** Shares of U.S. derivative exchange operators fall after Federal Reserve cuts interest rates by 25 basis points

** CME CME.O falls 3%, Cboe Global CBOE.Z down 2.3% and Miami International Exchange MIAX.N falls 1.5%

** While lower rates encourage IPOs and boost trading, they also reduce demand for hedging products such as derivatives

** U.S. exchanges have benefited from heightened volatility this year, as investors frequently rejig portfolios in response to rapidly evolving macroeconomic and policy headlines

(Reporting by Ateev Bhandari in Bengaluru)

((Ateev.Bhandari@thomsonreuters.com;))