CME Group Trading Volumes Drop in Q3
The past week has seen exchanges in the blockchain-cryptocurrency marketplace, releasing their Third Quarter Financial Results. On Wednesday, October 30, 2019, the CME Group Trading released its quarterly results. The CME Exchange maintains cryptocurrency derivatives, futures and options to the clientele. Their findings indicate growth, with the total revenue coming in at $1.3 Billion for Q3. This is a 43.5% growth in comparison to the same period last year, where they earned only $904.2 Million. The increase in growth is mainly due to the transaction fees implemented earlier this year. The company’s valuation now stands at $1.04 Billion, which is 38.3% more than what the CME Group was worth in 2018.
Operating Income also rose in the same period as the Trading Revenue. The CME Group’s report indicates that the company has had a year-on-year growth with operating revenue. When it comes to 2019, they saw an increase of 19.7%. The income from business operations in 2019 was $658.2 Million. In 2018 that figure was listed at $550 Million.
Report Details
The Q3 Financial Report released by the CME Group deduces the details of their quarterly revenue. The group revealed that the daily average volumes for trading are 20.2 Million Contracts. This is an increase of 30% in comparison to 2018. A large portion of this growth came from the United States, which saw a 40% increase in active traders in contrast to the same period last year.
The growth wasn’t only in North America but also in Latin America, Asia and Europe. European Trading grew by 34%, while Asian Trading Activity increased by 61%. Latin America saw the most significant growth at 87% in comparison to 2018. The continuous growth worldwide for the CME Group is what enabled them to earn $1.3 Billion in revenue this year.
When it applies to the total quarterly ADV, the most significant asset with the biggest ADV’s were interest rates in Q3 2019. There was a total of 10.87 Million additional contracts created against the third quarter in 2018. This is 6.3% lower than the interest rate revenues earned in the second quarter of 2019. However, it’s 39.4% higher than in the same period last year. Another aspect of the CME Group that saw slight decreases was foreign trading, which dropped by 2.7% to 10% depending on the foreign currency.
Tom Arran
