CME Earning Date, Transcript Summary & Report

Record Financial Performance: This quarter represented the highest volume, revenue, operating income, and diluted earnings per share in the history of CME Group.

Record Revenue and Income: Our quarterly revenue crossed $1.6 billion for the first time, and we also exceeded $1 billion in adjusted net income.

Record Quarterly Volume: The first quarter average daily volume of 29.8 million contracts was the highest quarterly ADV in CME Group’s history, increasing 13% compared to the same period last year.

Asset Class Volume Growth: Year-over-year volume growth was seen in all six asset classes, including all-time quarterly volume records in interest rates, equities, agricultural commodities, and foreign exchange.

Sector Volume Growth: Commodity sector volumes grew by 19%, and financial products grew by 12%.

International Business Volume Surge: The international business averaged 8.8 million contracts per day, up 19% from the prior year, with quarterly volume records in both EMEA and APAC.

Market Linkage Opportunities: We recently announced several new offerings that will create opportunities for stronger links between cash and futures markets.

Open Interest Increase: Our open interest today is 7% higher than at the same point last year, indicating continued use of our products to manage risk exposures.

Single-Day Cash Movement Record: We set a new single-day record for moving cash associated with mark-to-market on April 9th, collecting $32 billion from firms with losses and paying out $32 billion to firms with gains.

Market Continuity Achieved: Our systems functioned as designed, ensuring market continuity during a period of extreme volatility, with record order entry volumes on Globex exceeding 13 billion messages in one week.

Record Revenue Growth: CME Group generated revenue up 10% from the first quarter in 2024, with the highest quarterly clearing and transaction fees in our history of $1.3 billion, up 11% year over year.

Record Market Data Revenue: Market data revenue reached a record level, up 11% to $195 million.

Record Operating Income Growth: Adjusted operating income came in at a record $1.2 billion, up 14% year over year, with an adjusted operating margin of 71.1%.

Record Quarterly Earnings: CME Group delivered the highest quarterly adjusted net income and adjusted diluted earnings per share in our history at $1 billion and $2.80 per share, respectively, both up 12% from the first quarter last year.

Pricing Pressure Indicators: Despite record earnings, the average rate per contract decreased by 1% compared to the previous year, indicating potential pricing pressure.

Margin Requirement Increase: The company had to increase margin requirements in response to heightened volatility, which could indicate underlying market instability.

Revenue vs. Operational Costs: While revenue grew by 10%, the growth rate may not be sufficient to keep pace with rising operational costs in the long term.

Market Volatility Indicators: The significant cash movement of $32 billion on April 9th due to mark-to-market losses suggests a high level of risk and volatility in the market.

Adjusted Effective Tax Rate: The adjusted effective tax rate of 23.1% may indicate a higher tax burden compared to previous periods, impacting net income.

Dividend Payout Concerns: The company paid out approximately $2.6 billion in dividends during the quarter, which could raise concerns about cash flow sustainability if earnings do not continue to grow.