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 ...

Core Viewpoint - CME Group is set to launch two new wheat spread futures contracts on October 14, pending regulatory review, to enhance global wheat trading efficiency [1][2]. Group 1: New Product Launch - The new contracts include the CBOT Wheat - Euronext Milling Wheat No. 2 Spread futures and the KC HRW Wheat - Euronext Milling Wheat No. 2 Spread futures, both denominated in U.S. dollars and based on the spread between U.S. wheat futures prices and Euronext Milling Wheat No. 2 futures prices [2][3]. - These contracts aim to provide clients with innovative tools to manage wheat price exposure more effectively, reducing the need for transactions across multiple venues and allowing trading in a single currency [3]. Group 2: Market Context - The introduction of these spread futures contracts reflects the increasing globalization and interlinkage of the wheat trade, indicating a shift towards more integrated trading solutions [3]. - CME Group's offerings include a wide range of global benchmark products across major asset classes, which positions the company as a leader in risk management and opportunity capture for market participants [4].

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 ...

Core Viewpoint - CME Group is positioned as a compelling investment opportunity in the financial real estate sector, offering strong growth, dividend growth, and value at its current price [2][7]. Company Overview - CME Group is a leading global derivatives marketplace, facilitating trading in futures and derivatives based on commodities, energy, metals, and foreign currencies [3]. - The company operates similarly to a 'pick and shovel' investment, profiting from trading volume rather than price increases [3]. Financial Performance - CME Group reported a 13% year-over-year revenue growth to $1.5 billion in Q2 2024, achieving a quarterly record [4]. - Average daily volume increased by 14% year-over-year, with notable growth in energy (16%) and metals (42%) products [4]. Strategic Initiatives - CME is innovating in the digital space through a partnership with Google Cloud, establishing a co-location facility in Illinois to enhance global trading capabilities [4]. - The company plans to leverage AI and data capabilities to improve trading strategies [4]. Market Position and Valuation - CME Group has a strong market position with a fortress balance sheet, an AA- credit rating, and a low long-term debt-to-capital ratio of 9.7% [4]. - The company offers a dividend yield of 4.8%, supported by a 46% payout ratio and a 5-year CAGR of 9.2% [4]. - CME's current valuation at $207 reflects a forward PE of 20.9, which is favorable compared to its historical PE of 27 and peers with higher forward PEs [4][5]. Growth Prospects - The company is expected to achieve long-term annual EPS growth in the mid-single digits, combined with a near-5% yield, potentially delivering market-level total returns [5]. - CME's revenue growth outpaces that of peers like CBOE and Nasdaq, making it an attractive investment option [6]. Investment Thesis - CME Group is characterized by high profitability, strong growth prospects, and a robust dividend yield, making it well-positioned to benefit from ongoing demand for risk management products amid geopolitical and economic uncertainties [7].

Core Insights - CME Group has opened registration for the 21st annual University Trading Challenge, scheduled from October 6 to October 31, 2024, with a registration deadline of October 2, 2024 [1][4] - The challenge is designed for undergraduate and graduate students globally, allowing them to manage mock investment portfolios while addressing various marketplace risks [2][4] - Last year's competition featured over 400 teams and 1,865 students from 24 countries, with the winning team from Universidad De Guadalajara, Mexico [4] Educational Focus - The University Trading Challenge provides an interactive experience for students to learn about managing investment portfolios using a professional trading platform [3] - Participants will receive market-related data and news, including live updates from Dow Jones and The Hightower Report, to enhance their trading skills [3][5] - CME Group emphasizes the importance of risk management and global derivatives markets through educational initiatives like this challenge and other resources [5] Company Overview - CME Group is the leading derivatives marketplace, facilitating trading in futures, options, cash, and OTC markets, and providing tools for risk management [6] - 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 [6] - CME Group operates the CME Globex platform for futures and options trading, BrokerTec for fixed income trading, and EBS for foreign exchange trading [6]

A month has gone by since the last earnings report for CME Group (CME) . Shares have added about 5.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is CME due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. CME Group Q2 Earnings Top on Record Trading Volume CME Group re ...

