Its like peanut butter and jelly – a great fit.
Moodys 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 CMEs extensive derivatives exchange and clearing activities with NEXs electronic trading platforms in the spot fixed income and foreign exchange markets would diversify CMEs income into adjacent markets, and would provide clear opportunities for realizing extensive cost synergies. And NEXs expertise in portfolio compression, that allows derivatives market participants to reduce notional amounts outstanding, operational risks and regulatory capital costs, would closely align with CMEs extensive activities in the derivatives markets.
