CME Group Stock Price, News & Analysis

CME Group reported strong financial results for Q4 and the full year of 2022, with Q4 revenue of $1.2 billion and operating income of $668 million. Net income stood at $638 million, translating to diluted EPS of $1.75. For the full year, total revenue was $5.0 billion, operating income reached $3.0 billion, and net income was $2.7 billion with diluted EPS of $7.40. The average daily volume grew 19%, hitting a record 23.3 million contracts. The company declared a $1.10 dividend per share for Q1 2023, a 10% increase from the previous level.

The Purdue University/CME Group Ag Economy Barometer showed a modest rise in January, increasing by 4 points to 130, driven by improved future expectations. The Future Expectations Index rose by 5 points to 127, while the Current Conditions Index increased by 1 point to 136. Despite this optimism, many producers anticipate tighter margins in 2023. The Farm Capital Investment Index climbed 2 points to 42, but is 7% lower than a year ago. Notably, interest rates are a growing concern, with 39% of pessimistic respondents citing high machinery costs. Overall, 22% expect larger operating loans due to increased input costs, down from 27% last year.

CME Group has announced two new director nominees, Harold Ford Jr. and Kathryn Benesh, for election at its annual meeting on May 4, 2023. Ford, a former Congressman and current PNC Financial Services Regional President, brings extensive experience in public policy and investment banking. Benesh, a retired Deloitte partner, has significant expertise in audit and advisory services across various industries. Their nominations aim to enhance the board's oversight capabilities. Departing directors Dennis H. Chookaszian and Ana Dutra will not seek re-election. CME Group continues to lead in the derivatives marketplace.

CME Group reported strong market statistics for January 2023, highlighting an average daily volume (ADV) of 21.7 million contracts. Key figures include:

• SOFR options ADV surged by 499% to a record 1,842,233 contracts.
• Interest Rate ADV totaled 10.3 million contracts.
• Equity Index ADV reached 6.7 million contracts.
• Metals ADV saw a 9% increase.

The report indicates growing interest in derivatives, particularly SOFR futures, which saw a 256% rise in ADV.

CME Group has declared a quarterly dividend of $1.10 per share, reflecting a 10% increase from the previous $1.00 per share. This dividend is set to be paid on March 27, 2023, to shareholders recorded as of March 10, 2023. As a leading derivatives marketplace, CME Group continues to support its shareholders through consistent dividend growth, highlighting its robust financial position and commitment to returning value to investors.

CME Group has announced the expansion of its E-mini Russell 2000 futures options by introducing Tuesday and Thursday weekly options, set to launch on February 27, pending regulatory review. This addition complements existing options, catering to the increasing demand for short-dated options, allowing clients greater flexibility for hedging and trading around significant market events. In 2022, E-mini Russell 2000 futures recorded an impressive average daily volume exceeding 241,000 contracts. This move is part of CME's ongoing efforts to enhance its product offerings in collaboration with FTSE Russell.

CME Group has reported that open interest in Copper Options (HX) has reached a record high of 137,574 contracts as of January 18, 2023. Average daily volume (ADV) for Copper Futures and Options is currently 131,466 contracts, reflecting a 42% increase from 2022. Additionally, Copper Options ADV has surged by 410% year-over-year. This growth is attributed to market participants managing risks amidst recession concerns and China's easing of COVID-19 restrictions. Recent trading days have seen remarkable open interest increases, with January 11-18 showing record levels in Copper Options.

CME Group announced the expansion of its weekly options for Micro E-mini Nasdaq-100 and S&P 500 futures, launching contracts on Mondays, Tuesdays, Wednesdays, and Thursdays starting February 13, pending regulatory approval. This move adds to existing Friday Weeklies and aims to meet growing demand for short-dated equity options. In 2022, the trading volume for these products surged over 50% year-over-year, with significant daily average volumes recorded: Micro E-mini Nasdaq-100 at 1.45 million contracts and S&P 500 at 1.37 million contracts. CME Group continues to enhance its partnership with Nasdaq and S&P Dow Jones Indices to provide traders with better risk management tools.