Many investors should be familiar with the CME Group (CME) brand simply through regular trading. The company is behind the Chicago Mercantile Exchange that specializes in futures and commodities, and now owns the Dow Jones Indices after a big acquisition a few years ago.
Thanks to the high barrier of entry to any competitors establishing their own futures exchange and passing muster with regulators, CME is very entrenched — especially after the recent BATS disaster in spring 2012.
As economic activity mildly improves and investors start to get “risk on,” activity will heat up on the CME and so will profits for the company. At least, that’s the logic behind the big run-up in 2013 for CME stock.