CME Group Q3

CME Group Reports Strong Q3 Growth Amid Market Volatility

CME Group has reported remarkable growth in its Q3 profits, driven by traders seeking stability in the face of market volatility by utilizing CME Group’s product offerings. The company’s Q3 earnings report reveals a revenue of $1.3 billion, with an impressive operating income of $820 million.

The standout figure in this earnings report is CME Group’s net income, which surged to $807.8 million, translating to $2.25 per share, for the quarter ending on September 30. This marks a substantial 13.7% improvement from the $710 million, or $1.98 per share, reported during the same period the previous year.

Terry Duffy, Chairman and Chief Executive Officer of CME Group, expressed his satisfaction with the performance, stating, “CME Group delivered its ninth consecutive quarter of double-digit growth in adjusted earnings per share, and an increase of 9% in revenue as market participants continued turning to our markets to mitigate their business risks amid accelerating geopolitical uncertainty.”

CME Group Reports Strong Q3 Growth Amid Market Volatility

He further added, “This was a particularly strong quarter, with interest rate volume increasing 6%, driven by an 18% rise in Treasury futures average daily volume (ADV) and records in our Ultra 10-Year and Ultra T-Bond futures. We also generated significant growth across agricultural, energy, and options products.”

During the third quarter of 2023, CME reported an ADV of 22.3 million contracts, underlining the continued trust of market participants in the company’s offerings. Notably, the non-US ADV showed substantial growth, reaching 6.5 million contracts, which represents an increase of 7% from the same quarter in 2022.

Comparatively, the company reported an ADV of 24.2 million contracts in August, marking a significant surge of 14% compared to the previous year. This achievement represents the second-highest ADV ever recorded for the month of August, showcasing CME Group’s resilience and adaptability to market dynamics.

During the quarter, CME Group paid dividends of approximately $400 million to its shareholders. Since implementing its variable dividend policy in early 2012, the company has returned over $22 billion to its investors, emphasizing its commitment to delivering value to its shareholders. To further ensure stability in a market characterized by subdued volatility, CME Group aims to diversify its revenue sources.

CME Group’s revenue structure for the third quarter was notable. Revenue from clearing and transaction fees amounted to $1.1 billion, with a total average rate per contract of $0.707. In addition, the company reported $168 million in revenue from market data. It is worth noting that over 80% of the company’s revenue is currently derived from transactions, a figure CME Group is actively working to reduce by expanding into alternative revenue streams.

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