CME Group Inc
F:MX4A
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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C
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Co-Tech Development Corp
TPEX:8358
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TW |
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Mediobanca Banca di Credito Finanziario SpA
SWB:ME9
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Mediobanca Banca di Credito Finanziario SpA
OTC:MDIBY
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IT |
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Serrano 61 Desarrollo SOCIMI SA
MAD:YSRR
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ES |
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O
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Omni-Lite Industries Canada Inc
OTC:OLNCF
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U
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UBS Group AG
SWB:0UB
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CH |
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Omni-Lite Industries Canada Inc
XTSX:OML
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W
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West Fraser Timber Co Ltd
XMUN:WFC
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Arca Continental SAB de CV
OTC:EMBVF
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Berkshire Hathaway Inc
MIL:1BRK
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Eurofins Scientific SE
PAR:ERF
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LU |
Economic Moat
CME Group has a wide economic moat
Traders benefit from gathering in CME's markets because more buyers and sellers make it easier to trade at competitive prices, which attracts still more participants. Keeping related trades together can also reduce the money customers must set aside, while exclusive index licenses prevent rivals from copying certain contracts. Together, these advantages make competing exchanges difficult substitutes.
What protects CME Group from competitors
Network Effects
Each additional buyer or seller in CME's established futures markets gives other traders more opportunities to find a matching order at a competitive price. A rival with fewer participants cannot easily offer the same trading conditions, even with lower fees.
High Switching Costs
CME allows eligible related futures, options and interest rate swaps to share the money set aside to cover potential losses. Moving only part of that trading elsewhere can sacrifice these savings, making a cheaper rival more expensive overall.
Intangible Assets
Exclusive licenses for certain S&P, Nasdaq, Dow Jones and FTSE Russell index futures prevent competing exchanges from offering identical licensed contracts. Rivals must attract customers to alternatives rather than simply copy those products.
What could weaken CME Group's moat
3 risks to watch
One for each source of the moat: what could happen and how it would weaken it
Peer Comparison
3 of 6 peers have a wide moat.
Intercontinental Exchange ICE
Wide
Network Effects, High Switching Costs, Intangible Assets
S&P Global SPGI
Wide
Network Effects, High Switching Costs, Intangible Assets
Moody's MCO
Wide
High Switching Costs, Intangible Assets
Hong Kong Exchanges and Clearing 388
Narrow
Network Effects, Intangible Assets
London Stock Exchange Group LSEG
No Moat
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Deutsche Boerse DB1
No Moat
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