You're watching...
CME Group Executive Chairman Terry Duffy on how potential sequestration could impact the markets and investors.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
It's -- the futures market.
May actually feel some trickle down effect of the CME group the world's largest futures market has said that.
In particular livestock and dairy contracts of all things could be impacted because of cuts to the USDA the Department of Agriculture.
What does this means for investors you know there's always some type of reaction right a domino effect or for the CME is a whole joining me now.
CME executive chair Terry Duffy word day and eight hours away.
It's amazing argue preparing for -- in some -- -- perform well we are we have procedures in place for our lives are complex and our Gary complex realism and so.
Whether we do a cash settlement version of instead of -- physical delivery which we can do.
Things of that mechanism but again I don't see there's going up projected -- -- time but we do have back up measures in place so you've had meetings about.
This possibility a lot of people that -- on this issue for.
Quite a long time just to be prepared in case the sequestration just -- -- on Friday.
And they do cut back of some did you UST graders in it could be impacted delivery period now you -- remember we're going to deliver resentment.
Quarterly -- basis on cattle and -- so we're not doing my reading -- -- week.
-- so cute don't anticipate this will be huge but to -- speaks to the larger issue of Washington being addicted to games of chicken like this.
Fiscal cliff debt ceiling problems -- clock why this -- with up to -- clock you know I don't know.
But I I think I would hope that.
They would stop that type of activity -- disturbing look at like businesses do in try to plan for the future instead of what what includes nonetheless second.
An exceptional sense and all the good news about loses and the market to shake evolves off.
Markets have been trading and government fundamentals for four years on my opinion.
Whether it's in Europe or whether it's in the US now they're not trading and government -- are trading on macro events as it relates to the products of the company's so.
Revenues of firms things of that nature -- -- it's a very good time.
The economy well you've got to look at things over which you have control and that's your own business.
There has been so much consolidation you just heard Charlie Gasparino talking about the -- tonight's C and I've got to get your comment on that you have to -- about half look at -- go to they can spin off the cash equities business of the -- seek.
Anything in there that you would be interested it possibly could would should force.
That was part -- The you know potential partner for the nicely you know obviously we don't comment about speculation what casino really a lot of said the same darn thing yesterday -- -- CME got an overlay or very well -- after eleven years -- public company that was.
But -- now.
But if you don't -- Specifically comment on those things you specifically can comment on how you grow and how you maintain real opportunity gone into Europe.
And it.
But BI says it has a derivatives plan and Europe as well.
All right and we compete with the them today you know under NYSE Euronext that you know they have the love the let contracts today now -- swollen and eventually.
We're competing with the -- -- -- separately on energy you know compete with them on in shape autism is no different and we -- -- -- But what's important.
Is our asset classes and diversity of CME group's products.
-- last two days alone we trade over 44 million contracts which represents an underlying notional value of eleven trillion dollars of risk changing hands in two days.
That's a staggering amount of -- question stock for every 25 broke a record -- copper futures contract -- -- we've got record for.
-- -- future so so you're not letting anybody push you guys off the edge.
Push you guys around at all.
No I mean we're not going to we're gonna stay very focused you know we're we're not out -- thumping our -- what we're gonna do -- deliver results and that's the most important thing that it's certainly -- of let's talk about trading close of trading volumes have -- -- so far.
Well as I mentioned last couple days and a much better -- twelve was kind of a difficult year but again I think this whole lot of because.
Government intervention in the marketplace you know what's gonna happen -- certainty how -- people what are the rules of the road going to be no one knew no one knows so.
One of the good things is I think that's all coming to a -- we have the arrangement coming in March for the first mandatory clearing.
-- -- for products so that's very important.
I -- was say something else is very important is that -- I I take credit for -- standing here being in New York right now because tonight we are honoring Terry.
He is our man of the hour at the building homes for heroes gala where -- build.
Custom homes for the most severely wounded soldiers -- spread and Morocco he's -- about the double arm transplant.
Terry has been -- -- -- I keep going back to you you -- people about the paycheck tonight we're honoring you at our -- so thank you and by the way all of our viewers can help to I don't -- it's five dollars building homes for heroes dot -- is led him.
Think you -- it's an amazing organization for what you do for her husband I think is terrific thank you so much we will be right.
