CME Group Stock Price, News & Analysis

EBS has launched its next-generation EBS Direct platform, enhancing electronic trading in the foreign exchange market. This platform boasts processing times of under 50 microseconds, which is ten times faster than its predecessor, thus improving price discovery and fill ratios. With operational efficiencies for both liquidity consumers and providers, the platform aims to revolutionize OTC FX trading. The onboarding of API customers is underway, with manual users to be migrated throughout H2 2021. EBS Direct supports disclosed and non-disclosed trading, enhancing technological capabilities for clients.

CME Group reported a significant growth in its international average daily volume (ADV) for Q2 2021, reaching 5.1 million contracts, marking a 6% increase year-on-year. Key drivers include a 30% surge in Agricultural products and a 42% rise in Interest Rate products. The EMEA region saw a 5% increase in ADV at 3.7 million contracts, while Asia Pacific ADV reached 1.2 million contracts, up 8%. Overall, global ADV was 18.4 million contracts, up 5%, supported largely by Interest Rate products growth of 25% and Agricultural products growth of 24%.

The Purdue University/CME Group Ag Economy Barometer fell 21 points to a reading of 137 in June, marking a second consecutive month of decline. The Index of Current Conditions and Index of Future Expectations also decreased significantly, reflecting farmers' concerns about rising input costs. The Farm Financial Performance Index declined by 30 points since April, indicating worsened financial outlooks. Despite such declines, farmers remain optimistic about farmland values, with both the Short-Term and Long-Term Farmland Value Expectations Indexes recording high readings.

CME Group reported a significant increase in its market activity for Q2 and June 2021, achieving an average daily volume (ADV) of 18.4 million contracts. Key highlights include a 5% overall ADV increase compared to Q2 2020, with a notable 25% rise in interest rate futures and options. Record volumes were observed in Bitcoin and Ether futures, while agricultural and options trading also saw substantial growth. Additionally, international trading volumes grew, showcasing CME's expanding global reach.

CME Group announced the trading of Micro Bitcoin futures surpassed 1 million contracts on June 25, 2021. This contract, launched just over a month prior, allows participants to hedge bitcoin price risk efficiently. Tim McCourt noted strong demand from both institutions and individual traders. Brooks Dudley highlighted higher-than-expected institutional volume, confirming the market's readiness for smaller contracts. Martin Franchi emphasized the opportunity for retail traders to diversify their crypto strategies. Micro Bitcoin futures are cash-settled based on the CME CF Bitcoin Reference Rate.

CME Group has announced the integration of its FX Link with the Bloomberg Terminal, allowing market participants to electronically access pricing and liquidity for FX swaps in G5 currency pairs. This collaboration enhances FX Link's role as a cleared, capital-efficient central limit order book. The integration facilitates seamless execution of trades and broadens access to FX futures contracts via Bloomberg's ISV, Tradebook. This move is expected to increase liquidity and price transparency in the FX market, with diverse participation from various financial entities.

CME Group announced that its Micro E-mini Equity options have surpassed 1.5 million contracts traded as of June 18, 2021. These options, which were launched in August 2020, complement the existing Micro E-mini Equity futures. Since their May 2019 launch, over 800 million Micro E-mini Equity futures contracts have been traded across four major indices. CME Group's Tim McCourt highlighted the popularity and robust participation in these options among various traders, particularly emphasizing their unique micro-sized offering that enhances risk management capabilities.

CME Group, a leading derivatives marketplace, in collaboration with Chicago Mayor Lori Lightfoot, awarded 25 scholarships of $5,000 each to Star Scholars graduating from City Colleges of Chicago. This initiative helps students transition to four-year institutions, enhancing educational equity. Mayor Lightfoot emphasized the importance of these scholarships in creating a diverse talent pipeline post-pandemic. Since 2017, CME has supported over 10,500 graduates, contributing more than $2 million in scholarships, significantly benefiting the local community and fostering academic success.