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CME Group Inc.
Intercontinental Exchange, Inc.
Thomson Reuters Corporation
Interactive Brokers Group, Inc.
MarketAxess Holdings Inc.
Cboe Global Markets, Inc.
Virtu Financial, Inc.
BGC Partners, Inc.
In the recent series of record highs, the S&P 500 crossed the 3,100 level for the first time ever. We have highlighted 10 best performing stocks in ETF that tracks this index.
(Bloomberg) -- CME Group Inc. plans to start Brazilian soybean futures with the country’s B3 exchange, giving traders a new hedging tool as the U.S.-China trade war disrupts the global flow of beans, people familiar with the matter said.The contract for soybeans loaded at the port of Santos, Brazil’s biggest, would be cash-settled, according to the people, who asked not to be identified because the plan hasn’t been announced. Futures will be based on assessments by a price-reporting agency, most likely S&P Global Platts, the people said.Brazil has become a powerhouse in soybeans and overtook the U.S. as the top exporter in the 2012-13 season. Its dominance grew in the past year as the U.S.-China trade spat prompted Chinese buyers to turn to Brazilian supplies. Price dislocations have also boosted the need for new hedging tools as benchmark futures traded in Chicago are for beans delivered in the U.S.Both B3 and CME declined to comment.CME, which also owns benchmark futures for corn and wheat, had previously confirmed it was considering starting a Brazilian soybean contract. In May, Chief Executive Officer Terry Duffy said the bourse was working on developing risk-management tools for the Brazilian market and that he wanted to ensure changes in trade flows didn’t skew prices.The soybean contract would extend CME’s suite of cash-settled products, which also include Black Sea wheat, corn and Ukrainian sunflower oil. Cash-settled contracts are gaining popularity as agriculture follows the path of energy markets, where thousands of contracts are already based on assessments from price-reporting agencies.\--With assistance from Fabiana Batista and James Attwood.To contact the reporters on this story: Isis Almeida in Chicago at firstname.lastname@example.org;Megan Durisin in London at email@example.comTo contact the editors responsible for this story: Tina Davis at firstname.lastname@example.org, Nicholas Larkin, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- CME Group Inc. shed light on what could happen to the exchange giant’s most-traded contracts -- eurodollars, which permit bets on interest rates -- if the scandal-plagued Libor benchmark they’re tied to goes away in two years.Officials at CME on Tuesday proposed a methodology for converting eurodollar futures and options to other derivatives at the exchange, ones linked to an alternative benchmark called the Secured Overnight Financing Rate, or SOFR. The plan could be tweaked based on customer feedback.The U.K. regulator that oversees Libor, the Financial Conduct Authority, will stop compelling banks to submit data used to calculate Libor in 2021. CME Chief Executive Officer Terry Duffy said in an October interview that the benchmark isn’t guaranteed to go away then. But Libor is so deeply embedded in the global financial system that even a slim chance it disappears means contingency planning is necessary.CME officials Sunil Cutinho and Agha Mirza said on a Tuesday webinar what would happen if there’s a “fallback trigger,” meaning the FCA or ICE Benchmark Administration, the company that maintains Libor, says the index won’t be provided anymore. In that case, eurodollar futures would be turned into SOFR futures, converted to the same month’s expiration at a price determined by the pre-fallback eurodollar price plus a spread adjustment.Eurodollar options would continue to be listed because converting them “would result in non-standard strike prices different to the standard listed strike prices” for SOFR options, Cutinho said. However, upon exercise, the resulting “synthetic” eurodollar futures contract would convert immediately into a corresponding SOFR futures contract.“Without a fallback trigger, the eurodollar complex will remain unchanged,” Mirza said. “Eurodollar futures and options remain deeply liquid and continue to grow year after year.”The stakes are high for CME, given that eurodollar futures are the most-traded interest-rate derivatives tracked by the Futures Industry Association. Almost 380 million of them changed hands during the first half of the year, according to the trade group. Libor is currently used to settle $67 trillion in listed products including eurodollar futures and options, Cutinho said.CME plans to offer customers support in converting their eurodollar options to SOFR options, which are slated to debut on Jan. 6, Cutinho and Mirza said. Also, in the event of a fallback trigger, CME would immediately create new contracts to fill in any gaps where there are eurodollar expirations but not corresponding ones for SOFR.CME’s proposed methodology aligns with the International Swaps and Derivatives Association’s proposed methodology for settling swaps in the event that Libor production ceases, exchange officials said.To contact the reporter on this story: Elizabeth Stanton in New York at email@example.comTo contact the editors responsible for this story: Benjamin Purvis at firstname.lastname@example.org, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Energy exchange EEX Group said on Tuesday it had agreed with U.S.-based Nasdaq Futures (NFX) to buy NFX's futures and options exchange business as it continued to expand its presence in U.S. energy markets and in sea-borne commodities. Under the deal, EEX, part of Deutsche Boerse, would receive NFX' core assets, it said in a statement.
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(Bloomberg) -- Oil-rich Abu Dhabi plans next year to start a commodities exchange to offer trading in the emirate’s first crude futures contract.The platform will be based in Abu Dhabi’s financial district and operated by Intercontinental Exchange Inc., according to people with knowledge of the situation. Atlanta-based ICE will be the majority owner, with Abu Dhabi National Oil Co. and several European and Asian oil companies and traders taking minority stakes, the people said, asking not to be identified because the information isn’t public.Media officials for ICE and government-run Adnoc declined to comment.Although oil producers across the Persian Gulf pump about a fifth of the world’s oil, they have never had a region-wide, exchange-traded crude benchmark. Adnoc wants the new futures contract for its flagship Murban crude to eventually serve that function.Futures trading “is going to capture more value” from the sales, U.A.E. Energy Minister Suhail Al-Mazrouei said Wednesday. Abu Dhabi’s production and reserves are large enough to support Murban as a benchmark, though “we will wait and see” whether regional producers adopt the contract as a basis for pricing, he told reporters.Adnoc confirmed this week that it would offer futures in its Murban grade during the second or third quarter of 2020, without specifying where the contract would be listed. Murban is Adnoc’s most plentiful grade, at about 1.7 million barrels a day, and accounts for more than half of the crude pumped in the United Arab Emirates. Abu Dhabi holds most of the oil in the U.A.E., the third-largest producer in the Organization of Petroleum Exporting Countries.Abu Dhabi won’t be the first regional producer to offer futures contracts for its crude. Oman and the neighboring U.A.E. emirate of Dubai joined with CME Group Inc. in 2007 to start the Dubai Mercantile Exchange to trade Omani crude futures. Oman, Dubai and Saudi Arabia are the only producers in the Gulf to price off the contract; most of the others base their monthly crude pricing on the Dubai and Oman crude price assessments by S&P Global Inc.’s Platts.Murban is lighter and contains less sulfur than most Middle Eastern crudes, making it easier to refine. It generally fetches higher prices on global markets and is similar in quality to Brent crude, the global benchmark. Brent crude futures are traded on the London-based ICE Futures Europe Exchange.\--With assistance from Mahmoud Habboush.To contact the reporter on this story: Anthony DiPaola in Dubai at email@example.comTo contact the editors responsible for this story: Nayla Razzouk at firstname.lastname@example.org, Bruce StanleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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Rick McVey has been the CEO of MarketAxess Holdings Inc. (NASDAQ:MKTX) since 2000. This analysis aims first to...
Virtu Financial (VIRT) delivered earnings and revenue surprises of -4.55% and 0.44%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?