We have previously examined the Dodd-Frank rulings with respect to CME in our article CME Group 10% Upside Potential on New Derivatives Rules.
Trade Exchange's EBOT would be a competitor to this CME trading post in certain products.
However, when CME breached it in mid-June it has been lower prices ever since.
Traders could use this as a rough gauge of profit potential in CME.
Jason Britt, president of brokerage firm Central States Commodities, called it "a step in the right direction" and believed the CME could recoup any cost in extra volume if confidence among clients improves.
He even suggested to the vice-Chairman of the CME that he could argue in front of the court that the judge grant a lien to CME on the MF Global holding company assets if the exchange were to put up a temporary fund to make MF customers whole.
FORBES: Benzinga Talks to MF Global Customer Counsel James Koutoulas
Keep in mind that so far the CME Group has raised margins only once so far in gold, but did so several times in silver.
FORBES: METALS OUTLOOK: Weaker Trade Possible In Gold If Financial Markets Stabilize
We estimate that, along with Wall Street reforms, a shift to algorithmic and electronic trading will fuel growth in the average daily trading volume of energy contracts at CME from about 1.7 million in 2010 to 3.7 million by 2017.
In January 2011 CME Group launched weekly Treasury options, which saw a positive reception from customers.
FORBES: Rising Volume Tied To Interest Rates Is Good For CME Group
Margin requirements in the spotlight this week again after the CME Group, owner of futures exchange NYMEX, announced a 25% hike in collateral requirements for crude oil futures, putting initial, and short-lived, pressure on WTI and Brent prices.
CME's little local difficulty in Prague could not have flared up at a trickier time.
As the new rules are implemented, derivatives exchanges like CME should benefit from the increase in trading volumes.
CME, the biggest television company in Central and Eastern Europe.
When banks melted down in the credit crisis, CME Group trumpeted its markets as transparent and stable.
FORBES: Anger Builds Over MF Global Mess - And Spells Trouble
"The market believes the CME is going to capture some share in a big and growth market that it hasn't been able to participate in, " Lane said.
The gold market saw strong early selling pressure Thursday in the wake of the CME Group late Wednesday announcing it will raise futures margins on gold by 27%.
FORBES: Comex Gold Ends Firmer, Near Daily High, Which Gives Bulls Some Encouragement
The CME Group hiked margin requirements four times in two weeks in silver, mandating that people who wanted to trade it needed to post a greater amount of collateral than before.
FORBES: METALS OUTLOOK: Gold Could Stabilize Next Week, But Analysts Cautious
We forecast the average daily volume of energy contracts traded on CME to reach 3.7 million in the coming years from its current level of 1.7 million, implying a growth rate of around 12% annually.
FORBES: CME Can Catch A Bid To $342 With More Energy and Interest Rate Trading
As a broker-dealer, MF Global also added liquidity to the system, adding another layer of systemic risk: on Monday, MF Global traders were barred from the CME Trading floor, substantially limiting liquidity in futures markets.
FORBES: Client Cash Reportedly Missing At MF Global; Debacle May Underline Case For Volcker Rule
In December, Lukken foresaw increased competition in the portfolio margining process from CME.
FORBES: NYPC Cleared For Q1 Launch, Ready For A Dogfight With CME
With that in mind, consider shares of CME Group (CME).
FORBES: CME Group Pays You Well To Wait For The Next Big Move
In March, I called for the CME to use its power to take the air out of the oil bubble.
The Chicago Merc is part of CME Group, the biggest futures-exchange operator in the U.S., handling an average of 12.5 million contracts a day.
This move signals that the CME believes there is too much speculation going on in the commodities markets and it wants to burst the bubble.
FORBES: As Predicted in December, Commodity Bubble is Popping
Additionally a CME and NYSE merger would also keep the focus in the U.S. when much of the growth opportunity lies in international markets such as Brazil, India and China.
FORBES: CME Group Shows Restraint By Not Launching NYSE Bidding War With Deutsche Boerse
The CME Group, which owns the exchanges, has contingency plans in case of weather-related damages.
FORBES: METALS OUTLOOK: Gold Prices To Stabilize Next Week After Recent Break
The CME hiked gold marging requirements on Aug. 11 as investors piled in to gold futures as a safe haven.
In September, the Chicago Mercantile Exchange set up its CME Alternative Marketplace, which is an auction site for trading economic indicators.
Market chatter has centered on the CME decision as an attempt to force speculators out of the market in an attempt to quell market volatility.
News the CME Group again raised its margin requirements for gold also prompted long liquidation in the futures market.
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