CME Group, Inc. reported a solid second quarter, posting a 22 percent increase in adjusted earnings. The company, which owns and operates a number of important exchange properties including the Chicago Mercantile Board and the Chicago Board of Trade, benefited from increased transaction volumes in many of its most popular futures products.
Economic uncertainty during the quarter drove many to hedge their risk in the commodities markets.
“CME Group’s performance during the second quarter underscored the value of our products to our customers during highly volatile conditions,” said CME chief executive officer Craig Donohue. “Volume was up in every asset class, resulting in 31 percent average daily volume growth from the same quarter last year, and generating $814 million in total revenues.”
The group had profits of $270.7 million, or $4.11 per share, during the second quarter, a significant improvement from last year’s figure of $3.33 per share during the same period. That figure factored a goodwill write down of one of its subsidiaries, Credit Market analysis, without which profit would have been $4.43 per share.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
