FX, Interest Rate and Energy Trading Boost CME Group Q1 2015 Financials
- Strong trading in interest rate, energy and FX products led the CME to achieve is second best quarter by revenues and trading volumes.
The CME Group has issued its Q1 2015 financial report. During the quarter, the 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 operator recorded revenues of $843 million which was an 8% increase compared to the same period in 2014. The revenues were the second largest quarterly figure for the CME Group. Bottom line Net Income was reported at $330.4 million or $0.98 a share, a 23.8% increase from 2014.
According to the CME Group, revenues were boosted by strong trading volumes in the interest rate, energy and FX products. The exchange also reported that international trading was strong with double digit growth from Europe and 22% growth from Asia. Overall average daily volumes of contracts was the firm’s second largest ever at 14.99 million contracts versus 13.66 million in Q1 2014.
In addition to globalization, we made progress with our Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term clearing and options business - Phupinder Gill
In addition to FX, energy and interest rates product growth, CME Group Chief Executive Officer Phupinder Gill singled out clearing and options products as he stated “In addition to globalization, we made progress with our swaps clearing and options business. Interest rate swaps clearing revenue grew 57 percent, and we are seeing additional signs that our 500+ swaps clients are increasing their usage of our core futures products. Options volume reached a record 2.8 million contracts per day during the quarter. Also, the combination of top-line growth and our internal efficiency and productivity enhancements led to significant operating margin expansion and earnings growth during the first quarter."
Prior to the report, analysts were expecting the CME Group to report earnings of $0.95. The profit beat has led shares of the CME (CME:NYSE) to open up slightly on the NYSE to $89.75 compared to yesterday’s closing price of $89.20.
The CME Group has issued its Q1 2015 financial report. During the quarter, the 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 operator recorded revenues of $843 million which was an 8% increase compared to the same period in 2014. The revenues were the second largest quarterly figure for the CME Group. Bottom line Net Income was reported at $330.4 million or $0.98 a share, a 23.8% increase from 2014.
According to the CME Group, revenues were boosted by strong trading volumes in the interest rate, energy and FX products. The exchange also reported that international trading was strong with double digit growth from Europe and 22% growth from Asia. Overall average daily volumes of contracts was the firm’s second largest ever at 14.99 million contracts versus 13.66 million in Q1 2014.
In addition to globalization, we made progress with our Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term clearing and options business - Phupinder Gill
In addition to FX, energy and interest rates product growth, CME Group Chief Executive Officer Phupinder Gill singled out clearing and options products as he stated “In addition to globalization, we made progress with our swaps clearing and options business. Interest rate swaps clearing revenue grew 57 percent, and we are seeing additional signs that our 500+ swaps clients are increasing their usage of our core futures products. Options volume reached a record 2.8 million contracts per day during the quarter. Also, the combination of top-line growth and our internal efficiency and productivity enhancements led to significant operating margin expansion and earnings growth during the first quarter."
Prior to the report, analysts were expecting the CME Group to report earnings of $0.95. The profit beat has led shares of the CME (CME:NYSE) to open up slightly on the NYSE to $89.75 compared to yesterday’s closing price of $89.20.