QUICK TAKE: Moody’s Says CMA Acquisition of NEX Is a ”Good Fit”

Traders Magazine Online News, March 29, 2018

John D'Antona Jr.

It’s like peanut butter and jelly – a great fit.

Moody’s analyst and senior vice president Donald Robertson said that the announcement of CME to purchase the NEX is a good fit and makes sense to him.

“NEX is a good strategic fit for CME, because combining CME’s extensive derivatives exchange and clearing activities with NEX’s electronic trading platforms in the spot fixed income and foreign exchange markets would diversify CME’s income into adjacent markets, and would provide clear opportunities for realizing extensive cost synergies. And NEX’s expertise in portfolio compression, that allows derivatives market participants to reduce notional amounts outstanding, operational risks and regulatory capital costs, would closely align with CME’s extensive activities in the derivatives markets.”

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