Core Viewpoint - Global markets are experiencing significant volatility due to recession fears, highlighted by disappointing nonfarm payroll data and a rising unemployment rate, which triggered the Sahm Rule indicating a potential recession [1]. Market Dynamics - Expectations for a 50 basis point rate cut in September have surged, leading to a significant appreciation of the Japanese yen against the U.S. dollar, which has caused fixed-income traders to close carry trades due to increased currency risk [2]. Company Performance - CME Group Inc. (CME) has stood out in the S&P 500, recording gains while most companies faced drastic drops, showcasing its resilience amid market volatility [3]. Revenue Sources - CME generates revenue primarily from transaction fees and clearing and settlement fees, with market data sales being a minor source [4]. Cost Structure - Non-compensation expenses are largely driven by technology, which accounted for 12.10% of total costs in Q2, while the company maintains high operating leverage with an EBIT of 65.30% [5]. Market Conditions Impact - Increased trading volume in derivative markets benefits CME, as high volatility leads to more contracts being negotiated, and its product exposure is well-diversified across different contracts [5]. Investment Opportunity - Given the potential for a global recession and a tight U.S. election, adding CME to an equity portfolio offers diversification benefits, especially since it has a low beta of 0.34 and lower volatility compared to broader market indices [6]. Dividend Growth - CME has consistently paid quarterly dividends and special dividends, with a compound annual growth rate of 8.90% for regular dividends since 2013, although special dividends are more volatile [8][9]. Dividend Yield - The current dividend yield is attractive, with a potential yield of 4.77% based on the last regular dividend and special dividend, which could increase to 5.15% when factoring in growth rates [9]. Valuation - CME is considered fairly valued, with its stock price approximately $20 below the intrinsic value of $226.86, indicating a solid investment opportunity [11]. Key Multiples - CME has a high valuation rating of 7 out of 10, with a PE ratio of 21.30, which is below its 10-year median, making it appealing compared to historical metrics [13]. Conclusion - In times of rising uncertainty, CME is a strong candidate for reducing beta exposure in equity portfolios, supported by its monopolistic characteristics and consistent dividend growth [14][15].

Cryptocurrency Market Overview - The cryptocurrency market experienced a significant downturn in early August, with Bitcoin's price dropping below $55,000 after reaching an all-time high of $73,750 on March 14 [1] - Bitcoin's price had been on a steady decline since April, influenced by the halving event that reduced mining rewards and typically increases demand, yet the price fell below $59,000 [3] Bitcoin ETFs and Market Impact - The approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the SEC in January marked a significant milestone, providing regulated access for both retail and institutional investors, enhancing liquidity and price stability [2] Economic Indicators and Interest Rates - Weak economic data in July, particularly labor market statistics, led to a 100% probability of a 25-basis point interest rate cut in September, with a 51.5% chance of a 50-basis point cut [4] - For November, there is a 100% probability of a total year-to-date rate cut of 50 basis points, and for December, a 100% probability of a 75 basis point cut, with a 72.4% chance of a total cut of 1% in 2024 [5] Investment Strategies - A long-term investment perspective is recommended, as the Fed approaches the end of the higher rate regime, which is favorable for high-growth sectors including technology, consumer discretionary, and cryptocurrency [6] - A buy-on-the-dip strategy for Bitcoin is suggested, as price dips present good purchasing opportunities [6] Stocks in Focus - Five Bitcoin-oriented stocks with strong potential for the remainder of 2024 have been identified: - **CME Group Inc. (CME)**: Expected earnings growth rate of 4.9% for the current year, with a Zacks Rank 3 (Hold) [8] - **NVIDIA Corp. (NVDA)**: Expected earnings growth rate of over 100% for the current year, with a Zacks Rank 2 (Buy) [10] - **Interactive Brokers Group Inc. (IBKR)**: Expected earnings growth rate of 18.4% for the current year, with a Zacks Rank 1 (Strong Buy) [11] - **Robinhood Markets Inc. (HOOD)**: Expected earnings growth rate of over 100% for the current year, with a Zacks Rank 2 [13] - **Block Inc. (SQ)**: Expected earnings growth rate of 98.9% for the current year, with a Zacks Rank 3 [15]

Core Points - CME Group Foundation has awarded over $3.5 million in scholarships since 2019, benefiting nearly 100 students from underrepresented backgrounds in finance and technology fields [1][2] - The scholarship program provides up to $20,000 per student, renewable for three years, aimed at supporting students in pursuing college degrees debt-free [1][2] - This year's recipients include students from various partner colleges, primarily from the University of Illinois system and DePaul University [2] Summary by Categories Scholarship Program - CME Group Foundation's scholarship program has distributed over $3.5 million to more than 100 students since its inception in 2019 [1][2] - Each awarded student can receive up to $20,000, which is renewable for three years [1][2] Partner Institutions - The scholarship program collaborates with 11 partner colleges and universities, including DePaul University, University of Illinois Chicago, and Stevens Institute of Technology [1][2] Career Development - CME Group executives will host a Day of Recognition and Market Education for scholarship recipients to explore internship and career opportunities in the financial services industry [1][2]

CHICAGO, Aug. 8, 2024 /PRNewswire/ -- CME Group Inc., the world's leading derivatives marketplace, today declared a third-quarter dividend of $1.15 per share. The dividend is payable September 25, 2024, to shareholders of record as of September 9, 2024. As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capt ...