CME Group Reports Q3 2015 Financial Results, FX Volumes in Retreat

CME Group Inc. (NASDAQ: CME) has reported its financial results for Q3 2015, which was highlighted by an increase in revenues since the previous quarter.

During Q3 2015, CME Group has yielded revenues of $850 million, which represents a jump of 3.7% QoQ from $820 million in Q2 2015. Over a yearly timeframe, the revenues also notched a strong performance, revenues soaring 11.5% YoY from $762 million in Q3 2014.

In terms of operating income, CME Group also saw a rising figure in its most recent release. Q3 2015 orchestrated an income of $516 million, which corresponds to a healthy 4.2% QoQ rise from $495 million in Q2 2015. In terms of its YoY counterpart, operating income edged higher by 20.0% from $430 million in Q4 2014.

FX Volumes Fall in Q3

One area of CME Group’s business that did not outperform in Q3 was foreign 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 effectiv 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 effectiv Read this Term (FX). During Q3 2015, CME Group reported an average daily volume (ADV) of just 855,000, which constitutes a decline of -5.3% QOQ from 903,000 in Q2 2015. Finally, the group’s average rate per contract (RPC) retreated to $0.708 during Q3 2015, down from $0.725 in Q2 2015.

The FX figures are hardly surprising as they follow a recent volumes report earlier this month. During September 2015, CME Group revealed largely weaker volumes, averaging just 14.1 million contracts per day, which correlated to a decrease of -7.0% YoY from September 2014.

According to CME Group Executive Chairman and President Terry Duffy, in a recent statement on the metrics, "We delivered balanced organic revenue growth in the third quarter. Commodity products revenue grew by 14 percent, financial products were up 10 percent, and market data revenue rose 13 percent.”

"Our focused growth initiatives are significantly increasing our global activity. For the third quarter, electronic trading revenue from customers outside the United States reached a record 32 percent. Additionally, we have made system enhancements, launched new products and heavily engaged with customers to continue to drive our expanding options business,” noted CME Group Chief Executive Officer Phupinder Gill in an accompanying statement.

“During the quarter, we reached record levels of options volume and the highest percentage of volume traded electronically. In addition, we have been very active over the last few months partnering with global exchanges and index providers to further drive long-term growth," he reiterated.