With a new administration in place and a more optimistic outlook from the market community, CME Group is well positioned to succeed, according to CEO Terry Duffy.

Whereas global regulatory efforts have served as a headwind for the industry since the financial crisis, now the United States is benefiting from the perception that the new administration’s stance on regulation will serve as an tailwind. There is much left to be determined, certainly, but even the shift to no new regulation as opposed to deregulation is sufficiently pro-business to elicit optimism, said Duffy.  Adding to that is the Federal Reserve as it primes for more interest rate hikes.

CME Group more than weathered this regulatory storm while building out their interest rate complex in a zero rate interest rate environment with new products. CME’s Fed Fund futures and Ultra 10-Year Treasury futures set daily records for volume on February 22, and the exchange broke open interest records in Treasury futures on 14 consecutive days in February.  The result is that CME has a deep pool of interest rate contract liquidity and the true action hasn’t even started yet.


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