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CME Group (CME) May ADV Increases at Five Product Lines

·3 min read

CME Group Inc. CME reported impressive average daily volume (ADV) for May 2021. Average daily volume of 20.5 million contracts per day was up 15% year over year due to higher volumes in five of the six product lines. There were 20 trading days in May this year as well as in May 2020.

Interest rate volume of 10.2 million contracts per day increased 24%, while Foreign exchange volumes increased 9% to about 0.7 million contracts per day. Metals volume of 0.6 million contracts per day increased 25%. Moreover, Equity index volume of 5.6 million contracts per day was up 7% and Agricultural volume of 1.5 million contracts per day increased 45%. However, Energy volume of 2 million contracts declined 17% year over year.

Volume at CME Group was backed by solid operating leverage. A compelling suit of products is expected to help CME Group record higher volume, going forward. The company maintains a solid market share of about 90% in global futures trading and clearing services.

Expansion of futures products in the emerging markets plus an increase in non-transaction related opportunities as well as OTC offerings should continue to contribute modestly to the top line in the years ahead.

Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives and a strong global presence will likely drive growth.

Price Performance

Shares of CME Group, carrying a Zacks Rank #3 (Hold), have outperformed the industry in the year-to-date period. The stock has gained 18.8% compared with the industry’s increase of 6.7%. Moreover, its solid fundamentals will likely help the stock maintain its growth momentum.

Zacks Investment Research
Zacks Investment Research

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May Volumes of Other Securities Exchanges

Recently, MarketAxess Holdings MKTX reported May volumes of $478.7 billion, comprising $204.4 billion in credit volume and $274.3 billion in rates volume.

Nasdaq NDAQ also reported May volumes. While U.S. equity options volume increased 36.5% year over year to 244 million contracts, European options and futures volume decreased 1.8% year over year to 5.3 million contracts.

Stock to Consider

Investors interested in the finance sector can look at OTC Markets Group Inc. OTCM, carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average beat being 33.47%.

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CME Group Inc. (CME) : Free Stock Analysis Report

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OTC Markets Group Inc. (OTCM) : Free Stock Analysis Report

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Zacks Investment Research