Monday, May 09, 2005
Relevant to Barclays Interview with del Messier
CME's Donohue says market trends favor derivatives
Fri May 6, 2005 05:21 PM ET
CHICAGO, May 6 (Reuters) - Chicago Mercantile Exchange (CME.N: Quote, Profile, Research) Chief Executive Craig Donohue on Friday said that long-term trends, including the rise of hedge funds, favor growth in derivatives trading volumes.
Speaking at a business breakfast, Donohue noted a "significant shift" in asset management strategy away from passive equity holdings to trading-based returns involving alternative investments and asset classes.
"Futures and options have gone mainstream and are considered essential tools for today's portfolio managers, traders, investment bankers and corporate treasurers," Donohue said.
The CME, the largest U.S. futures exchange, traded more than 100 million futures and options contracts in April for the first time, with monthly volume up 47 percent on the year.
Asked about the CME's possible role in the current spate of U.S. exchange mergers, Donohue said any deal would have to create value for shareholders and would not be done merely because it seemed like "a good fit."
Donohue said the Federal Reserve's methodical implementation of monetary policy over the past year has benefited CME by fueling growth in Eurodollar futures, the world's busiest futures contract.
Meanwhile, the U.S. Treasury Department's suggestion that it could start issuing 30-year bonds in early 2006 after dropping them in 2001 would be "very, very positive" for the Chicago Board of Trade, the No. 2 U.S. futures mart, he said.
The CME processes derivatives trades for the CBOT, and would get more revenue from that clearing link if Board of Trade volumes grow.
CME shares were up 78 cents at $198.70 in mid-morning trading on the New York Stock Exchange.
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Fri May 6, 2005 05:21 PM ET
CHICAGO, May 6 (Reuters) - Chicago Mercantile Exchange (CME.N: Quote, Profile, Research) Chief Executive Craig Donohue on Friday said that long-term trends, including the rise of hedge funds, favor growth in derivatives trading volumes.
Speaking at a business breakfast, Donohue noted a "significant shift" in asset management strategy away from passive equity holdings to trading-based returns involving alternative investments and asset classes.
"Futures and options have gone mainstream and are considered essential tools for today's portfolio managers, traders, investment bankers and corporate treasurers," Donohue said.
The CME, the largest U.S. futures exchange, traded more than 100 million futures and options contracts in April for the first time, with monthly volume up 47 percent on the year.
Asked about the CME's possible role in the current spate of U.S. exchange mergers, Donohue said any deal would have to create value for shareholders and would not be done merely because it seemed like "a good fit."
Donohue said the Federal Reserve's methodical implementation of monetary policy over the past year has benefited CME by fueling growth in Eurodollar futures, the world's busiest futures contract.
Meanwhile, the U.S. Treasury Department's suggestion that it could start issuing 30-year bonds in early 2006 after dropping them in 2001 would be "very, very positive" for the Chicago Board of Trade, the No. 2 U.S. futures mart, he said.
The CME processes derivatives trades for the CBOT, and would get more revenue from that clearing link if Board of Trade volumes grow.
CME shares were up 78 cents at $198.70 in mid-morning trading on the New York Stock Exchange.
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# posted by Tom @ 9:08 AM 
