UPDATE: JP Morgan Downgrades CME Group to Underweight on Falling Volumes

JP Morgan reduced its rating on CME Group

from Neutral to Underweight and reduced its price target from $56.50 to $54. JP Morgan said, "We see a disconnect between the fundamentals in CME's core business and the price appreciation and valuation of its stock. While we see the opportunities for both OTC clearing revenue and the migration to listed trading for interest rates, we feel that those opportunities could develop over a longer period of time, leaving investors to focus on the market-condition-driven deterioration in volumes. While a special dividend provides support to the stock, we see the potential for downside with limited upside over the next 6-12 months." CME Group closed at $59.35 on Thursday.