Citi established a pair trade of overweight CME Group (CME), underweight Cboe Global Markets (CBOE). While both are levered to the higher-volatility backdrop Citi expects to see through year end, CME offers a better fundamental picture given its positive leverage to rates, equities and “compelling commodity story,” the analyst tells investors in a research note. Meanwhile, the firm says Cboe is reliant on its index franchise. Current volume trends are tracking above estimates for both, but there is more potential upward pressure to the consensus for CME versus Cboe presently, according to Citi. The firm keeps a Buy rating on CME with a $240 price target.
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