Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>During the third quarter of 2025, CME Group, a leading global derivatives marketplace, reported revenues of $1.5 billion, marking a 3% decline compared to the exceptionally strong performance in the same quarter of the previous year.</li><li>It is notable that despite this decrease, CME Group continued to maintain robust financial health, evidenced by an adjusted operating income of $1.1 billion and a significant operating margin of 68.4%.</li><li>The average rate per contract was $0.702, translating into $1.2 billion in clearing and transaction fees, which underscores the critical role these fees play in the company's revenue structure.</li></ul>

During the third quarter of 2025, CME Group, a leading global derivatives marketplace, reported revenues of $1.5 billion, marking a 3% decline compared to the exceptionally strong performance in the same quarter of the previous year.It is notable that despite this decrease, CME Group continued to maintain robust financial health, evidenced by an adjusted operating income of $1.1 billion and a significant operating margin of 68.4%.The average rate per contract was $0.702, translating into $1.2 billion in clearing and transaction fees, which underscores the critical role these fees play in the company's revenue structure.

CME Group: An Insight Into Its Market Data Revenue Growth

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

<ul>
<li>LSEG’s share price has performed poorly in 2025 due to AI disruption concerns relating to its data and analytics business; we believe LSEG can fend off this risk of disruption</li>
<li>In our view, LSEG’s data and analytics segment harbours a defensive moat shielding it from potential disrupters; we believe LSEG shares are deep value relative to its DM exchange peers</li>
<li>We keep our buy on flow monster CME Group for its dominant franchise – despite FMX - in its trading and post-trading operations dedicated to interest rates and other products</li>
</ul>


LSEG’s share price has performed poorly in 2025 due to AI disruption concerns relating to its data and analytics business; we believe LSEG can fend off this risk of disruption
In our view, LSEG’s data and analytics segment harbours a defensive moat shielding it from potential disrupters; we believe LSEG shares are deep value relative to its DM exchange peers
We keep our buy on flow monster CME Group for its dominant franchise – despite FMX - in its trading and post-trading operations dedicated to interest rates and other products


Developed Market (DM) Exchanges – 2026 High Conviction Calls

<ul><li>CME Group Inc. demonstrated strong performance in the second quarter of 2025, characterized by recordbreaking trading volumes and financial results.</li><li>The average daily volume (ADV) exceeded 30 million contracts for the first time in the company's history, representing a 16% increase over the same period last year.</li><li>This broad-based growth was observed across all six asset classes, with notable records in interest rates, agricultural commodities, and metals, reflecting a heightened demand for risk management solutions amidst global macroeconomic uncertainties.</li></ul>

CME Group Inc. demonstrated strong performance in the second quarter of 2025, characterized by recordbreaking trading volumes and financial results.The average daily volume (ADV) exceeded 30 million contracts for the first time in the company's history, representing a 16% increase over the same period last year.This broad-based growth was observed across all six asset classes, with notable records in interest rates, agricultural commodities, and metals, reflecting a heightened demand for risk management solutions amidst global macroeconomic uncertainties.

CME Group Adds 90,000 Retail Traders—Is a Futures Trading Boom Just Getting Started?

Podcast by Dom Cooke to explore big businesses, Business Breakdowns

Business Breakdowns

Podcast by Dom Cooke to explore big businesses

Learn how companies work from the people who know them best. We do deep research and interview industry veterans, investment professionals, and corporate executives to explain the inner workings of public stocks and private businesses. For each company, we break down their history, business model, financial statements, secret sauce, and bull/bear case. We believe every business has lessons to teach us and Breakdowns is here to highlight them. Learn more and stay up to date at www.joincolossus.com.

