cme group

CME Group Reports Flat Rise in Q3 Revenue, Net Income Doubles

CME Group (NASDAQ: CME) has reported its fiscal results for the third quarter of 2021, which topped Wall Street expectations for earnings and revenue.

The world’s largest financial derivatives exchange reported third-quarter earnings of $926.5 million on revenue of $1.1 billion and operating income of $614 million.

Q3 revenue was marginally higher from $1.08 billion compared to the same quarter of 2020. However, the profitability numbers more than doubled from the year-ago period.

The upbeat performance came on the back of a slight rise in clearing and transaction fees, coupled with an 4% y-o-y growth in market data and information services. The clearing and transaction fees rebounded due to higher equity indexes and metals average daily volume, coupled with some improvement in the average rate per contract.

On an adjusted basis, the Chicago-based company said it had net income of $574 million and diluted earnings per share were $1.60.  CME Group reported diluted earnings per share at $2.58, while adjusted earnings for non-recurring gains were $1.60 per share.

In terms of its operational metrics, the exchange operator disclosed Q3 2021 ADV at 17.8 million contracts. Average daily volume grew 14% from a year earlier, led by double-digit growth in interest rates, energy and options products, as well as strong non-U.S. volumes, which increased to 5 million contracts per day.

The parent company of the Chicago Board of Trade and other exchanges posted $879 million in clearing and transaction fees revenue for third-quarter. This figure was 5 percent higher from $835 million in the same period of 2020.

The total average rate per contract was $0.677, while market data revenue totaled $145 million, the exchange said.

“Since the beginning of the year we have delivered 70 new products and solutions, including the introduction of Micro Treasury futures and new ESG-focused products in Q3. Additionally, we made significant progress executing against our long-term strategy by completing the joint venture with IHS Markit and together launching OSTTRA, our new post-trade services company,” said CME Group Chairman and Chief Executive Officer Terry Duffy.

Earlier in September, CME provided updated metrics about its micro Bitcoin futures, which averaged 21,000 contracts, including more than 2.1 million total contracts since their launch in May.

Roughly two and half years after the launch of the world’s first Bitcoin futures, CME Group brought another level of diversification to cryptocurrency traders with a micro Bitcoin futures contract.