Feb 5 CME Group Inc expects expenses to
rise to $1.25 billion this year, as the exchange operator plans
a public relations campaign to restore confidence in an industry
battered by customer losses stemming from two high profile
The rise in expenses, from $1.22 billion this year, also
comes as the Chicago-based firm resumes hiring to handle new
technology and regulatory needs, CME Group's chief financial
officer said on a conference call following release of financial
results from the fourth quarter.
The 2011 failure of MF Global, which left a $1.6 billion
hole in customers' pockets, and the 2012 collapse of Peregrine
Financial Group, whose CEO stole more than $200 million from his
clients, shook the industry and hurt trading activity. It forced
regulators to tighten oversight and exchanges like CME to
redouble efforts to reassure clients their money is safe.
CME Group CFO Jamie Parisi said on Tuesday the company plans
a $10 million marketing campaign to boost confidence.
He added that expenses could be as low as $1.23 billion, if
CME does not meet expected levels of trading activity. He
declined to say what level of trading was forecast.
Separately, CME Group CEO Phupinder Gill said he continues
to see no large acquisition opportunities, and said
IntercontinentalExchange Inc's planned takeover of NYSE Euronext
"doesn't change anything" in terms of CME strategy.