CME Group Executive: Prefer Partnerships To M&A For Global Expansion

CME Group Inc. (CME) prefers to forge global partnerships rather than acquisitions to expand its operations, a senior executive said Monday.

"The way we are approaching globalization is a little different from a global merger and acquisition strategy. We are actually pursuing a global partnership strategy," Kim Taylor, managing director and president, CME Clearing--a division of CME Group--said at a panel discussion on the competitive environment and expansion strategies for clearing houses.

The comments come after Chief Executive Craig Donohue last week said the international expansion of the company could see overseas trading of currency and energy futures grow to match the scale of its North American business.

The world's largest futures exchange drew 15% of its volume in the first quarter from outside U.S. trading hours--a proxy for overseas business--and the proportion in foreign exchange derivatives reached 34%.

Donohue had said currency contracts were the most likely to see an even split between domestic and overseas business, followed by metals, energy and commodity futures and options. Overseas trading has grown in all of CME's main product groups, with the contribution in equity derivatives doubling to 10% over the past two years.

-By Bijou George, Dow Jones Newswires; +91-9967586928; romit.guha@dowjones.com

CME (NASDAQ:CME)
Historical Stock Chart
From May 2024 to Jun 2024