CME Group Q2 Revenues Increase amid Increasing Number of Traded Contracts

The company managed to outperform its financial metrics when compared to the same period a year ago.

The CME Group has just reported its quarterly earnings that show that the company managed to outperform its financial metrics when compared to the same period a year ago. During the second quarter the CME Group has managed to increase its revenue by 11 per cent when compared to last year, marking $906 million.

The company’s operating income was $563 million for the second quarter of 2016 with the net income being marked at $320 million which is $0.95 per share. On an adjusted basis the net income of the CME Group totaled $387 million. The figure is about 15 per cent higher than a year ago.

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Total open interest reached an all-time high of more than 116 million contracts on June 9th

The number of average daily contracts traded increased to 15.1 million which is higher by 13 per cent year-on-year with agricultural products marking an all time record.

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Commenting on the earnings report, the Executive Chairman and President of the CME Group Terry Duffy said: “Our second-quarter results reflect steady and balanced growth across our diverse set of products, with four of our six product lines delivering more than 20 percent year-over-year increases in volume and transaction fee revenue.”

“Total open interest reached an all-time high of more than 116 million contracts on June 9, demonstrating how market participants increasingly rely on CME Group to meet their risk management needs,” Duffy added.

The total average rate per contract amounted to 78.2 cents, which is higher by 2.6 cents when compared to the first-quarter of 2016. The increase is due to a shift in the product mix of traded contracts with commodities taking center stage.

Revenue from market data fees was $103 million, which is slightly higher than a year ago.

As of the end of June, the CME Group was holding $1.2 billion in cash and marketable securities and had $2.2 billion of long-term debt.

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