Latest news with #ChicagoMercantileExchange
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
CME Earnings Surge on Volatility, Increased Trading
CME Group's CME -0.13%decrease; red down pointing triangle second-quarter earnings and revenue rose sharply as the derivatives-exchange operator benefited from a surge in trading activity due to market volatility. The Chicago firm, which hosts trading of commodity futures and other derivatives on the Chicago Mercantile Exchange and elsewhere, on Wednesday posted earnings of $1.03 billion, or $2.81 a share, up from $872.1 million, or $2.42 a share, a year earlier.
Arabian Post
17-07-2025
- Business
- Arabian Post
CME Refuses to Develop Memecoin Derivatives
The Chicago Mercantile Exchange has made a definitive statement against creating derivatives linked to memecoins, asserting that the tokens do not possess inherent value or utility. This decision comes amid growing interest in digital currencies and the increased popularity of cryptocurrencies, which has sparked debates over the legitimacy and long-term viability of memecoins. CME, a prominent player in the derivatives market, has expressed concern that while the meme-based digital currencies have attracted significant attention, they fail to meet the criteria required for listing on traditional financial markets. Their stance underscores a broader caution within institutional financial circles regarding the speculative nature of memecoins. CME's focus remains on assets with clearer, more defined purposes, distancing itself from assets that could be perceived as largely driven by speculation and hype. Memecoins, such as Dogecoin and Shiba Inu, have surged in popularity, largely driven by social media trends and celebrity endorsements. These coins, often launched with minimal technical backing or distinct use cases, have raised questions among regulators and traditional financial institutions about their sustainability. While some investors have profited from these speculative assets, others argue that their volatility and lack of utility make them unsuitable for the establishment of regulated financial products. ADVERTISEMENT CME's decision to avoid memecoin derivatives highlights the ongoing tension between traditional financial institutions and the emerging cryptocurrency market. Many institutional investors and financial services firms have taken a cautious approach toward digital assets, particularly those without a clear underlying economic purpose. Unlike Bitcoin or Ethereum, which have garnered institutional support due to their use cases in decentralized finance and blockchain technology, memecoins continue to be seen as speculative and unpredictable investments. The CME, which is known for offering a wide range of financial products, has historically been careful about embracing digital assets. While the exchange has launched products for Bitcoin and Ether futures, it has been much more reserved in its approach to other forms of cryptocurrency. This stance reflects a broader hesitancy within traditional finance to integrate speculative digital assets into the established financial ecosystem. Despite the speculative frenzy surrounding memecoins, their adoption among mainstream financial institutions has been slow. Critics argue that memecoins present significant risks due to their volatility and lack of regulatory oversight. With the absence of tangible utility or real-world applications, the long-term viability of these coins remains uncertain. However, the rapid rise in their value and their appeal to retail investors suggest that the digital asset market is evolving in ways that many traditional institutions struggle to fully grasp. Meanwhile, the debate surrounding memecoins is far from settled. Some proponents argue that memecoins serve as an entry point into the broader cryptocurrency ecosystem, particularly for newcomers who may be drawn to the coins' viral and community-driven nature. These supporters contend that the social aspect of memecoins, driven by online communities and internet culture, is a valuable phenomenon in itself. The connection between digital assets and social influence is undeniable, as evidenced by the involvement of high-profile figures such as Elon Musk in promoting Dogecoin.
Chicago Tribune
16-07-2025
- Business
- Chicago Tribune
Benjamin Van Vliet: The US and Illinois need market clarity on crypto
Chicago is home to three of the world's most important exchanges — the Chicago Mercantile Exchange (CME), Chicago Board Options Exchange (CBOE) and Chicago Board of Trade (CBOT) — and has built a global reputation as a leader in financial innovation. Today, however, that reputation is in danger of slipping as the next generation of financial technology — digital assets — evolves (largely) outside our state. To be sure, Chicago has formed solid roots in digital assets, including blockchain, cryptocurrency and Web 3.0, but not in the world-leading way it has with past innovations like financial futures, options trading and high frequency liquidity provision. We have all the ingredients to lead in this next era — the talent, technology, experience and capital. We know how to build and run the world's best, most advanced financial markets. Already, more than 300 blockchain and crypto-related startups call Illinois home, and digital assets startups have attracted more than $1.5 billion in venture capital investment. Chicago is a place where crypto could thrive. But there's an obstacle — a big one — blocking Chicago's progress and jeopardizing our leadership on the global financial stage: Congress has yet to provide clear and coherent regulatory guidance for the digital assets industry. As a fintech professor and longtime observer of financial markets, I believe in the potential for digital finance to power the global economy. Cryptocurrency, stablecoins and blockchain-based tokens represent a fundamentally new kind of finance. Unlike traditional banking systems that rely on centralized intermediaries, these technologies enable peer-to-peer transactions, smart contracts and decentralized recordkeeping, often with greater speed, enhanced transparency and lower costs. Blockchain technologies have already begun to make the global financial system more transparent, more efficient and more accessible, and they hold the potential to better serve communities that traditional banking has left behind. But innovation cannot thrive without regulation, and the