Sector Snap: Exchange And Platform Operators

NEW YORK (AP) — Shares of exchange and trading platform operators mostly rose Thursday morning after the sector was upgraded by Goldman Sachs Group Inc.

Goldman upgraded the "market structure" sector to "Neutral" from "Cautious" amid better-than-expected trends in equities and options trading. Stock valuations in the sector are beginning to reflect potential growth rather than concern about a collapse in capital markets, Goldman analyst Daniel Harris wrote in a research note.

It appears the sector has passed its bottom amid the ongoing global economic downturn and operating performance should begin to improve, Harris wrote in the note.

While upgrading the sector, Harris also upgraded his ratings on both CME Group Inc. and Knight Capital Group Inc. to "Buy" from "Neutral." Harris raised his price target on CME Group by 54 percent, to $330 from $215, and his price target on Knight Capital to $21 from $20.

CME Group shares jumped $7.72, or 2.8 percent, to $281.47. Knight Capital shares gained 6 cents to $17.04.

Harris said Knight Capital, based in Jersey City, N.J., will see improving volume as it adds market share and new products. The company will be able to benefit from new products it has recently launched that had low implementation costs, Harris wrote in the note.