CME Group Posts 22.5% YoY Q4 2021 Operating Income Jump
- The platform ended the quarter with a net income of $625.2 million.
- Trading demand in the quarter increased significantly.

CME Group (Nasdaq: CME), which operates a major US derivatives exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
Read this Term, reported $1.1 billion in revenue for the fourth quarter of 2021, along with an operating income of $632 million. These figures jumped by 4.4 percent and 22.5 percent, respectively, on a yearly basis.
Announced on Wednesday, the platform detailed that the net income for the three months came in at $625 million, while the diluted earnings per share stood at $1.71. Both these figures came in at $608 million and $1.66, respectively, on an adjusted basis.
Interestingly, the revenue and EPS for the quarter came in line with the consensus street estimates.
The revenue for the full year came in at $4.7 billion and operating income at $2.6 billion. The net income for 12 months was at $2.6 billion, with diluted EPS at $7.29. The adjusted net income and EPS were at $2.4 billion and $6.67, respectively.
Trading Demand Surged
Additionally, the exchange provided the trading metrics, showcasing a solid jump in the institutional demand. The average daily volume (ADV) in the final quarter of the year increased by 26 percent year-over-year to 20.5 million contracts. In addition to that, Non-US ADV jumped by 4 percent to reach a record 5.5 million contracts.
“We achieved record trading volume in 2021, driven by client demand for tools to hedge against continued economic uncertainty across markets,” said Terry Duffy, the Chairman and CEO of CME Group. “We delivered strong performance across core benchmarks, new products and international business during 2021.”
“We are pleased 2022 is off to a strong start with our highest January average daily volume on record of 24.6 million contracts, led by strong equity index and interest rate volumes.”
CME Group (Nasdaq: CME), which operates a major US derivatives exchange
Exchange
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading.
Read this Term, reported $1.1 billion in revenue for the fourth quarter of 2021, along with an operating income of $632 million. These figures jumped by 4.4 percent and 22.5 percent, respectively, on a yearly basis.
Announced on Wednesday, the platform detailed that the net income for the three months came in at $625 million, while the diluted earnings per share stood at $1.71. Both these figures came in at $608 million and $1.66, respectively, on an adjusted basis.
Interestingly, the revenue and EPS for the quarter came in line with the consensus street estimates.
The revenue for the full year came in at $4.7 billion and operating income at $2.6 billion. The net income for 12 months was at $2.6 billion, with diluted EPS at $7.29. The adjusted net income and EPS were at $2.4 billion and $6.67, respectively.
Trading Demand Surged
Additionally, the exchange provided the trading metrics, showcasing a solid jump in the institutional demand. The average daily volume (ADV) in the final quarter of the year increased by 26 percent year-over-year to 20.5 million contracts. In addition to that, Non-US ADV jumped by 4 percent to reach a record 5.5 million contracts.
“We achieved record trading volume in 2021, driven by client demand for tools to hedge against continued economic uncertainty across markets,” said Terry Duffy, the Chairman and CEO of CME Group. “We delivered strong performance across core benchmarks, new products and international business during 2021.”
“We are pleased 2022 is off to a strong start with our highest January average daily volume on record of 24.6 million contracts, led by strong equity index and interest rate volumes.”