CME Group Stock Price, News & Analysis

CME Group will launch a Global Emissions Offset™ (GEO™) futures contract on March 1, 2021, pending regulatory reviews. The contract was developed with Xpansiv market CBL to provide a market-based solution for managing global emissions risk. Demand for voluntary carbon offsets is increasing as entities pursue sustainable practices, with the voluntary carbon offset market currently valued at $320 million. GEO futures will be linked to CORSIA standards and facilitate trading of eligible carbon credits. For more details, visit cmegroup.com/geo.

CME Group, a leader in the derivatives marketplace, reported a record average daily volume (ADV) of 5.2 million contracts internationally in 2020, marking an 8% increase from 2019. Key contributors included Equity Index products, which surged 85% , and Agricultural products, which rose 28%. In the Asia Pacific region, ADV reached 1.2 million contracts, up 20%, driven by a 120% growth in Equity Index products. Overall, CME's global ADV totaled 19.1 million contracts.

CME Group has successfully migrated BrokerTec's European government bonds and repo trading platform to CME Globex. This transition aims to enhance operational efficiencies for market participants, allowing them to trade listed interest rate derivatives alongside cash bonds and repos on a unified technology architecture. BrokerTec, acquired by CME in November 2018, plans to migrate its U.S. treasury and repo trading platform on February 1, 2021. This strategic move is expected to foster innovation and create new offerings for customers in the fixed income markets.

CME Group announced the suspension of all political contributions through its Political Action Committee (PAC) following the violent attack at the U.S. Capitol. This decision aims to reexamine contribution policies to ensure future recipients align with the company's values. The PAC historically supported candidates who endorse a free market economy. As a leading derivatives marketplace, CME Group enables clients to trade across various markets and manage risk effectively.

CME Group and IHS Markit have announced a joint venture to enhance post-trade services in the OTC markets. This new company will integrate CME's Traiana, TriOptima, and Reset with IHS Markit's MarkitSERV. Emphasizing efficiency in trade processing, the joint venture aims to streamline workflows and improve risk management for clients in diverse asset classes. IHS Markit will make a $113 million equalization payment to achieve shared ownership. The venture is expected to close in summer 2021, pending regulatory approvals.

CME Group and IHS Markit have announced a joint venture combining their post-trade services, enhancing trade processing and risk mitigation operations. The new entity will integrate CME's Traiana, TriOptima, and Reset with IHS Markit's MarkitSERV, streamlining operations for global OTC markets across various asset classes. The transaction is set to close in summer 2021, pending regulatory approvals, with an equalization payment of $113 million from IHS Markit to achieve shared control of the venture.

CME Group, a leader in the derivatives marketplace, announced the introduction of four new Japanese electricity futures and two new LNG futures contracts scheduled for trading on February 8, 2021, pending regulatory approval. These new contracts enhance CME Group's offerings in Japan, addressing the needs of a fully liberalized wholesale electricity market. The electricity futures will aid in risk management for traders, while the LNG contracts allow for trading spreads between LNG and electricity futures. Regulated under NYMEX rules, these products are aimed at optimizing price risk management.

The December Ag Economy Barometer, a collaboration between Purdue University and CME Group, rose by 7 points to 174, signaling improved producer sentiment in U.S. agriculture. The Index of Current Conditions increased by 15 points to 202, while Future Expectations rose by 5 points to 161, attributed to rising crop prices. Investment optimism grew, with the Farm Capital Investment Index reaching a record high of 93. However, concerns linger regarding U.S.-China trade disputes and anticipated regulatory changes, with only 51% expecting export growth over the next five years.

CME Group reported strong trading volume metrics for 2020, with average daily volume (ADV) reaching 19.1 million contracts. Q4 saw an ADV of 16.2 million contracts, while December recorded 14.2 million contracts. Highlights include a 63% increase in Equity Index futures and options, and records set in various asset classes, such as Metals and Natural Gas. The Micro E-mini Equity Index futures ADV surged 332% in Q4 year-over-year. Overall, December's performance showed growth in multiple sectors including Interest Rate and Agricultural products compared to December 2019.