On Tuesday while speaking at the?Credit Suisse conference in Miami, CME Group Inc.’s (NASDAQ:CME) Chief Executive Phupinder Gill said that he did not see “the advantage of going private at this time” reported Reuters.
He noted that CME?would not increase its flexibility if it was privately held and added that it would continue being regulated by agencies such as the Commodity Futures Trading Commission.
Gill’s comments came just one day after stories revealed that Nasdaq OMX Group, Inc.(NASDAQ:NDAQ) had talked about a similar move. The private equity firm Carlyle Group had approached the exchange about taking it private but talks ended after the two sides couldn’t agree on a price.
The CEO did say that there is an “intense debate” within CME to counterbalance falling volumes by charging a greater amount to customers for clearing services. He believes at this time fees would be appropriate but the exchange would modify them when necessary. ?
Thanks to the falling trading volumes and lower volatility, exchanges have been facing greater pressures lately. Just last week, CME reported its fourth-quarter net income fell to $166.8 million (50 cents a share, from $746 million ($2.25 a share) in the previous year.?
NYSE Euronext also?reported its declining fourth quarter numbers which included a net income fall of 75% to $28 million from the previous year’s $100 million.