Are CME Group Shares Still a Good Value?

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Financial market trading is mostly done online these days, with physical pits — where enthusiastic traders yell over each other — slowly phasing out. A few do still exist, and one of the biggest operators is the CME Group (NASDAQ:CME), based in Chicago. The company runs the largest derivatives marketplace in the world, where investors can access futures and options contracts on thousands of underlying products. CME Globex, the online portion of the business, accounts for around 90% of total volume. 

These financial instruments are popular with market participants because they usually offer leverage — the ability to borrow money to increase potential returns (and losses) — making it easier to build big positions, as you don’t need to front all the money. However, according to the company’s results, use of these products may have peaked 12 months ago, and many of its financial metrics are now struggling…

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