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CME Group Inc. - CME STOCK NEWS

Welcome to our dedicated page for CME Group news (Ticker: CME), a resource for investors and traders seeking the latest updates and insights on CME Group stock.

CME Group Inc. (NASDAQ: CME) is the world's largest and most diverse derivatives marketplace. Headquartered in Chicago, CME Group operates a suite of exchanges that allow for trading across various asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals. Through its electronic trading platform, CME Globex®, and its trading facilities in New York and Chicago, the company connects buyers and sellers from around the globe.

Founded in 1898 as the Chicago Mercantile Exchange, CME Group has grown through strategic mergers and acquisitions, including CBOT Holdings in 2007, Nymex Holdings in 2008, and NEX in 2018. These expansions have solidified CME Group's position as a leader in the industry, with a 27% stake in S&P Dow Jones Indices, making it the exclusive venue for trading and clearing S&P futures contracts.

CME Group is renowned for offering the broadest range of global benchmark products. Its CME Clearing division is one of the world's leading central counterparty clearing providers, offering clearing and settlement services for exchange-traded contracts as well as over-the-counter derivatives transactions through CME ClearPort®. These services help businesses manage and mitigate counterparty credit risk effectively.

Recent financial performance highlights include a revenue report of $1.5 billion and an operating income of $960 million for the first quarter of 2024. The company achieved an average daily volume (ADV) of 26.4 million contracts during this period. Notably, its U.S. Treasury futures and options grew by 12% year-over-year, reaching a new all-time high of 7.8 million contracts per day. In addition, ADV in commodities markets increased by 14% to 4.7 million contracts.

CME Group continues to innovate and expand its product offerings. Recently, the company announced the introduction of Tuesday and Thursday Weekly WTI Crude Oil Options, pending regulatory review. This addition will offer market participants even greater flexibility in managing short-term crude oil price exposure.

Beyond financial metrics, CME Group is also monitoring broader economic indicators. For instance, the Purdue University/CME Group Ag Economy Barometer recently showed a decline in U.S. farmer sentiment, reflecting broader concerns about the financial situation on farms and anticipated challenges in the coming year.

With a strong focus on technological innovation, risk management, and customer satisfaction, CME Group remains committed to providing deep liquidity and unparalleled capital efficiencies. The company frequently updates its market participants through live conference calls and webcasts, ensuring transparency and engagement.

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CME Group (CME) has announced the launch of Adjusted Interest Rate S&P 500 (AIR) Total Return (SOFR) futures on August 26, 2024, pending regulatory review. This new product will use the Secured Overnight Financing Rate (SOFR) instead of the current Effective Federal Funds Rate (EFFR). The move comes as SOFR has become the preferred industry benchmark for short-term U.S. overnight financing.

Key points:

  • Year-to-date average daily volume of 9,800 contracts in existing AIR Total Return futures, up 113% year-over-year
  • CME Group SOFR futures have a year-to-date average daily volume of 3.3 million contracts
  • The new SOFR-based contracts aim to provide additional flexibility for managing swap exposure
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CME Group reported record-breaking financial results for Q2 2024, with revenue reaching $1.5 billion and operating income of $1.0 billion. The company achieved net income of $883 million and diluted earnings per share of $2.42. On an adjusted basis, net income was $932 million with diluted EPS of $2.56.

Highlights include:

  • Record Q2 average daily volume (ADV) of 26 million contracts
  • Year-over-year growth across all asset classes
  • Non-U.S. ADV reached a record 7.8 million contracts
  • U.S. Treasury products ADV increased 36% to 8.2 million contracts

The company paid dividends of approximately $419 million during Q2 and has returned about $25.2 billion to shareholders since 2012.

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CME Group and CF Benchmarks will introduce two new cryptocurrency reference rates and real-time indices for Ripple XRP (XRP) and Internet Computer (ICP) starting July 29. These benchmarks provide transparent pricing data to help market participants value portfolios and create structured products. The new benchmarks will use pricing data from leading exchanges such as Bitstamp, Coinbase, and Kraken and will publish the U.S. dollar price of each asset daily at 4 p.m. London time, with real-time indices published every second, year-round.

This expansion brings CME CF's suite of cryptocurrency benchmarks to 24, covering over 93% of the investible cryptocurrency market capitalization. The aim is to support the growing maturity of the cryptocurrency asset class and assist clients in risk management.

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CME Group, the leading derivatives marketplace, has appointed Mike Dennis as the Global Head of Fixed Income, effective August 5, 2024. Dennis will oversee futures and options contracts on SOFR and U.S. Treasuries, including the renowned 30-year bond and 10-, 5-, and 2-year notes, along with BrokerTec's trading platform.

He will report directly to Chairman and CEO Terry Duffy and be part of the management team. Dennis steps down from the CME Group Board of Directors to assume this role. Tim McCourt will continue to lead other financial business lines including equity indexes, FX, and cryptocurrency futures and options.

Dennis brings over 22 years of interest rate trading experience, previously serving as Principal and Chief Commercial Officer at ABN AMRO Clearing USA. His expertise includes roles at Societe Generale, Advantage Futures, and JP Morgan Chase. The appointment aims to leverage Dennis' deep industry knowledge to benefit CME's expanding interest rate business, which saw a 14% increase in Q2.

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CME Group announced a record international average daily volume (ADV) of 7.8 million contracts for Q2 2024, marking a 23% increase year-over-year. Growth was seen across all asset classes, led by interest rate and equity products, with notable gains in commodities: metals up 50%, energy up 40%, and agricultural products up 25%.

