cme group

CME Group Reports Sharp Decline in Profits

US based major derivatives exchange CME Group (NASDAQ: CME) has published its 3Q 2020 financial results today and indicated a somber picture in terms of profits. The results for 3 months ending 30 September show a significant downturn for the exchange, according to its press release.

The company reported revenue of $1.1 billion and operating income of $525 million for the third quarter of 2020. Net income was $412 million and diluted earnings per share were $1.15. On an adjusted basis, net income was $495 million and diluted earnings per share were $1.38. Third-quarter 2020 ADV was 15.6 million contracts, including non-U.S. ADV of 4.4 million contracts. Clearing and transaction fees revenue for third-quarter 2020 totaled $835.4 million. The total average rate per contract was $0.716. Market data revenue totaled $139.4 million for third-quarter 2020.

CME Group Chairman and Chief Executive Officer Terry Duffy said “despite the many challenges created by the ongoing pandemic, our metals, equities, agriculture and data services businesses showed strong performance during the third quarter”.

Mr. Duff added: “likewise, we continued to innovate amid the extreme uncertainty, announcing a number of new products and services across asset classes, including Micro E-mini options and Nasdaq Veles California Water Index futures. In Q4, we remain focused on adding new value through the migration of BrokerTec onto CME Globex later this year, as well as providing risk management tools to help our global clients as they continue to navigate through this difficult economic environment.”

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