CME Group Stock Price, News & Analysis

CME Group has received approval from the National Futures Association (NFA) to establish a futures commission merchant (FCM). The approval strengthens CME Group's position in the derivatives marketplace, allowing them to adapt to evolving client needs while maintaining their commitment to the FCM model's risk management benefits. As the world's leading derivatives marketplace, CME Group enables trading in futures, options, cash, and OTC markets through platforms including CME Globex, BrokerTec, and EBS.

CME Group has launched new Spodumene CIF China (Fastmarkets) futures, with 29 contracts traded on the first day. Notable participants included JA Commodities, Mitsubishi RTM, Wogen Resources, and Wooray Commodities, with the first trade executed by Freight Investor Services. The new futures contract adds to CME Group's battery metals product suite, providing additional hedging capabilities for price exposure across the lithium value chain. Industry participants highlighted the importance of these futures for managing risk in the growing battery fabrication sector and meeting increasing demand for lithium-related products.

CME Group reported record-breaking Q3 2024 results with revenue reaching $1.6 billion and operating income of $1.0 billion. The company achieved net income of $913 million and diluted EPS of $2.50, while adjusted net income was $977 million with adjusted EPS of $2.68. Trading volume hit a record quarterly ADV of 28.3 million contracts, with growth across all asset classes. Financial products volume increased 28%, led by a 36% rise in interest rates to 14.9 million contracts ADV. The company maintained strong international performance with record non-U.S. ADV, showing 30% growth in EMEA and 28% in Asia.

CME Group has launched CBL Australian Carbon Credit Unit (ACCU) futures for trading. The first trade, consisting of five contracts, was executed as a block between Freepoint Commodities and Mercuria on October 14, 2024. These futures are physically-settled and based on Xpansiv market CBL's underlying ACCU spot market.

Peter Keavey, Global Head of Energy and Environmental Products at CME Group, highlighted the increasing demand for Australian carbon credits on both compliance and voluntary bases. The new futures will provide access to the Australian market and help establish a forward curve for improved price discovery.

CBL ACCU futures allow for delivery of Australian carbon credits on the Australian National Registry of Emissions Units (ANREU), with deliveries facilitated by CBL. These futures are listed by and subject to the rules of NYMEX.

CME Group reported a record international average daily volume (ADV) of 8.4 million contracts in Q3 2024, up 29% year-on-year. This growth was driven by increases across all asset classes, with interest rate and equity products accounting for 75% of the volume growth. Key highlights include:

- EMEA ADV hit a record 6.2 million contracts, up 30%
- APAC ADV reached 1.8 million contracts, up 28%
- Interest rate products saw record growth of 32%, driven by 38% growth in SOFR futures and 25% in Treasury contracts
- Energy products grew 30%, Equities up 25%, and record FX volumes increased by 14%

Globally, CME Group reported a record ADV of 28.3 million contracts in Q3 2024, up 27% year-on-year, largely driven by record volume in interest rate products.

CME Group announced that combined trading in its Tuesday and Thursday Crude Oil Weekly options has surpassed 100,000 total contracts traded since launching on July 22, 2024. This week, more than 50,000 Crude Oil Weekly options traded on a single day for the first time ever as demand for short-term options soars. Crude Oil Weekly options are the fastest growing energy products at CME Group, achieving new milestones:

• October 1, 2024: Single day open interest record of 72,053 contracts
• September: Highest volume month with ADV of 27,162 contracts, 15% higher than August
• September: Highest month for average daily open interest, reaching 54,700 contracts
• Three of the top 10 volume days occurred in September

CME Group, the world's leading derivatives marketplace, announced plans to launch options on six E-mini Select Sector futures and Dow Jones U.S. Real Estate Index futures on October 28, 2024, pending regulatory review. These new options aim to help clients manage volatility in individual equity sectors amid significant dispersion across sectors this year.

The options will be available on futures contracts for various sectors including Energy, Financial, Health Care, Industrial, Technology, and Utilities. This expansion is designed to provide added flexibility and capital efficiencies for market participants to adjust exposure to different segments of the equity market.

CME Group's existing Sector futures product suite has shown significant growth, with 2024-to-date average daily volume at a record 21,000 contracts and open interest at a record 267,000 contracts.

CME Group reported record-breaking average daily volume (ADV) for Q3 and September 2024, with growth across all asset classes. Q3 ADV reached 28.3 million contracts, up 27% year-over-year, while September ADV hit 28.4 million contracts, a 25% increase. Notable achievements include:

- Record quarterly interest rate ADV of 14.9 million contracts
- Record U.S. Treasury futures and options ADV of 8.4 million contracts in Q3
- Record SOFR futures ADV of 4.1 million contracts in Q3
- Record international ADV of 8.4 million contracts in Q3
- Significant growth in Equity Index, Energy, Agricultural, Foreign Exchange, and Metals products

The company's performance was driven by strong demand across various products, including U.S. Treasury futures, SOFR futures, and Micro E-mini contracts. CME Group's diverse product offerings and global reach continue to attract market participants seeking efficient risk management solutions.

CME Group has launched Bitcoin Friday futures (BFF), becoming their most successful cryptocurrency product launch with 31,498 contracts traded across two contract weeks. The first trade was executed by Galaxy and Marex on September 29. These futures are sized at one-fiftieth of one bitcoin and cash-settled to the CME CF Bitcoin Reference Rate New York Variant (BRRNY) every Friday at 4:00 p.m. New York time.

Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted the strong customer interest and the benefits of the smaller contract size and weekly Friday expiry. Industry leaders from Marex and Galaxy praised the launch, emphasizing its role in bridging traditional finance and crypto markets, and providing efficient hedging tools.

A new BFF contract is listed every Thursday at 6:00 p.m. New York time for a Friday trade date, with traders able to access the nearest two Fridays at any given point.