CME Group does not want to go private "at this time," CEO says

CHICAGO Wed Feb 13, 2013 5:04am IST

Phupinder Gill, the chief executive of CME Group Inc., speaks during the Sandler O'Neill + Partners, L.P. global exchange and brokerage conference in New York June 8, 2012. REUTERS/Lucas Jackson

Phupinder Gill, the chief executive of CME Group Inc., speaks during the Sandler O'Neill + Partners, L.P. global exchange and brokerage conference in New York June 8, 2012.

Credit: Reuters/Lucas Jackson

Stocks

   

CHICAGO (Reuters) - CME Group's (CME.O) chief executive on Tuesday shot down the possibility that the giant futures exchange operator will go private any time soon, a day after it was revealed that Nasdaq OMX Group (NDAQ.O) had discussed such a move.

Phupinder Gill, who took the reins at CME in May, told investors at a Credit Suisse conference in Miami that he did not see "the advantage of going private at this time."

CME, which owns the 165-year-old Chicago Board of Trade and offers trading on assets from oil to interest rates, would not be more flexible if it was privately held, Gill said, noting the exchange operator would still be regulated by agencies like the Commodity Futures Trading Commission.

CME shares began trading publicly in 2002.

Private equity firm Carlyle Group (CG.O) recently approached Nasdaq about taking Nasdaq private, but the talks fell apart over a disagreement on price, sources familiar with the deal said on Monday.

Exchanges have been under pressure from declining trading volumes and low market volatility.

CME last week reported that fourth-quarter profits fell sharply from a year ago as trading sagged, a decline Wall Street had anticipated given muted volatility and the U.S. Federal Reserve's renewed commitment to low U.S. interest rates.

Gill said on Tuesday that there is an "intense debate" within CME over whether to charge customers more for clearing services, a move that could help compensate for sagging volumes.

Fees are appropriate at this point, he said, adding that CME will adjustment them as necessary.

(Reporting By Tom Polansek; editing by Jim Marshall)

Reuters Showcase

GDP Growth

GDP Growth

India revises up 2013/14 GDP growth to 6.9 percent.  Full Article 

Adani Restructuring

Adani Restructuring

Adani hives off power, ports businesses to boost growth.  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

ICICI Results

ICICI Results

ICICI sets quarterly record profit as Q3 net rises 14 pct  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage