Thursday, November 8, 2007

International operations to drive CME revenue

From Reuters:

Revenue from trading products in countries like Brazil, South Korea, China, Mexico and India will account for an increasing and significant portion of total revenue for CME Group Inc, as the world's largest futures exchange embarks on a bullish global expansion strategy, Chief Executive Craig Donohue said in an interview on Thursday.

Although the global derivatives market is still in its early stages, emerging markets will become active users of sophisticated trading products within the next five to 10 years, Donohue said on the sidelines of the Securities Industry and Financial Markets Association's annual meeting here.

Donohue said he sees CME's recent purchase of 10 percent of Brazil's BM&F, the world's fourth largest futures exchange, adding to revenue in the "immediate to near term."

CME hopes to develop new trading products in agricultural commodities and carbon trading, among others, as part of its agreement with BM&F....MORE