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S&P raised its outlook on the CME group to stable from negative here's what's fascinating about this.
It's something they anticipate.
Will happen they believe at least S&P believes that the CME.
Should see stabilization.
On the volume trading volume liberals and they believe the -- eventually help.
This stock OK so it's hitting a new high today so how optimistic is the CME's cheap feeling Terry Duffy is CME group executive -- president.
Joining me now -- Fox Business exclusive here in town because you've just got the man of the year award from the Brazilian American organization for your efforts in technology.
Yeah actually in the chamber of commerce also -- that's a big part of our lives gotten -- very exciting being here so we have -- huge partnership with the Brazilian exchange down there which has become a dominant player in South America so -- number Rihanna and to be the recipient of this award tonight.
I don't know how you keep all of the -- together the technology 300 million trades in a single play through the CME and and you look at what the S&P analysts are saying right.
They know that volume is down because interest rates are low because the Fed but -- also -- once the Fed starts to get out of its easing policy.
You'll be a beneficiary.
We will -- and will be a beneficiary not just in our interest rate complex which is our largest but I actually think will be a beneficiary it.
All of our other asset classes -- okay that's a headline here not just interest rates but -- other successes all of I think that other asset classes are dependent.
Upon interest rates one way or the other whether they're higher -- -- that they can be impacted.
So for example right now we're looking at -- cultural products like an -- corn and wheat and soybean complex.
They've been in very static -- high prices for very long time now moved interest rates up -- -- could have an impact on that market.
You look at other markets that we have whether it's energy.
You look at the image americans' lives of -- girl well we've -- between 85 and -- 105 dollars a barrel for almost two years and really done nothing.
So that's been on the back page interest rates could influence what that products gonna do.
And then obviously we have -- short term interest -- Chrysler reorder our contract which is the largest in the world.
And all of our treasury complexes that if I -- Ben Bernanke and company and do any idea of what happened you know I said this out at a conference couple we -- -- in LA I said the -- I don't know how they're going to do because for me.
You have to look at.
Before you put a trade -- and you have to know how to exit that trade and I don't think they put this tread on.
Thinking about their exit strategy so I think that's one of the reasons why we're seeing the Dow hit all time highs I don't believe it's just because of the Fed's policies -- -- interest rates.
I -- because corporate corporations are.
Operating more official and officially today we're distributing our products throughout the world were more competitive today and that's one of the -- the market for macro fundamentals answer are going so.
Not giving the Fed all the credit for this rally and I think that's very interesting we went.
You just heard Charlie and me talking about the number terminal drama Bloomberg terminals to CME -- you know and.
We there's a tremendous amount of Bloomberg terminals and use -- our industry and 8050 dolls have.
Thousands hundreds of files are twenty grand apiece so they're really our -- that -- -- -- very expensive terminals and yes it's a big part of the information flow.
There -- the traders every day now there's a couple different sources they have weather is Bloomberg another provider but.
You know as well as I do boomers are very large companies a lot of people a lot of screws up there.
So when you see.
That their reporters were apparently looking in just to see certain behaviors does that alarm you does that disturb you I looked at this I thought I if I don't one of these things I'm totally annoyed if I'm somebody of import.
Making trades I want to keep proprietary.
Well you know we.
Yes I agree with that and down sometimes information gets out -- shouldn't get out and that happens you know it happens to exchanges it's gonna happen have you talked to Bloomberg I have not spoken to Bloomberg about this but what I think is important above the Bloomberg situation -- You know when people talk about higher frequency trading Aladdin has been topical on your show and and others -- in around the country what it is high frequency traders doing.
Is -- -- a look at Bloomberg -- also a distribution of information and real time basis.
And then when they also have the same issues as exchanges there will still which is a speed of light issue -- -- where if you're getting your information in new York and somebody in California has a -- terminal.
This because -- physics they might be getting that information a little bit -- later.
Then I would in Chicago that's not fair should Bloomberg terminals being -- -- I'm not say it's not fair that's -- physics of socialism is not fair because of the way the pipes work but.
Should they be regulated.
Well I mean were highly regulated exchange I'm a big believer in the way the world's gone today especially with the Internet and the things that come -- there -- some of the bad behaviors -- -- come up the Internet.
That there should be more intervention by some kind of -- regulators oversee these have -- so whether Bloomberg falls under that or not I'm not the expert OK finally.
Our record keeper Bloomberg term yes yes because there's no other option or not there's obviously other options but I'm not a believer in.
Just because there's a problem that -- cannot be sixty and rectified and move forward and be better for -- I'm a big believer in that.
26 minutes before the hour Terry Duffy of the Chicago Mercantile Exchange stock is up 26%.
Europe -- here.
Dividend two point 9% good to see you great to see miss you very much thank you for having me so is keeping a Bloomberg terminals.
Possibly would consider looking at some type of regulation their dependent closing bell ringing.
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