As previously reported, BofA analyst Craig Siegenthaler downgraded CME Group to Underperform from Neutral with a price target of $177, down from $212, citing intensifying competition. CME now faces a battle on three fronts with BGC Partners (BGC), Cboe Global Markets (CBOE) and IntercontinentalExchange (ICE) and the competition could lead to market share losses and pricing headwinds, the analyst tells investors. BGC’s FMX Futures Exchange is scheduled to launch in weeks and the firm expects CME to cut its pricing in interest rate futures by 10%-plus as a defense, the analyst added.
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