Chicago Mercantile Exchange (NYSE:CME) is a very interesting company. They basically dominate the U.S. futures markets. There are other futures exchanges in the U.S., but the CME is the big player, along with the Chicago Board Options Exchange and the ICE.
What we’re looking for with CME is we think the anxiety traders – ourselves included – have had about the potential for a decline is actually going to play in CME’s favor and we’re really surprised at how much they’ve been discounted already. This is really unusual because CME, as a futures exchange, should be benefiting from several things going on in the market – no. 1, trade activity around hedging our way through this downturn.
There’s a lot of activity right now as traders try to position themselves around, “Is it a market top? Is it not a market top? Is a market top?” and so forth. There’s a lot more trading activity going on than usual, so that plays in their favor.
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