CME Group Reports its Third Highest Quarterly ADV in Q1 of 2019

Despite low levels of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, CME Group Inc. has managed to achieve its third-highest quarterly volume in its history in the first quarter of 2019, the company announced this Wednesday.

During the first quarter of this year, the average daily volume (ADV) was 18.6 million contracts. Although this is the third-highest result the Chicago-headquartered company has ever achieved, it is down from the record first quarter the firm had in 2018.

Q1 of 2018 and the final quarter of 2018, were the two highest quarters in terms of ADV. So even though the most recent period was a historically solid performance, it is weaker on a year-on-year and quarter-on-quarter basis. In fact, the Group managed to report solid results across the whole of last year.

Nonetheless, the ADV for foreign exchange (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) instruments was lackluster even when compared with weaker quarters outside of Q1 and Q4 of 2018. Specifically, 885 thousand contracts were traded during the first quarter.

This is lower than the previous quarter by 6.4 percent, and it’s also down on a year-on-year comparison by 19.5 percent. It’s also weaker than the second and third quarters of last year.

The average rate per contract (RPC), however, looks a bit better for the FX sector. In the first quarter of 2019, the average RPC was $0.763. This is higher on both a quarterly and annual comparison by 5.97 percent and 0.13 percent respectively.

CME Group Achieves Quarterly Revenue of $1.2 Billion

Commenting on the results, CME Group Chairman and Chief Executive Officer Terry Duffy said: "Despite low levels of volatility in several product areas, we delivered our third-highest quarterly volume in our history during the first quarter, driven by continued product innovation and a growing proportion of our volume from customers outside the U.S.

"In addition, we continue to focus on the NEX integration and have been heavily engaged with clients about our expanded offerings. Lastly, our expense control remained solid during the first quarter of 2019."

During the first quarter of this year, CME Group reported revenue of $1.2 billion. When measured against the previous quarter, this is higher by 6.3 percent. Operating income, however, fell by 14.8 percent to hit $631 million.