CME Group downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded CME Group to Underweight from Neutral with a price target of $187, down from $206. FMX is entering the U.S. interest rate futures market in late summer and will compete with CME in its flagship futures contracts, the analyst tells investors in a research note. The firm sees FMX as a credible new entrant, saying it is aligned with a prominent set of partners, including some of CME’s biggest customers in rates trading. These FMX partners tell JPMorgan they are frustrated with CME’s behavior as a monopoly, including regular price increases and lack of product innovation, the analyst points out. It cites potential risk of a credible new entrant competing with CME in its core Interest rate franchise for the downgrade to Underweight.