CME Group Viewed as Strongest Liquidity Venue in Current Market, Morgan Stanley Says

MT Newswires Live04-23

CME Group (CME) is best placed in the current market environment, with recent volatility reducing competitive pressure and pushing traders toward the deepest liquidity pools, Morgan Stanley said Thursday in a report.

Debates over inflation and interest rates could lift average daily volume more than 9% in 2026 and 8% in 2027, outpacing the 6% growth seen over the past five years, the report said.

CME could also see higher activity as governments run larger deficits, supply chains remain unsettled, and energy markets continue to shift, the report said.

Morgan Stanley pointed to rapid growth in CME's event-based contracts, which have drawn 150,000 new accounts and about 215 million trades since their December launch, as well as the exchange's plans to launch 24/7 crypto trading on May 29.9.

Still, a softer-than-expected rate per contract in Q1 may weigh on earnings, the report said. Morgan Stanley trimmed its 2027 EPS estimate by 2.5%.

Morgan Stanley cut its price target on CME stock to $353 from $362 and maintained its overweight rating.

Price: 282.56, Change: -3.15, Percent Change: -1.10

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