In an attempt to facilitate trading of exchange-listed stock
futures and over-the-counter ("OTC") energy products on a single
Chicago Mercantile Exchange
) launched a new service called CME Direct. The brokers will not
have to switch between the exchange's Globex and Clearport systems
as the new technology will allow them to handle customer accounts
on one platform.
CME Direct will enhance client's exposure to the market as well
as offer increased access to global liquidity and price discovery
functionality. The new service seeks to blend the advantages of
electronic trading with the flexibility of voice brokering executed
through the participating brokers.
The services of the CME Direct technology are linked with CME
ClearPort for straight-through clearing to CME Clearing and CME
Clearing Europe and CME ConfirmHub for straight-through processing
("STP") to ensure a swift transaction.
The services have been specifically designed to allow CME
Group's energy futures markets to be traded along with OTC energy
swaps through brokers. This will include products traded on CME
Globex, NYMEX WTI crude oil, NYMEX Brent, DME Oman crude oil, RBOB
Gasoline, New York Heating Oil and Henry Hub Natural Gas futures
CME Direct is deemed to be an added feather in the company's
cap. Previously, the company has provided superior technology
services to resolve complex demands of the traders.
Following the launch of this service, we expect the company's
customer base to increase significantly, resulting in top-line
expansion. Moreover, we believe these services will provide
CME Group with a competitive edge over its peers -
NYSE Euronext, Inc.
The company currently retains a Zacks #4 Rank, which translates
into a short-term Sell rating. We also maintain a long-term Neutral
recommendation on the stock.
CME GROUP INC (CME): Free Stock Analysis Report
INTERCONTINENTL (ICE): Free Stock Analysis
NYSE EURONEXT (NYX): Free Stock Analysis Report
To read this article on Zacks.com click here.