While $17 billion of lost market capitalization has cost CME Group Inc. the title of world’s most valuable exchange owner, its stock commands a valuation that would make buying Germany’s Deutsche Boerse AG a bargain.
The London Metal Exchange, founded 134 years ago above a hat shop in the financial district, may be the latest major mutual exchange to be bought after record trading volumes attracted the interest of multiple bidders.
Prime Minister Vladimir Putin has been calling for Russia, the world’s largest oil producer, to narrow the price gap between its Urals export crude and the Brent benchmark since 2005. A $1 billion terminal in Rotterdam may help achieve that goal.
CME Group Inc., NYSE Euronext and IntercontinentalExchange Inc. were among suitors for the London Metal Exchange to submit takeover offers before a deadline yesterday, said five people with direct knowledge of the matter.
The Federal Reserve Bank of New York is pressing for competition in clearing credit-default swaps to ensure that the market has alternatives to Intercontinental Exchange Inc., the only clearinghouse to guarantee trades.
A U.S. House committee’s proposal to change how private derivatives are bought and sold won’t make the financial system more stable and may shift profits to exchanges from banks, analysts and a former regulator said.