CME Group releases Q1 trading volumes, reports $766 million net income

Derivatives marketplace, CME Group released its financial results for the first quarter of 2020 today.

CME Group reported $1.5 billion in revenue, up from $1.2 billion in Q1 the previous year. The operating income amounted $960 million, 52% up from $631 million in the previous year.

The company also reported $766 in net income, a 54% increase from $497 million during the previous year and $2.14 for diluted earnings per share. On an adjusted basis, net income reached $836 million and diluted earnings per share were $2.33.

CME Group

CME Group Chairman and Chief Executive Officer Terry Duffy said:

During the quarter, we saw significantly increased levels of client hedging and risk transfer, across all products and time zones. Though the long-term effects of the pandemic are still unknown, we remain focused on the health and safety of the entire CME Group community, as well as on facilitating risk management for our market participants during these extraordinary times and beyond.

The average daily volume (ADV) for Q1 reached 27 million contracts with 45% increase compared to the first quarter last year. Non-US ADV reached 7.3 million contracts, up by 56% and noting a 54% growth in Europe, 73% in Asia and 21% in Latin America.

Clearing and transaction fees revenue for Q1 2020 amounted to $1.3 billion. The total average rate per contract was $0.676, down 6% compared to the previous year. Market data revenue for the Q1 was $131.5 million.

CME Group reported approximately $1.0 billion in cash (including $125 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $3.5 billion of debt as of 31 March 2020.

The company paid dividends during Q1 of $1.2 billion, including the annual variable dividend for 2019 of $894 million, which was paid in January 2020.

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