CME Group posts second-highest quarterly revenues

The CME Group has released its results for the first quarter of 2023. The derivatives marketplace reported revenues of $1.4 billion during the first three months of 2023. The reported revenues during the quarter were the second-highest quarterly revenues reported by the group.

CME posts second-highest quarterly revenues

The Chairman and the Chief Executive Officer at CME Group, Terry Duffy, noted that the revenues reported by the company were a record for the company. The revenue represented a 17% increase from the $1.2 billion the marketplace’s derivatives business generated in the last quarter of 2022. Last year, CME Group reported total revenues of $5 billion.

Duffy noted that the record revenue performance during the quarter was because of the “flight to futures” among participants in the global market that wanted to manage the risks existing across different asset classes during the quarter.

This development led to CME Group reporting the highest adjusted net income and the highest adjusted earnings per share in the company’s history. The other positive figures reported by the company include an operating income of $914 million, while the net income during the period was $884 million.

The derivatives marketplace also reported that the diluted EPS was $2.43 during the first three months of 2023. The financial results showed that CME Group had robust results in Q1, and the same could potentially be seen during the rest of the year.

CME Group reports a solid first quarter

CME Group is a derivatives marketplace that operates several trading platforms such as Globex, EBS, and BrokerTec. These platforms offer various financial instruments such as futures and options, fixed-income trading, and forex services. CME Group also operates CME Clearing, a central counterparty clearing service.

CME posted one of its best quarterly results in Q1 2023. The total daily volume reported during the period surpassed ’25 million contracts 28 times.’  The marketplace also posted average daily volumes of 26.9 million contracts during the quarter.

CME Group also reported an ADV of 7.2 million contracts in non-US marketplaces. The number represented Europe, the Middle East, Africa, Asia, and Latin America. In March 2023, the marketplace had the second-highest quarterly ADV, with the average daily volume increasing by 24% to 30.3 million contracts. This indicates that CLE Group is having one of its best years.

The latest financial results posted by the marketplace show that the single-day volume came in at 66.3 million contracts on March 13. On the other hand, the forex futures and options contracts reached 3.15 million on March 8, 2023. Duffy also explained that the company expected risk management to continue being an important aspect of the company’s operations.

“Of particular note was our double-digit growth in options and interest rate products, including the growth in our SOFR derivatives complex, driven by ongoing Fed policy changes and regional bank stress,” Duffy said.