CME and Dow Jones launch joint venture company

Source: Chicago Mercantile Exchange

CME Group Inc. (Nasdaq: CME), the world's leading and most diverse derivatives marketplace, and Dow Jones & Company today announced the launch of the new joint venture company, CME Group Index Services LLC. CME Group has a 90 percent ownership interest and Dow Jones has a 10 percent ownership interest in the new company, which continues to do business as Dow Jones Indexes and includes the Dow Jones Industrial Average as well as approximately 130,000 index properties.

"There is an increased demand for index products and services in the marketplace, particularly outside the U.S.," said CME Group Executive Chairman Terry Duffy. "By combining CME Group's resources and expertise in index derivatives trading with Dow Jones' world-class benchmark indices, we will be well positioned to develop and expand our index and market data offerings, fueling growth opportunities across all asset classes."

"We are pleased to announce the completion of our new joint venture with Dow Jones, which will provide us with new growth opportunities across asset classes and around the world," said Craig Donohue, CME Group Chief Executive Officer. "We look forward to building on the strong products and services, as well as client relationships that Dow Jones has developed. Both institutional and retail customers globally rely on Dow Jones' benchmark indexes, particularly the Dow Jones Industrial Average. Together, we expect to create new opportunities for our customers by developing innovative new products and expanding our market data dissemination services to our global network of clients and exchange partners."

Dow Jones & Company will contribute the Dow Jones Indexes business, valued at $675 million, and CME Group will contribute certain market data services, valued at $607.5 million, to the joint venture. CME Group Index Services LLC, has issued $612.5 million in aggregate principal amount of senior notes due 2018, with an annual coupon of 4.4% and an effective rate of 4.6%, which was used to pay a $607.5 million distribution to Dow Jones. The notes are fully and unconditionally guaranteed by CME Group Inc.

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