BUZZ-CME Group dips after JPM downgrades to 'underweight'

Reuters06-21

** Shares of derivatives exchange CME Group fall as much as 2.2%, last down 1.4% at $195.80

** J.P.Morgan Securities downgrades CME to "underweight" rating from "neutral"; cuts PT to $187 from $206, a 5.8% downside to stock's last close

** Brokerage says FMX Exchange, backed by some of Wall Street's biggest banks and traders, presents the most credible challenger to CME to date

** Billionaire Howard Lutnick's brokerage BGC Group is entering the U.S. interest rate futures market in late summer

** JPM says market participants are frustrated at CME's behavior as a monopoly, including regular price increases and lack of product innovation

** Adds that FMX's success will ultimately depend on whether it can win over asset manager participants, which are likely CME's most sticky customers

** Eight of 17 brokerages rate the stock "buy" or higher, six "hold" and three "sell"; their median PT is $228 - LSEG

** As of last close, CME shares down 5.8% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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