What Does the Fed Interest Rate Hike Mean for CME Group?
Usually, a bear market is bad news for an exchange. When an asset class is rising in price, investors chase that performance, which increases trading volume. The reverse tends to happen when stock prices fall as a class of investors stays away from the markets.
There is a twist, however, when an asset has some natural constraints. Ironically, a bond bear market might be the best news for CME Group (NASDAQ: CME), the dominant player in interest rate derivatives. Let me explain.
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Source Fool.com
