The CME Group, a top derivatives
marketplace, released its first quarter 2023 financial results on Wednesday,
reporting $1.4 billion in revenue for the period. The amount is the Group’s
second-highest quarterly revenue, according to Terry Duffy, the Chairman and Chief Executive
Officer.CME’s Revenue Grows in Q1The revenue represents growth of 17% from the $1.2 billion the derivatives business generated during the last
quarter of 2022. Also, the Group reported total revenue of $5 billion last year.Duffy attributed the new
quarterly revenue performance to “flight to futures” among global market
participants who sought to manage risks across asset classes during the period.
Additionally, the development resulted in the Group’s highest adjusted net income and
highest adjusted earnings per share (EPS) ever, Duffy said.This is even as the CME Group
reported an operating income of $914 million and a net income of $884
million during the first three months of 2023. In addition, the
derivatives marketplace operator’s diluted EPS came in at
$2.43 during the first quarter. CME Breaks Records in Q1As a derivatives marketplace, the CME Group operates Globex, a platform for trading futures and options on
futures; BrokerTec, a marketplace for fixed-income trading; and EBS, a portal
for foreign exchange trading. In addition, the Group runs CME Clearing, a central
counterparty clearing service.During the first quarter of 2023,
the Group’s total daily volume exceeded ’25 million contracts 28 times’. Moreover, the
Chicago-based marketplace reported an average daily volume (ADV) of 26.9
million contracts during the period.In particular, the CME Group noted
that its ADV in non-United States marketplaces touched down at 7.2 million contracts,
accounting for the second-highest quarterly ADV across Europe, Middle East and
Africa (EMEA), Asia and Latin America. Finance Magnates reported earlier that the Group saw its second-highest March and quarterly ADV in March 2023 as the average daily volume grew 24% to 30.3 million
contracts.Furthermore, the CME Group in its
latest financial result reported a new single-day volume record of 66.3 million
contracts on March 13. Again, the derivatives marketplace operator’s
single-day volume of forex futures and options contracts earlier peaked at 3.15 million contracts on March 8, 2023.“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 explained, adding that the company expects “risk management will continue to be more important than ever.”FMA flags fraudulent broker; new FX pairs on Admirals; read today’s news nuggets.
This article was written by Solomon Oladipupo at www.financemagnates.com.
