1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Ron Baron on Chicago Mercantile Exchange

August 16, 2006 | About:

Chicago Mercantile Exchange Holdings, which has grown to become the world’s largest financial exchange, experienced increased daily trading volume across all its product categories – perhaps most impressive was the 45% annual increase in core interest rate

contracts that the exchange recorded during June. We believe that the exchange will continue to benefit from several of its small but rapidly growing product categories, including foreign exchange, interest rate options, energy and commodities. Furthermore, we believe that the company will continue to innovate new product categories that

can be added to its electronic Globex trading platform at low cost, and that these products will carry high incremental operating margins. First Marblehead, the provider of

outsourced services to financial institutions participating in the private student loan market, saw its shares increase after the company reported several favorable developments during the quarter. Its loan facilitation volume increased 45%, implying a strong pipeline of loans available for future securitizations, on which First Marblehead earns the bulk of its revenues. In addition, the economics of its most recent securitization did not indicate a meaningful reduction in profitability, as some investors had feared. Lastly, the company announced new client relationships with Key Bank and GE Consumer Finance.

Rating: 2.8/5 (6 votes)


Please leave your comment:

GuruFocus has detected 4 Warning Signs with CME Group Inc $CME.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by

User Generated Screeners

alberto.lopezblancoPI / PTB
Jeremieroyspinoffs + insiders
sm0yerconsistant growth
patelmhwalter schloss balance sheet b
valueppAsset Management Company
cspunarSG -2
cspunarSG -1
jtepper2High GROC Selloff
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat