Why CME Group Needs to See Increased Bond Market Volatility

The past year has generally been good for market exchanges. However, CME Group's (NASDAQ: CME) stock performance has lagged the stock exchanges like Intercontinental Exchange (NYSE: ICE) and Nasdaq (NASDAQ: NDAQ). We have seen bull markets in stocks and bonds this year, so it would seem that CME would perform well. In fact, we have seen a tremendous bull market in bonds driven by Fed intervention in support of the economy. Yet instead of helping, it is actually hurting.

Why is that? 

CME Group houses the biggest derivatives exchanges in the world, including the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). It also owns the New York Mercantile Exchange (NYMEX) and the Commodities Exchange (COMEX). The group trades futures and options across almost all asset classes, including interest rates, equities, currencies, and commodities. The Group earns revenues from clearing and transaction fees, data, and connection fees. 

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Source Fool.com