Storm clouds hovering over the economy have kept demand for CME’s hedging products steady, even as hopes of a soft landing boost sentiment in markets.
“Market participants continued turning to our markets to mitigate their business risks amid accelerating geopolitical uncertainty,” Chief Executive Terry Duffy said in a statement.
The company, known mainly for its futures products tied to commodities trading, registered revenue growth of 9% to $1.34 billion from last year.
Clearing and transaction revenue rose 8.7% to $1.09 billion, while revenue for market data and information services climbed 8.6% to $167.6 million.
Higher demand for hedging has allowed CME to register three consecutive years of revenue growth.
CME Group’s (NASDAQ:CME) average daily volume was steady at 22.3 million in the quarter, slightly below 22.4 million last year.
Last week, Duffy told Reuters that CME is in a strong position to make acquisitions, armed with low debt and robust earnings.
On an adjusted basis, the company’s net income rose to $807.8 million, or $2.25 per share, for the quarter ended Sept. 30, from $710.0 million, or $1.98 per share, a year earlier.
Source: Economy - investing.com
