Metals and Energy Drive CME Group Revenues

The CME Group, one of the biggest futures exchanges in the world, has reported its second best quarter ever with revenues amounting to $842 million while the company’s operating income totaled $525 million.The net income was $473 million while diluted earnings per share amounted to $1.39. On an adjusted basis, the net income of the company was $357 million with diluted earnings per share marking $1.05. CME Group Commenting on the results of the company, the CME Group’s Executive Chairman and President Terry Duffy said: “Our solid third-quarter results included 22 percent year-over-year growth in metals average daily volume and 17 percent growth in energy.” “That was our best quarter during 2015, and represented the second-highest quarterly revenue in our history at that time. From a year-to-date perspective, we have driven record volume levels and our adjusted expenses have remained essentially flat. As a result, we have been able to grow adjusted earnings per share by double digits, while also returning $1.6 billion of dividends to our shareholders,” he elaborated. The average daily volume in contacts traded on the exchange amounted to 14.3 million, which is flat when compared to the exceptionally strong third quarter of 2015. The company’s revenues from clearing and transaction fees was $704 million, which is lower by 2 percent compared with the same period last year. During the quarter the total average rate charged by the CME Group per contract was 75.0 cents, a figure which is lower by 3.2 cents from last year’s 78.2 cents. According to the company the decline was driven by a mix shift in venue as well as member/non-member proportion primarily within equities and energy. Revenues from market data revenue increased by 2 percent year-on-year to $101 million. The CME Group’s CEO, Phupinder Gill, said: “We continue to focus on globalizing our business, growing our options franchise and providing innovative product extensions to solve challenges our customers face. We made progress during the quarter, as evidenced by the continued expansion of volume from outside the United States – most significantly in Asia in both energy and metals.” “The proportion of average daily options volume traded electronically hit an all-time high in the third quarter, which has already been surpassed so far in the fourth quarter. During the third quarter, average daily volume of our highly successful Ultra 10-year Treasury futures contract expanded by 17 percent compared with the second quarter. In addition, our new Wednesday Weekly Equity Options, launched in September, have averaged more than 25,000 contracts per day,” he concluded.

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Pramod Baviskar

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