CME - Intercontinental Exchange Faces Headwinds As The CME/ICE Grip On Futures Weakens

2024-05-14 13:19:04 ET

Summary

• Fenics Markets Xchange aka FMX poses a significant threat to the Chicago Mercantile Exchange, or CME, and Intercontinental Exchange, Inc. aka ICE in the futures markets.
• FMX has attracted investments from Citadel Securities, Goldman Sachs, and JPMorgan Chase, indicating potential success and increased competition for CME and ICE.
• The competition from FMX could lead to a price war, eroding earnings for CME and ICE and putting pressure on exchange fees and revenue sources.

The futures business has been booming for years, with volumes increasing and profits for the two leading exchanges, the Chicago Mercantile Exchange owned by CME Group Inc. ( CME ) and the Intercontinental Exchange, Inc. (ICE). The CME and ICE have had a virtual monopoly on the futures business that offers contracts on stocks and bond derivatives, commodities, currencies, and even Bitcoin....

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