|Bid||162.83 x 1300|
|Ask||162.90 x 900|
|Day's range||161.66 - 163.61|
|52-week range||131.80 - 225.36|
|Beta (5Y monthly)||0.32|
|PE ratio (TTM)||24.66|
|Earnings date||28 Oct 2020 - 02 Nov 2020|
|Forward dividend & yield||3.40 (2.09%)|
|Ex-dividend date||09 Sep 2020|
|1y target est||178.16|
(Bloomberg) -- As Nasdaq Inc. and the New York Stock Exchange consider abandoning their New Jersey data centers over a proposed financial transaction tax, they may not find their backup sites in Chicago guaranteed to be levy-free havens.This week, CME Group Inc. Chief Executive Officer Terry Duffy and CBOE Global Markets CEO Ed Tilly visited the Chicago City Council’s finance committee to try to head off an idea floated by some aldermen for the Windy City’s own transaction tax. Duffy said such a levy would result in lost jobs and revenue and his company could move if it was passed.This isn’t Duffy’s first tax fight. In 2016, he said he’d “have no other choice” than to move the company out of the state if it adopted a proposed $1 to $2 tax on trades at CME Group as politicians went searching for new revenue to fix a budget crisis. That measure failed, but an increase in corporate taxes by Illinois in 2011 sparked the same threat to bail from CME.States and municipalities facing multibillion-dollar budget shortfalls from the pandemic are looking for new revenue sources, and the financial industry’s relatively stable profits are a ripe target. Now, rival firms are banding together to fight those proposals, with the threat that electronic operations are flexible enough to avoid new taxes.Nasdaq Inc. will temporarily move some operations to Chicago late next month, escalating a dispute with New Jersey over proposed taxes that would generate billions of dollars from high-speed trading at the stock exchange and its rival firms. The NYSE plans to test a full exit from New Jersey during the week of Sept. 28 by operating its Chicago equity exchange from a secondary data center.There’s no formal ordinance for any transaction tax in Chicago, and any proposal would have to overcome opposition from the city’s chief financial officer, Jennie Huang Bennett, who cited the current New Jersey fight as evidence of such a levy’s ineffectiveness. Even if the city were to push ahead, it would need to seek state authority for such a tax.“The state of Illinois has contemplated a financial-transaction tax in the past but are aware of the transitory nature of exchange operations,” Rich Repetto, an analyst at Piper Sandler & Co., said in an interview. While a transaction tax might be beneficial for a state in the short term, over the long term it would likely cause exchanges to relocate, Repetto said.Read more: Inside the Nondescript Building Where Trillions Trade Each DayNasdaq spokesman Joe Christinat and NYSE spokesman Farrell Kramer declined to comment, as did CME spokeswoman Anita Liskey.In his testimony, CME’s Duffy noted that the company leases space in a data center that has 30 locations in the U.S. where it could move its operations. Two of the most widely used data centers for financial markets are in Aurora, Illinois, and Secaucus, New Jersey.New Jersey Governor Phil Murphy is considering a tax on stocks, options, futures and swaps trading that could go into effect for the 2022 budget year and could drum up $10 billion for the state. Wall Street giants that have also threatened to move operations out of the state include Citadel Securities and Virtu Financial Inc.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
CME Group (CME) boosts its portfolio of energy futures and options with the first trade of European renewable fuel contract.
(Bloomberg) -- If the record heat and wildfires ravaging California weren’t a clear enough sign that the climate is changing, then consider this: Wall Street is about to start trading futures contracts on the state’s water supply.The contracts are the first of their kind in the U.S. and are being created by CME Group Inc., the world’s largest futures exchange. They are intended, CME says, to both allow California’s big water consumers -- like almond farms and municipalities -- to hedge against surging prices and can act as a benchmark that signals how acute water scarcity is becoming in the state and, more broadly, across the globe.Water supplies have been tight for years in California, and large parts of Asia and Africa also face the potential of scarcity as temperatures rise. Almost two-thirds of the world’s population is expected to face water shortages by 2025, according to the CME.“Water scarcity is certainly one of the biggest challenges facing communities and individuals today across the globe, where currently about 2 billion people are already living in countries experiencing high water stress,” Tim McCourt, the global head of equity index and alternative investment products at CME, said in an interview.Wall Street first took significant note of the potential for water after investor Michael Burry drew attention to the commodity 10 years ago when he spoke about investing in farmland with “water on site.” Burry, whose bet against the subprime bubble was spotlighted in “The Big Short: Inside the Doomsday Machine” by Michael Lewis and the 2015 movie, has since exited his water and farm holdings, though he noted last year that there’s “a lot of demand for those assets these days.”The futures could be useful as a hedge instrument for firms including food or agricultural producers, land lease owners, municipalities and public water agencies.“It’s really a unique mechanism for investors themselves and California to be able to at the very least understand and price the risk and potentially hedge the risk of water price volatility,” said Carter Malloy, founder and chief executive officer of AcreTrader, a farmland investing platform. “The crucial thing is right now we have very little visibility” on what water prices will look like in the future, he said.Water preservation and distribution could become increasingly attractive as investors like Jeff Ubben, who recently launched Inclusive Capital Partners, look to tackle problems ranging from environmental damage to food scarcity through their funds.Scientists Are Studying Why California’s Burning: Green InsightClimate advocates have warned in recent years for the potential of water wars as competition increases between needs from agriculture, energy and growing cities. Food production in particular could be vulnerable as drought makes it increasingly difficult to grow crops in many parts of the world and farmers balance water and land needs with protecting forest in places like Brazil’s Amazon.“Food is going to be a flash point” in the world going forward as climate change makes production more challenging, Carter Roberts, chief executive officer of World Wildlife Fund, said in an interview at the Bloomberg Green Festival this week.CME’s contract, tied to the $1.1 billion California water market, will launch late this year, pending regulatory review, and will be based on the Nasdaq Veles California Water Index, the bourse said Thursday.In California, about 40% of water currently consumed in the state goes to crop production. The CME contract will help to create a forward curve so users can hedge future price risk, the bourse said.“What we really wanted to be able to do was firstly to provide clear and transparent rules-based information to the marketplace,” said Patrick Wolf, a senior manager for Nasdaq Global Indexes.(Adds analyst quote in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.