Wednesday, March 7, 2012

CME Vows No New Big Deals

The CME Group's CFO Jamie Parisi today stated that the CME will not make any new big deals going forward.  So let's get this straight.  Your bid for the world's largest industrial metals exchange, the LME, is not a large deal?  Parisi also stated that the fallout from the CME's failure to make MFG clients whole has largely dissipated, with a large portion of the volume now returning.  As we stated at the time, this is the real reason the CME decreased silver margins several weeks ago- to entice speculators back into the COMEX paper markets, where the bullion banks and their algo's can again begin fleecing them regularly.  It appears this strategy has been wildly successful.

A CME Group Inc executive repeated a long-standing promise that the giant exchange operator will not make any more large acquisitions but defined 'large' so as to rule in a smaller deal like the London Metals Exchange.

CME's multibillion-dollar acquisitions of the Chicago Board of Trade and the New York Mercantile Exchange were large, chief financial officer Jamie Parisi said on Wednesday at the Citi 2012 Financial Services Conference...
Separately, Parisi also said the impact that the collapse of brokerage MF Global had on CME trading volumes had largely dissipated.
"I think that a large portion of that volume has come back," he said.
Trading volume at CME, which is down about 10 percent from a year earlier, is like a "tight spring" that needs a catalyst like a better economy and the prospect of an increase in interest rates to get it going, he said.
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