Trading volumes at exchanges tend to jump during periods of heightened uncertainty as clients increase hedging activity to manage risks.
This drove double-digit growth across all CME asset classes in the reported quarter.
The company’s total average daily volume (ADV) jumped 27% from a year earlier to a quarterly record of 28.3 million contracts.
The ADV of interest rate products, which are often used to hedge against volatility stemming from changes in the benchmark interest rates, jumped 36% to a quarterly record of 14.9 million contracts.
Equities trading was another bright spot as volatility sparked by a sell-off in August, following a weaker-than-expected July jobs report, bolstered volumes. CME’s equities ADV jumped 17% to 7.4 million contracts in the quarter.
“Q3 2024 was the best quarter in CME Group (NASDAQ:CME) history,” said CEO Terry Duffy.
Meanwhile, CME’s energy ADV jumped 21% to 2.6 million contracts. Mounting geopolitical tensions in the Middle East have increased volatility in the global commodity and energy markets.
Clearing and transaction fees, CME’s chief source of revenue, jumped 19.5% to $1.30 billion in the reported quarter, while market data revenue rose 6.3% to $178.2 million.
Total revenue jumped 18.4% to record $1.6 billion.
Net income attributable to common shareholders of CME Group rose to $901.3 million, or $2.50 per share, in the three months ended Sept. 30, from $740.8 million, or $2.06 per share, a year earlier.
CME shares have risen 7.4% so far this year, underperforming the 22.7% jump in the benchmark S&P 500 index.
Source: Economy - investing.com
