CME Doesn't Believe In 'Supermarket' Exchange Model

The chief executive of CME Group Inc. (CME) said Thursday that the futures market giant sees little value in building a portfolio of markets that span asset classes, a strategy currently being pursued by two of its biggest rivals.

"We were never a big believer in a 'supermarket' of exchanges," said Craig Donohue, CME's CEO, speaking to investors at an event hosted by Sanford Bernstein & Co.

Donohue reiterated CME's preference for growing trade in its core futures and options business, as well as services for off-exchange derivatives trading, as the world's largest futures exchange operator sits out a wave of consolidation.

Deutsche Boerse AG (DBOEF, DB1.XE) and NYSE Euronext (NYX) are pursing an agreed-upon merger deal that will combine the two companies' futures, equities and options exchanges into what would be the biggest exchange group in the world.

Executives of both companies have touted the diverse range of products and services traded, making trade more efficient for big clients and positioning the merged entity as an attractive partner for fast-growing Asian markets.

Donohue on Thursday said the CME had determined that the increasing sophistication of customers trading multiple asset classes made it less attractive for CME to develop offerings outside its core futures business.

"We felt that technology had obviated the value of putting cash equities, futures and options markets together on the same platform," he said.

-By Jacob Bunge, Dow Jones Newswires; 312-750-4117; jacob.bunge@dowjones.com

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