Volatility Supports Earnings Growth at Derivatives Giant CME, Q4 Revenues in the Green
Thursday,05/02/2015|21:43GMTby
Adil Siddiqui
CME, the world's largest derivatives exchange, reports strong trading metrics for the last quarter of 2014, the venue saw an increase in quarterly revenues as well as a jump in average daily volumes during the three month period.
US-based, CME Group, a leading multi-asset financial derivatives bourse was on the right side of trading activity in the last quarter of 2014. The firm reported its fourth quarter and full-year financial earnings figures, with overall operating metrics in the green. The CME saw its fourth-quarter revenues increase 22%, its fourth-quarter diluted earnings per share increased more than 50%, additionally its annual average daily trading volume crossed 13.7 million contracts in 2014, with records seen in its interest rates and options segment.
In a detailed notification, the venue reported revenues of $841 million and operating income of $472 million for the fourth quarter of 2014. Net income attributable to CME Group was $306 million and diluted earnings per share were $0.91. Excluding the items noted in the reconciliation, adjusted earnings per share would have been $0.951.
Terry Duffy, CME Group’s Executive Chairman and President, commented about the results in a statement: "During the fourth quarter, we saw a pickup in Volatility that helped drive broad-based growth across all our major product offerings."
The firm benefited from a post-summer revival in international markets. Its fourth-quarter 2014 average daily volume was 14.8 million contracts, up 31% from fourth-quarter 2013, and the highest quarterly average daily volume since the first quarter of 2008.
Mr. Duffy added: "Average daily volume reached nearly 15 million contracts, up more than 30 percent and representing the second highest quarterly volume in our history. This strong performance also reflects the success of our investments to spur organic growth by attracting trading from customers outside the United States.”
Trading volumes were up across the board as financial markets were volatile on the back of the ongoing Russia-Ukraine conflict, coupled by the ECB’s quantitative easing programme. Mario Draghi’s proposal in September was a key turning point in the EUR/USD market with analysts predicting a low of 1.13. Energy markets were taking a beating with geopolitical issues impacting the price, followed by the US Shale gas dilemma which could dictate how the world's largest economy manages its energy demands
Trading volumes boosted earnings the firm receives in trading fees. CME stated that it generated $71 million in clearing and transaction fee revenues. As of December 31, 2014, the company had $1.4 billion of cash and marketable securities and $2.1 billion of long-term debt.
Phupinder Gill. CME Group Chief Executive Officer, said: "We saw significant growth in every product area during the fourth quarter, ranging from 14 percent in metals to 41 percent in interest rates.
Total options rose 38 percent and futures grew 29 percent compared with the same period last year, while electronic options increased more than 50 percent. International volumes also grew by nearly 50 percent, reaching a record 3 million contracts per day in the fourth quarter. We also reached our highest level of open interest ever and broke the record for highest daily volume. Further, we restructured the business during the quarter, positioning ourselves to generate higher margins and earnings going forward."
Shareholders of CME have benefited from consistent dividend Payments, In the latest findings, the company declared dividends during 2014 of $1.3 billion, including the annual variable dividend for 2014 of $671 million, which was paid in January 2015. The firm added that it had returned more than $4 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
CME has been battling with BGC as both firms look to acquire GFI Group.
US-based, CME Group, a leading multi-asset financial derivatives bourse was on the right side of trading activity in the last quarter of 2014. The firm reported its fourth quarter and full-year financial earnings figures, with overall operating metrics in the green. The CME saw its fourth-quarter revenues increase 22%, its fourth-quarter diluted earnings per share increased more than 50%, additionally its annual average daily trading volume crossed 13.7 million contracts in 2014, with records seen in its interest rates and options segment.
In a detailed notification, the venue reported revenues of $841 million and operating income of $472 million for the fourth quarter of 2014. Net income attributable to CME Group was $306 million and diluted earnings per share were $0.91. Excluding the items noted in the reconciliation, adjusted earnings per share would have been $0.951.
Terry Duffy, CME Group’s Executive Chairman and President, commented about the results in a statement: "During the fourth quarter, we saw a pickup in Volatility that helped drive broad-based growth across all our major product offerings."
The firm benefited from a post-summer revival in international markets. Its fourth-quarter 2014 average daily volume was 14.8 million contracts, up 31% from fourth-quarter 2013, and the highest quarterly average daily volume since the first quarter of 2008.
Mr. Duffy added: "Average daily volume reached nearly 15 million contracts, up more than 30 percent and representing the second highest quarterly volume in our history. This strong performance also reflects the success of our investments to spur organic growth by attracting trading from customers outside the United States.”
Trading volumes were up across the board as financial markets were volatile on the back of the ongoing Russia-Ukraine conflict, coupled by the ECB’s quantitative easing programme. Mario Draghi’s proposal in September was a key turning point in the EUR/USD market with analysts predicting a low of 1.13. Energy markets were taking a beating with geopolitical issues impacting the price, followed by the US Shale gas dilemma which could dictate how the world's largest economy manages its energy demands
Trading volumes boosted earnings the firm receives in trading fees. CME stated that it generated $71 million in clearing and transaction fee revenues. As of December 31, 2014, the company had $1.4 billion of cash and marketable securities and $2.1 billion of long-term debt.
Phupinder Gill. CME Group Chief Executive Officer, said: "We saw significant growth in every product area during the fourth quarter, ranging from 14 percent in metals to 41 percent in interest rates.
Total options rose 38 percent and futures grew 29 percent compared with the same period last year, while electronic options increased more than 50 percent. International volumes also grew by nearly 50 percent, reaching a record 3 million contracts per day in the fourth quarter. We also reached our highest level of open interest ever and broke the record for highest daily volume. Further, we restructured the business during the quarter, positioning ourselves to generate higher margins and earnings going forward."
Shareholders of CME have benefited from consistent dividend Payments, In the latest findings, the company declared dividends during 2014 of $1.3 billion, including the annual variable dividend for 2014 of $671 million, which was paid in January 2015. The firm added that it had returned more than $4 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
CME has been battling with BGC as both firms look to acquire GFI Group.
ASX Faces $150M Capital Charge After Scathing Inquiry Finds Years of Neglect
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
How FYNXT is Transforming Brokerages with Modular Tech | Executive Interview with Stephen Miles
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
