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

Reuters · 09/03 14:40

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

** 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 '' on worries of market share losses and pricing headwinds; cuts price objective to $177 from $212

** Brokerage says CME 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))

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