An Outperformer Rating For CME Group (CME)

A recent research report by analysts Howard Chen, Adam C. Eling and Ashley N. Serrao from Credit Suisse (ADR) (NYSE: CS) has expressed bullish signs on CME Group (NASDAQ: CME).

The company’s announcement that it has reached agreements with a group of leading broker-dealers to participate in its CDS clearing offering, has been taken very positively by Credit Suisse.

While successfully entering the OTC markets has never been an easy mandate for the exchanges, Credit Suisse views commitment from both the sell-side and buy-side community as an important factor in improving the odds of success for CME Group. Credit Suisse also expressed its bullishness owing to CME’s best-in-class clearing and risk management capabilities coupled with the launch of CDS Clearing.

While ICE has established a clear first-mover advantage in CDS clearing, Credit Suisse believes that the market opportunity is significant enough to support multiple offerings.