bloomberg
Libor’s 2021 Demise Is Far From Assured, CME CEO Duffy Says
(Bloomberg) -- Regulators say Libor is guaranteed to live only about 800 more days. But the head of exchange operator CME Group Inc., whose most-traded contract needs the London interbank offered rate to survive, says the transition to a successor might take longer than that.The Chicago-based exchange is home to eurodollar futures and options, U.S. interest-rate contracts whose final value is determined by Libor. They’ve been CME’s bread and butter for decades, and the business continued to expand even after regulators found banks manipulated Libor for years -- the very reason behind efforts to shift away from the benchmark.“Whether Libor is going to be dead or not in a couple of years is yet to be seen,” Terry Duffy, the chief executive officer of CME, said during an interview Wednesday at his office in Chicago. “If anybody says they have the ultimate answer then they would’ve told you that they knew what Brexit was going to be three years ago.”The U.K. Financial Conduct Authority, which regulates Libor, will stop making banks contribute numbers used to compile the index by the end of 2021. Whether they actually do will depend on the incentives, Duffy said.The stakes are high for Duffy’s eurodollar product, given that those futures are the most-traded interest-rate derivatives tracked by the Futures Industry Association. Almost 380 million of them changed hands during the first half of the year, according to the trade group.“To the extent trading in Eurodollar contracts decreases and our alternative contracts are not successful, our revenues would be negatively impacted,” CME said in its latest annual report.Some analysts, including JPMorgan Chase & Co.’s Joshua Younger, suspect Libor could continue on with fewer banks participating. Younger worries such a “zombie Libor” would pose problems for markets.Duffy suspects several benchmarks will end up succeeding Libor. “Everybody’s comfortable with what they know, and they’re uncomfortable with what they don’t know,” he said. “So that’s why I think the transition into whatever it looks like will probably take longer than most people think. And that’s OK.”U.S. regulators in 2018 developed the Secured Overnight Financing Rate as a successor to Libor, and CME has listed futures on it and plans to begin testing options on them next month. While SOFR has hit snags -- including last month when it briefly soared amid a shortage in the U.S. funding market that provides the inputs -- volume and open interest are growing quickly.But Duffy acknowledged that there are alternatives, including Ameribor, a benchmark for smaller U.S. banks created by Chicago trading legend Richard Sandor.“If I had to bet, which I’m not a betting man, I would say that you’ll probably have a hybrid of multiple different benchmarks,” he said.\--With assistance from Michael Hirtzer.To contact the reporter on this story: Nick Baker in Chicago at nbaker7@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Elizabeth Stanton, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Bloomberg
Vanity Fair’s Trump Trade Story Is ‘Nonsensical,’ Says Exchange CEO
(Bloomberg) -- The head of the exchange where, according to a Vanity Fair article last week, a cabal of investors suspiciously earned billions of dollars by trading before market-moving news says the transactions didn’t happen.The article’s thesis is built atop a faulty reading of the trading record, said Terry Duffy, chief executive officer of CME Group Inc. He said it mistakenly summed up all volume for those derivatives during spans of time and implausibly attributed that buying and selling, spread across thousands of transactions, to a single bad actor or group of cheaters.“It’s the most irresponsible thing I’ve ever seen in my entire life,” Duffy said during an interview Wednesday in his Chicago office. “Listen, I’m not sticking up for anybody. But the way they calculated that was so nonsensical. The article should’ve been written in crayon.”Duffy didn’t rule out that market-moving information could be leaking from the White House. He just doesn’t think Vanity Fair proved that. The article prompted calls from some Democratic lawmakers for an insider-trading probe.Duffy is not the first person to criticize the story but he’s the most authoritative one to respond to the allegations given that e-mini S&P 500 futures -- the contracts in question -- are only traded at the exchange he leads. The article has been met with widespread skepticism from the financial services industry, while CME said in an Oct. 18 statement that the allegations are “patently false.”The author, William D. Cohan, stood by the article when reached Thursday.“When you speak with people who have been trading 40 or 50 years, people trading e-minis as long as they’ve been around, and it goes against their gut instinct, you get the numbers, you see the timing more or less lines up, you write a story,” Cohan said. “I’m sorry it’s upset Mr. CME and he’s calling me a child, but you know we’ve got senators now who are calling for an investigation. Let’s let regulators do their job.”\--With assistance from Michael Hirtzer, John Hughes, Kim Chipman and Sarah Ponczek.To contact the reporter on this story: Nick Baker in Chicago at nbaker7@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Flynn McRoberts, Jenny ParisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Zacks
MarketAxess (MKTX) Beats Q3 Earnings & Revenue Estimates
Growth in trading volumes aids MarketAxess' (MKTX) Q3 results.
- Zacks
CME Group (CME) Reports Next Week: Wall Street Expects Earnings Growth
CME (CME) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Zacks
Nasdaq (NDAQ) to Report Q3 Earnings: Is a Beat in Store?
Nasdaq's (NDAQ) third-quarter earnings are likely to have benefited from expansion of index and analytics businesses, growth in exchange data products across U.S. and Nordic equities.