persistent lack of regulatory clarity is stifling innovation. Entrepreneurs are left guessing which rules apply and which regulator might show up at their door, while consumers are more vulnerable to fraudulent activity by bad actors overseas. The United States (and Chicago) is less attractive to major financial institutions, startups and trading firms innovating in digital finance. The aptly named CLARITY Act moving through the U.S. House of Representatives is a chance to change that. It is the single most important piece of legislation the digital asset industry has seen, providing a comprehensive framework for the industry and protecting consumers without unduly compromising innovation. One of the bill's key strengths is that it helps define how digital assets should be regulated. Not all cryptocurrencies function the same; some resemble traditional securities, while others function as commodities. CLARITY introduces much-needed coordination between the Securities and Exchange Commission, which traditionally oversees stocks and investment products, and the Commodity Futures Trading Commission (CFTC), which regulates commodities and derivatives — stabilizing the environment for continued innovation. Importantly, CLARITY would also enable federal enforcement against illicit uses of crypto — such as money laundering and the financing of terrorism — by establishing robust know-your-customer and anti-money laundering protections within a transparent regulatory framework, which would protect consumers and foster trust in this promising industry. Editorial: Crypto has a friend — or is it a frenemy? — in Donald TrumpIn the absence of regulatory clarity, crypto companies are increasingly choosing friendlier jurisdictions — Dubai, Switzerland, Toronto and London. Companies that may prefer to return their operations to the United States are waiting on the sidelines, afraid of being penalized for not knowing the rules of the road in the U.S. That ends with the CLARITY Act. Passing the CLARITY Act would send a strong message: that the United States intends to lead in blockchain and cryptocurrency. That we support entrepreneurs willing to take risks and consumers who deserve protection. That we're ready to write the next chapter of American financial leadership. With the right policy in Washington, D.C., much of that chapter can be written right here in Chicago. I urge members of Illinois' congressional delegation to act decisively by supporting the CLARITY Act and building a solid framework for the next generation of finance to thrive in Illinois.
Hindustan Times
07-07-2025
- Business
- Hindustan Times
CME feeder cattle reach new high on limited US supply
By Tom Polansek CME feeder cattle reach new high on limited US supply CHICAGO, - Chicago Mercantile Exchange feeder cattle futures reached new highs on Monday, while live cattle finished stronger on concerns over limited U.S. supplies, analysts said. Although Washington began to resume cattle imports from Mexico, inventories remain tight and demand for beef from consumers is solid, they said. CME August feeder cattle futures finished up 4.225 cents at 313.725 cents per pound. August live cattle ended 1.85 cents higher at 215.900 cents per pound. Futures prices looked low compared with cash prices that traded last week, a trader said. CME feeder cattle also got a boost from declining prices for corn used for livestock feed, analysts added. The U.S. Department of Agriculture said last week it would resume cattle imports from Mexico at a port of entry in Douglas, Arizona, on Monday as part of a phased reopening of the border. The agency suspended imports in May due to spread of the damaging livestock pest New World screwworm in Mexico. The decision to resume trade at the Douglas port will ease economic pain for some cattle producers who depend on imports from Mexico for their business, said Colin Woodall, CEO of the National Cattlemen's Beef Association. Other cattle groups opposed the reopening and warned that it increases the risk for screwworm to enter the United States. Mexico's government said it has started to build a $51 million facility in the country's south as part of an effort to combat screwworm. It is slated to be completed in the first half of 2026. In the pork market, CME August lean hogs ended up 1 cent at 107.100 cents per pound, after falling earlier to their lowest level in more than a month. This article was generated from an automated news agency feed without modifications to text.
Mint
03-07-2025
- Business
- Mint
CME lean hogs drop as pork prices decline, cattle higher
CHICAGO, July 3 (Reuters) - Chicago Mercantile Exchange lean hog futures fell on Thursday on lower cash market prices, while cattle futures posted modest gains despite lower beef values as tight supplies continue to underpin the market, analysts said. Trading volumes were lighter than normal and investors squared positions ahead of the long U.S. Independence Day holiday weekend, with markets closed on Friday. Declining cash pork and cash hog prices have pressured hog futures this week and the market has "officially put in a seasonal top," said Rich Nelson, chief strategist with Allendale Inc. CME August lean hogs ended down 1.800 cents at 106.100 cents per pound after hitting their lowest level since June 3. The actively traded contract was down 3.8% in the week in a second straight weekly decline. The pork carcass cutout value fell for a seventh straight session, down $1.25 in Thursday's morning update at $109.50 per cwt, according to the U.S. Department of Agriculture. Cattle futures closed firm on Friday as traders weighed current tight supplies and good packer margins against a downturn in cash beef prices. CME August live cattle ended 1.600 cents higher at 214.050 cents per pound and August feeder cattle futures finished the day up 0.475 cent at 309.500 cents per pound. Monday's announcement of a phased resumption of imports from Mexico promised to help bolster supplies in the coming months after concerns about New World screwworm in herds south of the border shut off U.S. imports on May 11. The choice boxed beef cutout fell $4.09 on Thursday morning to $390.77 per cwt while the select cutout fell $1.32 to $378.99 per cwt, according to the USDA. Average beef packer margins stood at $104.75 per head on Thursday, up from $31.93 a week ago, according to livestock marketing advisory service LLC. (Reporting by Karl Plume; Editing by Cynthia Osterman)
