CME – Market expectations are for Uniform ROA to expand to new highs, but management appears concerned about growth, the Fed, and their sales teams

• CME Group Inc. (CME:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Assets, with a 47.9x Uniform P/E. At these levels, markets have bullish expectations for the firm, but management appears concerned about new client growth, Federal Reserve activity, and their sales teams
• Specifically, may lack confidence in their ability to sustain volume growth and attract new clients and retail futures traders. Moreover, they may be exaggerating their innovation capacity, their ability to realize expense synergies, and the quality of their messaging policy. Furthermore, management may be downplaying concerns about product cannibalization, and they may be concerned about the Federal Reserve’s purchase of T-Bills and entrance into the repo market and the sustainability of SOFR futures contract activity. Finally, they may be exaggerating the quality of their sales teams and their ability to target leads in specific segments in Asia and Europe