<ul><li>Exchanges like the Chicago Mercantile Exchange serve the crucial function of bringing buyers and sellers together, ensuring transactions are completed smoothly and efficiently.</li><li>Clearinghouses, coordinated by exchanges, play a vital role in finalizing transactions and mitigating risks, acting as a safety net to guarantee trades will settle even if one party defaults.</li><li>CME Group specializes in futures contracts, offering a wide range of products and deep liquidity pools for global benchmark products, making it a leading marketplace for derivatives globally.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Exchanges like the Chicago Mercantile Exchange serve the crucial function of bringing buyers and sellers together, ensuring transactions are completed smoothly and efficiently.Clearinghouses, coordinated by exchanges, play a vital role in finalizing transactions and mitigating risks, acting as a safety net to guarantee trades will settle even if one party defaults.CME Group specializes in futures contracts, offering a wide range of products and deep liquidity pools for global benchmark products, making it a leading marketplace for derivatives globally.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

CME Group: The House Always Wins - [Business Breakdowns, EP.224]

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Quantitative Analysis

<ul>
<li>Financials Exchanges have hit record highs in Global fund ownership, with 58% of global funds invested and 49% ahead of the MSCI ACWI index.</li>
<li>CME Group and London Stock Exchange lead momentum, both reaching record ownership after strong inflows through 2023–2024.</li>
<li>Despite growth, ownership breadth remains shallow, with only a few stocks widely held, leaving room for further expansion in positioning.</li>
</ul>


Financials Exchanges have hit record highs in Global fund ownership, with 58% of global funds invested and 49% ahead of the MSCI ACWI index.
CME Group and London Stock Exchange lead momentum, both reaching record ownership after strong inflows through 2023–2024.
Despite growth, ownership breadth remains shallow, with only a few stocks widely held, leaving room for further expansion in positioning.


Global Financial Exchanges: A Sector on the Rise

United States

CME Group Inc. operates a derivatives exchange that trades futures contracts and options on futures, interest rates, stock indexes, foreign exchange and commodities.  The Exchange brings together buyers and sellers of derivatives products on its trading floors, electronic trading platform, and through privately negotiated transactions that it clears.

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CME Group (CME US)

CME Group: An Insight Into Its Market Data Revenue Growth

During the third quarter of 2025, CME Group, a leading global derivatives marketplace, reported revenues of $1.5 billion, marking a 3% decline...

Baptista Research

Developed Market (DM) Exchanges – 2026 High Conviction Calls

LSEG's share price hit due to AI disruption fears, but its data and analytics segment has a defensive moat. CME Group remains a buy for its...

Victor Galliano

CME Group Adds 90,000 Retail Traders—Is a Futures Trading Boom Just Getting Started?

CME Group Inc. demonstrated strong performance in the second quarter of 2025, characterized by recordbreaking trading volumes and financial...

Baptista Research

CME Group: The House Always Wins - [Business Breakdowns, EP.224]

The article discusses the importance of financial exchanges and clearinghouses, with a focus on the Chicago Mercantile Exchange (CME) as the...

Business Breakdowns

Global Financial Exchanges: A Sector on the Rise

Financials Exchanges are at record exposure levels, led by CME and LSE. Momentum is strong, but breadth is shallow, with few stocks widely...

Steven Holden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

CME Group: An Insight Into Its Market Data Revenue Growth

During the third quarter of 2025, CME Group, a leading global derivatives marketplace, reported revenues of $1.5 billion, marking a 3% decline...

Baptista Research

Developed Market (DM) Exchanges – 2026 High Conviction Calls

​LSEG's share price hit due to AI disruption fears, but its data and analytics segment has a defensive moat. CME Group remains a buy for its...

Victor Galliano

CME Group Adds 90,000 Retail Traders—Is a Futures Trading Boom Just Getting Started?

CME Group Inc. demonstrated strong performance in the second quarter of 2025, characterized by recordbreaking trading volumes and financial...

Baptista Research

CME Group: The House Always Wins - [Business Breakdowns, EP.224]

The article discusses the importance of financial exchanges and clearinghouses, with a focus on the Chicago Mercantile Exchange (CME) as the...

Business Breakdowns

Global Financial Exchanges: A Sector on the Rise

Financials Exchanges are at record exposure levels, led by CME and LSE. Momentum is strong, but breadth is shallow, with few stocks widely...

Steven Holden

LSEG's share price hit due to AI disruption fears, but its data and analytics segment has a defensive moat. CME Group remains a buy for its...