CME Group Reports Record Results in the Third Quarter

Eulerpool Research Systems Oct 24, 2024

Takeaways NEW

  • CME Group Achieves Record Volume of 28.3 Million Contracts in the Third Quarter.
  • The international expansion leads to significant increases in revenue and customer acquisition.
CME Group once again reports a record-breaking quarter, highlighting the global demand for effective risk management. The company recorded an average daily volume (ADV) of 28.3 million contracts, the highest in its history, representing a 27% increase compared to the previous year. Notably, growth rates across all six asset classes in EMEA and APAC showed significant increases. A key factor behind this success is the SOFR product suite, which reached a daily trading high of 6.9 million contracts in September. This occurred in a context of stagnant interest rate changes by the Federal Reserve, yet contributed to a 17% growth in the interest rate complex. CME Group also recorded international successes: in the EMEA region, volumes increased by 30%, leading to an international record volume. The financial data reflect the company's operational efficiency. Revenue reached an all-time high of nearly USD 1.6 billion, an 18% increase. The operating profit margin also reached a new record at 69.1%. The tax strategy benefited from the internationalized business development, leading to a reduction in the effective tax rate. A look at customer acquisition shows that both institutional and retail customer growth experienced remarkable increases. With a 40% increase in new institutional clients year-over-year, global expansion is manifested on a significant scale. In conclusion, it is worth mentioning that despite strong performance and valuable customer retention programs, the company does not currently plan any specific M&A activities but remains flexible with dividend distribution and share buybacks.

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