Deutsche Bank's Exchange Report

Deutsche Bank has published a research report on the Exchanges following decent 3Q volumes, but still maintains a mixed outlook.

In the report, Deutsche Bank writes "Volumes across all asset classes saw significant declines in the quarter leading to top line pressure across the exchange sector. That being said, all exchanges were able to meet or beat reduced expectations, due in part to improved pricing (across most products due to the lack of tiers/caps), FX tailwinds, better non-transaction revenues, well managed expenses, and for some, better than expected tax rates and/or buybacks. Overall volumes, with the exception of U.S. options (which are up over 20% q/q), have picked up slightly thus far in 4Q (though Euro futures have declined), but for the most part remain relatively subdued. While improving macro trends and regulatory transparency should eventually drive volumes longer term, increased regulation will likely limit significant upside in cash and option volumes, while futures will likely continue to benefit as the OTC markets transform. We favor CME (Buy rated), due to low expectations, valuation, most upside to normalized volumes (rates), & new growth opportunities (OTC and international)."

Companies related to this report include:

NYSE Euronext (NYSE: NYX),$30.34, Hold
NASDAQ OMX (NASDAQ: NDAQ),$22.20, Hold
CME Group (NASDAQ: CME),$295.82, Buy
Intercontinental Exchange (NYSE: ICE),$117.33, Hold
CBOE Holdings (NASDAQ: CBOE),$24.87. Hold
MF Global (NYSE: MF),$8.23, Hold