CME Group Reports Drop in FX Trading in Q2, Revenues Grow

CME Group has reported its financial results for the second quarter of 2019, revealing an uptick in revenues year-on-year, but a drop in net income on the same comparison.

During the second quarter of 2019, CME Group reported a revenue of $1.3 billion. This is higher than the $1.1 billion the company reported in the same quarter of 2018 by 20.1 percent.

Net income attributable to CME Group for the period came in at $514 million, which is lower than the net income of $566 million achieved in the first quarter of 2018 by 9.2 percent.

In terms of trading, the daily average volume (ADV) for the second quarter increased by 14 percent year-on-year. As Finance Magnates reported, the firm reported record international volumes for the quarter, with an ADV of 5.4 million contracts. This represents a growth of 24 percent.

FX trading falls YoY, CME report shows

Breaking down the quarterly ADV into products, the number of 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 (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) futures and options on futures contracts traded were 874,000. This number is lower than the ADV achieved in every quarter in 2018. It is down 15.5 percent year-on-year and 1.2 percent quarter-on-quarter.

Almost all other product lines achieved a yearly uptick in the second quarter, excluding energy and metals. This means interest rates, equity indexes, and agricultural commodities all rose from the Q2 of 2018.

In terms of the rate per contract, the average RPC was $0.713 for FX contracts. Again, this is down on a year-on-year comparison. In fact, all products besides metals noted a drop in the average RPC against the second quarter of 2018.

Commenting on the results, CME Group Chairman and Chief Executive Officer Terry Duffy said: "During the second quarter, our clients turned to CME Group to manage their risks amid ongoing global trade concerns, geopolitical unease and Fed policy uncertainty, all of which drove our strong financial results.

"We delivered the second-highest quarterly average daily volume in our history, with 21 million contracts per day, driven in part by record trading volume outside the U.S. and strong options activity, while maintaining our focus on expense control…”