CME falls as BofA downgrades to 'underperform' on competition concerns

Bgc

03/09/2024 15:40

** Shares of derivatives exchange operator CME Group  CME.O 
fall ~2.2% to $211.08 in morning trading 
    ** Bank of America Global Research downgrades CME to
'underperform' from 'neutral' on worries of market share losses
and pricing headwinds; cuts price objective to $177 from $212 
    ** Brokerage says CME now faces a 3-front battle with BGC
Partners  BGC.O , Cboe Global Markets1  CBOE.Z  and
Intercontinental Exchange  ICE.N  for market share 
    ** "BGC's FMX Futures Exchange is scheduled to launch within
weeks, and we expect CME to cut its pricing in interest rate
futures by 10%+ as a defensive maneuver" - BofA
    ** Brokerage adds it expects CBOE's options will
increasingly be used as a substitute for CME's equity futures,
while ICE will continue to take share in energy futures
    ** Including session's loss, CME stock flat YTD 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))