CME Quarterly Profits Rise, Bitcoin Futures Rise

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Men walk into the CME Group offices in New York, USA on October 18, 2017. REUTERS / Brendan McDermid / File Photo

Oct. 27 (Reuters) – CME Group Inc (CME.O) on Wednesday said its third-quarter profit more than doubled as futures exchange traders’ interest rate and energy trading increased, while The approval of exchange-traded funds (ETFs) linked to CME bitcoin futures contracts also increased volumes.

Average daily volume at CME increased 14% year-over-year to 17.8 million contracts, mainly driven by double-digit growth in interest rate futures, up 53% , and energy futures, up 18% as economies around the world reopen from COVID-19 lockdowns.

CME’s bitcoin futures volumes increased 170% from Q3 2020, helped by recent regulatory approval and the launch of the first US bitcoin linked to futures. Read more

“The launch of ETFs based on CME’s bitcoin futures is industry validation of what we have known for some time that CME’s bitcoin futures are the primary source of discovery. bitcoin prices in the industry, “Sean Tully, global head of financial services and OTC products, said on a call with analysts.

So far in October, the average daily bitcoin contract volume of the company has increased 57% from September, reaching over 12,000 contracts or over 60,000 bitcoin equivalents with a record value of 3.5. billion dollars a day, he said.

Net income attributable to CME reached $ 926.5 million, or $ 2.58 per share, in the quarter ended September 30, from $ 411.7 million, or $ 1.15 per share, a year earlier.

Excluding one-time costs, the company earned $ 1.60 per share, four cents less than analysts’ consensus estimate, according to IBES data from Refinitiv.

Total quarterly revenue rose nearly 3% to $ 1.11 billion, just short of the analysts’ average estimate of $ 1.15 billion.

The majority of the failures relate to a new aftermarket services company CME launched jointly with IHS Markit, said Daniel Fannon, analyst at Jefferies.

Reporting by John McCrank in New York and Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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