CME Group Sees Revenues, FX Trading Volumes Tank Across the Board in Q4

CME Group couldn't manage to avoid a notable drop off in Q4 2015 in terms of its FX volumes, falling

CME Group Inc. (NASDAQ: CME) has reported its financial metrics for Q4 2015 ending December 31, 2015, which were underpinned by lower revenues on a quarterly and yearly basis, despite orchestrating an overall yearly ascension, according to a CME Group statement.

For Q4 2015, CME Group disclosed a revenue of $814 million, which was lower by -4.2% QoQ from $850 million in Q3 2015. Moreover, the group also incurred a decline in revenues relative to its 2014 counterpart – Q4 2015’s revenue represented a fall of -3.2% YoY from $841 million in Q4 2014.

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In terms of operating income, CME Group saw a figure of $470 million in Q4 2015, corresponding to a drop of -8.9% QoQ from $515 million in Q3 2015. Across a yearly timeframe, CME’s operating income in Q4 2015 was largely unchanged, registering a tepid pullback of less than -1.0% YoY from $472 million in Q4 2014.

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Volumes again trended in the wrong direction during Q4 2015, including CME Group’s average daily volume (ADV), which was stated at just 13.2 million contracts, justifying a loss of -8.3% YoY from 14.4 million contracts in Q3 2014 – this decline was even more pronounced against its 2014 counterpart, falling -11.0% YoY from Q4 2014.

Another area of CME Group’s couldn’t manage to avoid a notable drop off in Q4 2015 in terms of its FX volumes. During Q4 the group reported a volume of only 779,000 contracts, illustrating a loss of -8.9% QoQ from 855,000 contracts in Q3 2015 and -18.8% YoY from 959,000 contracts in Q4 2014.

According to CME Group Executive Chairman and President Terry Duffy, in a recent statement on the financial metrics: “In 2015, we reached record levels of volume and revenue as we enabled our increasing number of customers around the world to manage risk.”

CME Group recently reported its trading volumes activity during January 2016, having shown its average daily volumes (ADV) of combined foreign exchange (FX) futures and options at 920,110 contracts – on a dollar notional level, ADV was around $87 billion. The activity was 4.3% higher MoM than December 2015’s trading, but -2.7% lower YoY the same period in January 2015.

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