CME GROUP (CME) Stocks
ABOUT CME GROUP
? CME Group Inc. Class A (Chicago Mercantile Exchange & Chicago Board of Trade), a global markets company, was incorporated in August, 2001, and has its headquarters in Chicago, Illinois, in the United States. It is the world’s biggest and most diverse derivatives marketplace. The corporation was formed by the merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). Soon after the merger, it also bought the New York Mercantile Exchange.
The company owns these large derivatives, options and future exchanges in Chicago and New York City, which it operates through its CME trading platforms. It offers products across all assets classes, such as futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals for its clients to purchase.
CME Group brings together buyers and sellers of derivatives products on its trading floors, electronic platform, and through the clearing op privately negotiated transactions. CME Group’s products and services ensure that businesses worldwide can effectively manage risk and achieve growth.
The Economist describes the CME Group Inc. as “The biggest financial exchange you have never heard of”.
The company’s business platforms primarily consist of the Chicago Mercantile Exchange Inc. (CME), Board of Trade of the City of Chicago, Inc. (CBOT), New York Mercantile Exchange, Inc. (NYMEX) and Commodity Exchange, Inc. (COMEX) exchanges. Today, CME Group Inc. employs approximately 3 000 people across its operations.
OVERVIEW OF CME GROUP
- The company’s clearing houses, CME Clearing and CME Clearing Europe, offer clearing and settlement services for exchange-traded and over-the-counter derivatives.
- CME Clearing marks open positions to market twice daily, and requires payment from clearing firms whose positions have lost value. It also makes payments to clearing firms whose positions have gained value. Block transactions and swaps get access to the company’s clearing service through the CME ClearPort front-end system.
- The company’s CME Globex electronic platform is the trading engine for its central limit- order book markets, and is available globally throughout the trading week, 24/7. This platform can be accessed via a range of vender-provided and custom-built trading systems through its open-application programming interface approach.
- Brokers and customers can arrange, execute, and risk-manage trades through the CDM Direct platform. CME Direct comprises of CME One for mobile access, CME Messenger for instant-message capabilities and CME Straight-Through Processing. The latter enables direct connectivity for trade information with customer order management and risk-management systems.
- CME Direct also offers a portfolio of market data services such as live quotes, delayed quotes and market reports, as well as a historical data service. Its products enable hedging, speculation as asset allocation for risks associate with, amongst others, interest rate sensitive instrument, equity ownership, credit risk and changes in the prices of agricultural, energy and metal commodities, as well as changes in the value of foreign currency.
VALUES OF CME GROUP
- The CME Group’s value set guides the way in which the company does business, serves its clients, and conducts itself every day.
- The company leads with conviction and integrity, always choosing lasting value over short-term gain. It strives for excellence, and empowers its workforce to deliver on commitments to each other and its customers.
- CME Group is passionate about helping its clients to manage risk through the company’s risk management programmes, so as to help global businesses advance. It always perceives the world from its customers’ perspective, and earns their trust through open communication and the creation of opportunities to help them grow their businesses.
- The company champions innovation and pushes itself to take calculated risks every day. It anticipates its clientele’s needs and move quickly to deliver solutions.
MARKET PERFORMANCE OF CME GROUP
- CME Group Inc. Class A trades on the New York Stock Exchange (NYSE) under the stock symbol “CME”.
- The company’s solid financial performance boosts investor confidence.
- In 2018, it recorded revenue of USUS Dollar 4.3 billion and net income of USUS Dollar 385.5 million. Shareholders, who buy or sell company shares, can therefore expect sound dividends and returns.
LATEST NEWS CME GROUP
Buy CME GROUP stocks / shares – A Step by Step Guide how to Buy / Purchase CME GROUP Stocks or Shares online.
Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy CME GROUP Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN CME GROUP STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a US Dollar 5 stock, multiply 100 by US Dollar 5 to get US Dollar 500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE CME GROUP STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of CME GROUP stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy CME GROUP stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?