After digging through CME's Q2 results, my thoughts: ① No big surprises today; volumes drive CME and the market can see they've been sluggish. ② Expense guidance has more room to come down in 2H. ③ CME is hopeful rates volatility rebounds. ④ WFH move benefits market data.
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Did they elaborate on the potential drivers for rate volatility rebounding?
The drivers they talked about were: 1) huge debt issuance driving hedging demand 2) Fed has been stepping off the gas recently 3) big 2021 deficits keep the Treasury market front and center for traders
