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CME Group Volumes Solid in Q2, June ADV Up, Shares Rise

Zacks Equity Research

Shares of CME Group Inc. CME were up nearly 1% in the last trading session after the company reported solid second-quarter 2019 average daily volumes (“ADV”). Volumes increased 14% year over year to 20.9 million contracts per day. While this marks the second-highest quarterly volume, record quarterly ADV was reported in Agricultural Commodities, Interest Rate options, Agricultural options and Metals options.

Agricultural Commodities ADV of 1.8 million contracts increased 6% while Interest Rate options ADV of 3.3 million contracts surged 56%. Agricultural options ADV improved 10% to 359,000 contracts and Agricultural options ADV increased 10% to 359,000 contracts.

Concurrently, the company also reported record ADV in Agricultural Commodities, Metals, Interest Rate options and Metals options for June 2019. Options volume of 5.7 million contracts surged 63%.

Interest rate volume of 12.9 million contracts per day shot up 56% while Equity index volume of 3.9 million contracts per day increased 20%. Also, Metals volume of 0.8 million contracts per day increased 20% whereas Agricultural volume of 12 million contracts per day witnessed an increase of 1% year over year. However, Energy volume of 2.5 million contracts decreased 4% and Foreign exchange volumes contracted 9% to 1.1 million contracts per day.

CME group boasts 90% market share of the global futures trading and clearing services. Given its sturdy market position with diverse derivative product lines and global reach, ADV should continue to retain the growth momentum. Also, increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model.

Shares of CME Group outperformed the industry in the second quarter. While the company has rallied 17.9%, the industry has registered a 16.4% increase.


Recently, MarketAxess Holdings Ltd. MKTX, Intercontinental Exchange, Inc. ICE and Cboe Global Markets, Inc. CBOE reported trading volume for June 2019. While MarketAxess reported trading volume of $182.9 billion for the month, Cboe Global posted ADV of 7.3 million contracts, up 0.6% year over year. Intercontinental Exchange posted 6.3 million contracts that slipped 0.3% from the year-ago month.

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