CME Group profit jumps on record rates trading
Escalating uncertainties fuel demand for CME's hedging products
Record quarterly ADV of 28.3 mln contracts in Q3
Strong double-digit growth across all CME's asset classes in Q3
Q3 2024 best quarter in CME history
Recasts lead, updates CEO comment in paragraphs 6 and 17
By Arasu Kannagi Basil and Laura Matthews
Oct 23 (Reuters) -CME Group CME.O reported a rise in third-quarter profit on Wednesday, as uncertainty around U.S. monetary policy and geopolitical events sentinvestors into the derivatives markets to manage risks, bolstering trading volumes for the exchange.
Trading volumes at exchanges tend to jump during periods of heightened uncertainty as clients increase their hedgingactivities. This drove double-digit growth across all CME asset classes in the reported quarter.
The company's total average daily volume (ADV) jumped 27% from a year earlier to a quarterly record of 28.3 million contracts.
The ADV of interest rate products, used to hedge against volatility stemming from changes in benchmark interest rates, jumped 36% to a quarterly record of 14.9 million contracts.
"Our record-breaking performance in the third quarter demonstrated the continued growing need for risk management globally," said Terry Duffy, chief executive officer, at CME Group on an analyst call. "We achieved this growth without lowering any fees or introducing any new incentive programs for these products."
CME shares were up 0.3% in early trading following the results.
Equities trading was another bright spot as volatility sparked by a sell-off in August, following a weaker-than-expected July jobs report, bolstered volumes. CME's equities ADV jumped 17% to 7.4 million contracts in the quarter.
Meanwhile, CME's energy ADV jumped 21% to 2.6 million contracts. Mounting tensions in the Middle East have increased volatility in commodity and energy markets.
Clearing and transaction fees, CME's chief source of revenue, jumped 19.5% to $1.30 billion, while market data revenue rose 6.3% to $178.2 million.
Total revenue jumped 18.4% to record $1.6 billion, beating analysts' expectations of $1.58 billion.
Net income attributable to common shareholders rose to $901.3 million from $740.8 million, a year earlier.
CME shares have risen 7.4% so far this year, underperforming the 22.7% jump in the benchmark S&P 500 .SPX index.
Duffy said opposing views on Fed policy should provide further tailwinds for interest-rate trading, while continued uncertainty around the U.S. election and geopolitics will drive liquidity and risk management needs across rates and other asset classes.
CME stock has underperformed rivals and broader markets YTD https://reut.rs/40ms32i
A glance at CME's Q3 trading volumes https://reut.rs/3Yke4Yx
CME's trading volumes hit all-time quarterly record https://reut.rs/4fiKtWd
Reporting by Arasu Kannagi Basil in Bengaluru and Laura Matthews in New York; Editing by Shinjini Ganguli and Sharon Singleton
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
