Shares of CME Group Inc. (CME) have gained 6.1% in the past year, underperforming the industry and the Zacks S&P 500 composite's growth of 20.3% and 23.6%, respectively. CME Lags Industry and S&P Image Source: Zacks Investment Research CME Group's diversified product portfolio is significantly exposed to extreme interest rate volatility, currency fluctuation, strict government regulations and limited credit availability. The current unstable capital and credit markets can hamper liquidity and cause a declin ...

Klaus Vedfelt Introduction I spend a lot of time on X (formerly known as Twitter) - probably more than I should. Lately, two things have started to stand out to me: We often discuss consumer weakness. Companies like Dollar General (DG) are seeing tremendous pressure on the lower-income consumer. Even McDonald's (MCD), which is usually protected against consumer weakness, had to come up with measures to grow its sales. While the lower and middle class are struggling, investors with stock market exposure seem ...

Record interest rate ADV of 18.3 million contracts Record U.S. Treasury futures and options ADV overall, including record volume for 2-year, 5-year and 30-year futures contracts Record August ADV in equity index, agricultural, foreign exchange and options products Record international ADV of 8.9 million contracts CHICAGO, Sept. 4, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today reported its second-highest monthly volume ever, with average daily volume (ADV) up 31% to 31.7 ...

Group 1 - BofA Securities analyst Craig Siegenthaler downgraded CME Group Inc from Neutral to Underperform, lowering the price target from $212 to $177 due to increased competition from BGC Group, Cboe Global Markets, and Intercontinental Exchange [1] - CME is expected to reduce pricing on interest rate futures by over 10% as a defensive strategy in response to the upcoming launch of BGC's FMX Futures Exchange [2] - CBOE's index options volume is projected to grow at a 15% CAGR through 2026, indicating a potential shift where options may increasingly replace CME's equity futures [2] Group 2 - The VIX surged 34% to an average of 19 in August, up from 14 the previous month, driven by weak U.S. employment data, leading to CME's strongest trading volumes since the COVID-19 pandemic [3] - CME's trading volumes in August rose 28% month-over-month, particularly in financial futures, contributing to its stock outperforming all sectors in coverage and the S&P 500 [4] - Despite the current high volatility, a downward normalization is anticipated throughout 2025, suggesting the second half of 2024 may be an appropriate time for the Underperform rating [4]

Core Insights - CME Group has set a new record for open interest in SOFR futures, reaching 12,701,232 contracts on August 28, 2024, with an average daily volume of 3.5 million contracts year-to-date [1][2] Group 1: SOFR Futures Performance - The average daily volume for CME Group SOFR options is 1.6 million contracts year-to-date, with open interest exceeding 42 million contracts [2] - SOFR futures, launched in May 2018, have seen broad participation from various market participants including global banks, hedge funds, and asset managers [3] Group 2: Market Position and Offerings - CME Group is recognized as the world's leading derivatives marketplace, providing tools for managing interest rate risk with high efficiency and liquidity [2] - The company offers a wide range of global benchmark products across major asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals [4]

Investors in CME Group Inc. (CME) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep. 20, 2024 $180 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also m ...

CME Group logo displayed on a phone screen and a laptop keyboard are seen in this illustration photo ... [+] taken in Krakow, Poland on January 29, 2023. (Photo by Jakub Porzycki/NurPhoto via Getty Images) NurPhoto via Getty Images CME Group's stock (NASDAQ: CME) has largely traded sideways since the beginning of the year and has not seen much change as compared to the 17% rise in the S&P 500 over the same period. In sharp contrast, CME Group's peer Intercontinental Exchange (NYSE: ICE) is up 25% YTD. We be ...

CHICAGO, Aug. 28, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will launch two new wheat spread futures contracts on October 14, pending regulatory review. The CBOT Wheat - Euronext Milling Wheat No. 2 Spread futures contract and the KC HRW Wheat - Euronext Milling Wheat No. 2 Spread futures contract will each be U.S. dollar-denominated in metric tons and based on the spread between either CBOT Wheat futures prices or KC HRW Wheat futures prices and Eu ...

CHICAGO, Aug. 27, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced it will further expand its cryptocurrency derivatives offerings with the introduction of Bitcoin Friday futures (BFF) on September 30, pending regulatory review. Sized at one-fiftieth of one bitcoin, these new weekly futures contracts will be cash-settled to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) at 4:00 p.m. New York time every Friday. A new BFF contract will be listed every Th ...

18 il and and and Richard Drury Much attention is focused on owning hard assets such as physical real estate and energy pipelines, and while those are great asset classes to have in a portfolio, financial real estate can be just as compelling for long-term investors. What I would call financial real estate includes investment platforms like the Intercontinental Exchange (ICE) and Nasdaq (NDAQ), which facilitate global trading activity. Thanks to the digitization of trading platforms, transaction volume has ...