EMEA led the regions with a record 5.8 million contracts, a 28% rise, driven by foreign exchange and interest rate products, up 27% and 26% respectively. APAC recorded 1.7 million contracts, up 9%, with metals surging 62% and agricultural products up 14%. In LatAm, the ADV grew to 182,000 contracts, an 8% increase. Canada saw an 11% rise to 162,000 contracts, bolstered by energy and interest rate products.

This growth underscores CME Group's role in providing essential risk management tools amid global market volatility.

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Farmer sentiment fell in June, as reflected by the Purdue University/CME Group Ag Economy Barometer, which dropped 3 points to 105 compared to May. This was driven by a 5-point decline in the Index of Future Expectations, now at 112, despite a slight increase in the Current Conditions Index to 90. Key factors include high input costs, lower product prices, and rising interest rates. The Farm Capital Investment Index also dropped 3 points to 32. The Short-Term Farmland Value Expectations Index held steady at 115, but the Long-Term Farmland Values Index fell 7 points to 152, influenced by nonfarm investor demand and inflation. Interest in carbon capture and storage projects from ethanol plants was noted, with 8% of respondents approached, mostly with offers under $25 per acre. Moreover, 16% discussed leasing farmland for solar energy, with lease rates increasing, 27% of which exceeded $1,500 per acre.

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CME Group has announced record-breaking trading volumes for June and Q2 2024, with average daily volume (ADV) reaching 25.3 million contracts in June and 26 million contracts in Q2. Key performance highlights include significant growth across all asset classes, particularly in U.S. Treasury futures and options, which saw a 29% increase in 10-Year U.S. Treasury Note futures ADV and a 78% increase in 10-Year U.S. Treasury Note options ADV. The report also noted record volumes in Agricultural products, with Soybean Meal and Soybean Oil futures achieving new highs. Additionally, the company saw a 19% increase in international ADV to 8.1 million contracts and substantial growth in Metals, Energy, and Foreign Exchange sectors. These achievements underscore CME Group's strong position as the world's leading derivatives marketplace.

For a detailed breakdown of the statistics, visit their official website.

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CME Group has launched €STRWatch, a tool designed to help clients manage risk associated with European Central Bank (ECB) policy decisions. Building on the success of FedWatch, SOFRWatch, and TreasuryWatch, €STRWatch enables clients to analyze the impact of ECB rate decisions on futures settlement prices, particularly €STR futures. This tool helps clients project forward €STR rates by considering the spread between the ECB's deposit facility rate and the €STR rate.

Mark Rogerson, Head of Interest Rate Products, EMEA at CME Group, emphasized the importance of risk management amid shifting European interest rate policies. €STRWatch aims to assist clients as the €STR futures marketplace gains liquidity and participation.

€STRWatch will be available before the next ECB monetary policy meeting on July 25. For more details, visit CME Group's website.

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CME Group, a leading derivatives marketplace, and Chicago Mayor Brandon Johnson awarded $5,000 scholarships to 25 City Colleges of Chicago graduates. This marks the eighth year of CME Group's support for the Star Scholars program, which has facilitated higher education for students from diverse backgrounds. The scholarship program, dating back to 1986, has awarded over $2 million to Chicago students. This year, 343 Star Scholars completed their associate degrees, with 25 notable recipients selected based on their academic performance. The scholarship supports degrees in fields such as accounting, business management, and finance at partner universities. The awards were presented at a ceremony at CME Group headquarters on June 26, 2024.

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CME Group and Google Cloud have announced plans to build a new private Google Cloud region and a co-location facility in Aurora, Illinois. This significant milestone aims to support the global trading of CME Group's futures and options markets by offering ultra-low-latency networking and high-performance computing. Clients will have the flexibility to choose between self-managed infrastructure or Google Cloud's specialized infrastructure-as-a-service, both with equal network latency to the exchange. The new platform will enhance operational efficiencies, expand access to cloud services, and bring advanced AI capabilities to market users. The project is set to begin this year with disaster recovery facilities in Dallas, Texas.

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FAQ

What does CME Group Inc. do?

CME Group Inc. operates the world's largest and most diverse derivatives marketplace, offering trading across various asset classes including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.

Where is CME Group headquartered?

CME Group is headquartered in Chicago, Illinois.

How does CME Group mitigate counterparty credit risk?

CME Group mitigates counterparty credit risk through its CME Clearing division, which offers clearing and settlement services for exchange-traded contracts and over-the-counter derivatives transactions.

What recent acquisitions has CME Group made?

CME Group has made several strategic acquisitions, including CBOT Holdings in 2007, Nymex Holdings in 2008, and NEX in 2018.

What financial performance did CME Group report in Q1 2024?

In Q1 2024, CME Group reported revenue of $1.5 billion and operating income of $960 million. The average daily volume (ADV) reached 26.4 million contracts.

What new products has CME Group recently introduced?

CME Group recently announced the introduction of Tuesday and Thursday Weekly WTI Crude Oil Options, pending regulatory review, to offer greater flexibility in managing short-term crude oil price exposure.

What is the Purdue University/CME Group Ag Economy Barometer?

The Purdue University/CME Group Ag Economy Barometer is a survey that measures U.S. farmer sentiment. It recently showed a decline, reflecting broader concerns about the financial situation on farms.

How can investors stay updated on CME Group's performance?

Investors can stay updated on CME Group's performance through live conference calls, webcasts, and detailed reports posted on the company's website.

What is CME Globex?

CME Globex is CME Group's electronic trading platform that connects buyers and sellers from around the world.

What stake does CME Group have in S&P Dow Jones Indices?

CME Group holds a 27% stake in S&P Dow Jones Indices, making it the exclusive venue for trading and clearing S&P futures contracts.

CME Group Inc.

Nasdaq:CME

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70.28B
360.06M
0.43%
89.66%
1.66%
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