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CME Group appeals to investors who believe in the resilience of centralized, regulated derivatives marketplaces across rates, equities and crypto. The key near term catalyst is continued product innovation around high-volume asset classes, while the biggest risk remains a regulatory shift that could restrict derivatives participation or make alternative venues more attractive. The launch of Spot-Quoted XRP and Solana futures looks incremental to this thesis rather than a material near term swing factor.
Among recent developments, the CFTC’s approval of expanded cross-margining for US Treasuries stands out alongside the new crypto futures. By allowing certain customers to offset margin between CME-cleared Treasury futures and cash Treasuries elsewhere, it reinforces CME’s role at the core of fixed income risk management, which may matter more to overall volumes and earnings resilience than any single crypto product launch.
Yet against this backdrop of innovation, investors still need to be aware of how quickly new trading venues and DeFi structures could...
Read the full narrative on CME Group (it's free!)
CME Group's narrative projects $7.3 billion revenue and $4.3 billion earnings by 2028. This implies 4.4% yearly revenue growth and an earnings increase of about $0.6 billion from $3.7 billion today.
Uncover how CME Group's forecasts yield a $286.13 fair value, a 5% upside to its current price.
Five members of the Simply Wall St Community currently estimate CME’s fair value between US$199.07 and US$286.13, underscoring how far individual views can diverge. As you weigh those opinions against CME’s growing product suite and regulatory developments, it helps to compare several perspectives before deciding how that could affect the company’s long term earnings power.
Explore 5 other fair value estimates on CME Group - why the stock might be worth 27% less than the current price!
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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