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Jim Cramer praises CME Group and Cboe as exchange duopoly
Cramer’s comments came after Cboe gained 27.8% in July, and the exchanges trade at roughly similar forward earnings multiples.
Jim Cramer, host of CNBC’s Mad Money, praised CME Group and Cboe Global Markets as exchange operators with pricing power, calling them “monopolies or at least duopolies” during a lightning round on Aug. 5.
In the same discussion, Cramer said he likes CME while also highlighting Cboe, which he previously flagged as a top performer after it rose 27.8% in July, attributing the move to volatility building through the month.
Yahoo Finance notes that CME is positioned as the world’s largest financial derivatives exchange, spanning key areas such as interest rates, equity indices, energy, agricultural commodities, and foreign exchange. It also described Cboe as the dominant venue for index options and volatility products including the VIX, framing the two as complementary market infrastructure.
The article added that Cboe recently reported a solid quarter, supporting the stock’s additional gains, and compared valuation levels: CME trades at 21.9 times forward earnings versus Cboe at 22.6 times, alongside differing recent performance drivers in options versus broader derivatives exposure.
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