CME Group Stock Price, News & Analysis

CME Group has launched its new 20-Year U.S. Treasury Bond futures contract, available for trading since March 7, 2022. On the first day, over 1,300 contracts were traded across 30 participants, with an open interest of 1,041 contracts. This strong trading activity highlights client demand for enhanced fixed income hedging tools amidst rising market risks. Agha Mirza, CME Group's Global Head of Rates and OTC Products, expressed satisfaction with the initial participation, emphasizing the contract's role in managing long-end curve risks.

CME Group announced the successful transaction of physical aluminum on its electronic auction platform for the first time on March 3, 2022. A total of 200 metric tons of P1020A aluminum was auctioned at a premium of 35.50 cents per pound to the March 2022 aluminum futures price, which settled at $3767.75 per metric ton. The auction involved 17 participants and aims to enhance transparency and price discovery in the aluminum market. Industry leaders praised the initiative as a valuable tool for managing price volatility.

CME Group, the leading derivatives marketplace, announced that Derek Sammann, Senior Managing Director of Global Head of Commodities, Options & International Markets, will present at the 43rd Annual Raymond James Institutional Investors Conference on March 8, 2022, at 9:15 a.m. (Eastern Time). The presentation will be livestreamed on CME Group's investor website. CME Group provides clients with a platform for trading futures, options, and OTC markets, helping manage risk and capitalize on opportunities in various asset classes.

CME Group reported a significant increase in February 2022 market activity, with an average daily volume (ADV) rising 19% to 29 million contracts. Key highlights include:

• Interest Rate ADV at 14.9 million
• Equity Index ADV rose 46%
• Agricultural ADV climbed 18%
• Foreign Exchange ADV increased 8%

Record performances observed in SOFR futures and options, reflecting robust growth across all asset classes.

Farmer sentiment, as measured by the Purdue University/CME Group Ag Economy Barometer, increased by 6 points to 125 in February 2022. While the Index of Current Conditions decreased to 132, the Index of Future Expectations rose by 10 points to 122. The Farm Financial Performance Index remained at 83, but is down 27% from late 2021, indicating worsened expectations for farm finances in 2022. Key concerns include high input costs and low machinery inventories affecting investment. Internet access quality remains poor for many farmers, with only 30% reporting high-quality access.

CME Group has restructured its management team to enhance focus and strategic priorities for clients, shareholders, and employees amid changing market demands. Sunil Cutinho is appointed Chief Information Officer, succeeding retiring Kevin Kometer. Julie Holzrichter expands her role as Chief Operating Officer, overseeing global operations and CME Clearing. Promotions include Suzanne Sprague as Senior Managing Director of Global Clearing & Post-Trade Services and Tim McCourt as Senior Managing Director of Equity and FX Products. CFO John Pietrowicz plans to retire in 2023, with Lynne Fitzpatrick set to succeed him.

CME Group has launched the UST Market Profile, a pioneering tool for bond traders that integrates listed Treasury futures with BrokerTec cash treasuries. This innovative platform enables users to analyze liquidity, optimize trading methods, and minimize market impact during trades. Key features include real-time views of bid-ask spreads and market activity across various maturities. Additionally, it allows access to historical averages for informed decision-making, enhancing execution efficiency and risk management in U.S. Treasury markets. The tool will include 20-Year U.S. Treasury Bond futures from March 7, pending regulatory review.

On February 10, BrokerTec achieved a record of $2.83 billion in single-day notional volume for its Relative Value (RV) Curve spread trading. Additionally, a weekly average daily notional volume of $1.47 billion was recorded during the week of February 7, 2022. This surge in trading activity reflects clients' growing reliance on RV Curve to manage risks amid volatile market conditions influenced by rising U.S. inflation and changing bond yields. The RV Curve tool allows trading of predefined U.S. Treasury benchmark spreads efficiently.