CME Group Posts Solid Q3 Profits and Surge in Volumes


CME Group (NASDAQ: CME), which operates a major US derivatives exchange , has published its quarterly financial results for the third quarter of 2022. A 26% increase in trading volume guaranteed robust results compared to the previous year, generating substantial revenue and net income growth.

CME’s total revenue for the period stood at $1.2 billion, increasing 11% from $1.11 reported in Q3 2021. The net income rose to $719 million ($1.98 per share), which is up from $574 million ($1.60 per share) in the same period a year earlier. Analysts had expected the exchange operator’s final net profit to be slightly lower at $1.94.

“Our strong Q3 financial performance was driven by a 26% increase in trading volume, generating double-digit growth in total revenue. During the quarter, year-over-year volume rose in five of our six asset classes, led by interest rates, equity indexes, and a near-record quarter for foreign exchange,” Terry Duffy, CME’s Group Chairman and Chief Executive Officer, said.

“Likewise, the demand for our products remains strong, with year-to-date volumes up 22%, as clients continue to manage risk amid global economic and geopolitical uncertainty.”

Macroeconomic Uncertainty Boosts Trading Volumes

With each passing month, the investment and macroeconomic environment are becoming more uncertain. This increases market volatility and trading volumes as well. Transaction fees and clearing , the most crucial part of the revenue generated by CME, grew by 14% during the quarter, reaching almost one billion dollars.

CME customers also showed increased interest in hedging instruments. In the face of uncertainty, the market is trying to dump riskier assets and move as safely as possible to more stable asset classes.

The average daily volume (ADV) reached 22.4 million contracts in the third quarter. That includes non-U.S. ADV of 6.1 million contracts and higher investment activity in Asia (41%), Latin America (31%) and EMEA (14%).

CME Group (NASDAQ: CME), which operates a major US derivatives exchange , has published its quarterly financial results for the third quarter of 2022. A 26% increase in trading volume guaranteed robust results compared to the previous year, generating substantial revenue and net income growth.

CME’s total revenue for the period stood at $1.2 billion, increasing 11% from $1.11 reported in Q3 2021. The net income rose to $719 million ($1.98 per share), which is up from $574 million ($1.60 per share) in the same period a year earlier. Analysts had expected the exchange operator’s final net profit to be slightly lower at $1.94.

“Our strong Q3 financial performance was driven by a 26% increase in trading volume, generating double-digit growth in total revenue. During the quarter, year-over-year volume rose in five of our six asset classes, led by interest rates, equity indexes, and a near-record quarter for foreign exchange,” Terry Duffy, CME’s Group Chairman and Chief Executive Officer, said.

“Likewise, the demand for our products remains strong, with year-to-date volumes up 22%, as clients continue to manage risk amid global economic and geopolitical uncertainty.”

Macroeconomic Uncertainty Boosts Trading Volumes

With each passing month, the investment and macroeconomic environment are becoming more uncertain. This increases market volatility and trading volumes as well. Transaction fees and clearing , the most crucial part of the revenue generated by CME, grew by 14% during the quarter, reaching almost one billion dollars.

CME customers also showed increased interest in hedging instruments. In the face of uncertainty, the market is trying to dump riskier assets and move as safely as possible to more stable asset classes.

The average daily volume (ADV) reached 22.4 million contracts in the third quarter. That includes non-U.S. ADV of 6.1 million contracts and higher investment activity in Asia (41%), Latin America (31%) and EMEA (14%).



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