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Thursday, June 2, 2011

CME on the offensive in challenge to Liffe's rates, (NASDAQ: CME), (NYSE: NYX)

CME Group Inc (CME.O), the giant U.S.-based exchange operator, will ramp up trading of European-focused interest rate products in a direct challenge to NYSE Euronext's (NYX.N) Liffe business, and a shift to offense after years on defense. The Chicago Mercantile Exchange parent company said on Thursday it will launch electronic trading of Euribor futures and options beginning in the second half of this year, expanding its footprint beyond Eurodollars in the massive derivatives market. CME's move marks a partial shift from defending its home turf in the United States, and drives the company deeper into Europe just as London-based Liffe, which handles Euribor, is about to be acquired by Deutsche Boerse AG (DB1Gn.DE). The Germany bourse plans to acquire NYSE Euronext for $10.2 billion, creating the world's largest exchange operator and claiming the vast majority of exchange-based European rates trading.

CME Group Inc. offers access to all asset classes for futures products from a single electronic trading platform, and on trading floors in Chicago and New York City. Shares of CME traded higher by 0.4% or $1.1/share to $278.97. In the past year, the shares have traded as low as $234.50 and as high as $328.00. On average, 470946 shares of CME exchange hands on a given day and today's volume is recorded at 201526.

NYSE Euronext is a global operator of financial markets and provider of trading technologies. Shares of NYX traded higher by 0.96% or $0.34/share to $35.83. In the past year, the shares have traded as low as $26.42 and as high as $41.60. On average, 5171710 shares of NYX exchange hands on a given day and today's volume is recorded at 2372493.



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