CME Reports 15% Decline In 3Q

JP Morgan has published a research report for CME Group, Inc.

reporting on September volumes and August results. In the report, JP Morgan writes "CME generated overall q-o-q volume decline of 15% in 3Q10, with particular weakness in equities (19%), interest rates (17%), and FX (16%) products. The increase in September trading was not enough to offset the drop in July, most visible in CME's equity platform. That said, open interest in CME's legacy businesses is up 18% y-o-y in 3Q10 following double-digit increases of 23% in 2Q10 and 15% in 1Q10. Accordingly, we continue to see the volume growth trend as being positive even though near-term velocity fell during the quarter." JP Morgan maintains its Overweight rating but has raised the price target from $370 to $372.50. CME Group closed yesterday at $259.90.