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CME Group's (CME) Volumes for March & Q1 Solid, Increase Y/Y
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CME Group Inc. (CME - Free Report) reported average daily volume (ADV) for March 2020. The month recorded ADV of 32.1 million contracts per day, up 68% year over year on the back of increased contribution across all six product lines. Moreover, it increased 6.5% sequentially. Options volume increased 6.3 million contracts per day, up 54% year over year.
Energy volume of 3.6 million contracts increased 67% year over year. Interest rate volume of 15.7 million contracts per day increased 51% while Equity index volume of 8.9 million contracts per day increased 153%. Also, Metals volume of 0.9 million contracts per day increased 55% whereas Foreign exchange volumes surged 36% to 1.4 million contracts per day. Agricultural volume of 1.6 million contracts per day increased 16% year over year.
Q1 Volumes
CME Group also reported first-quarter 2020 volumes. The quarter recorded ADV of 27 million contracts, up 45% from first-quarter 2019.
Energy volume of 3.2 million contracts increased 38% from first-quarter 2019. Interest rate volume of 13.8 million contracts per day increased 34% while Equity index volume of 6.5 million contracts per day increased 106%. Also, Metals volume of 0.9 million contracts per day increased 58% whereas Foreign exchange volumes rose 22% to 1.1 million contracts per day. Agricultural volume of 1.5 million contracts per day increased 9% from first-quarter 2019.
Volumes at CME Group were backed by solid operating leverage, which helped it maintain 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 its top-line growth 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 should also drive growth.
Shares of CME Group have underperformed the industry in a year’s time. The stock has gained 5.8%, underperforming the industry’s increase of 12.3%. Nevertheless, its solid fundamentals will likely help the stock retain its growth momentum. CME Group currently carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, securities exchanges, namely Intercontinental Exchange Incorporation (ICE - Free Report) , Cboe Global Markets, Inc. (CBOE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported volumes.
Intercontinental Exchange’s ADV in March increased 56% to 9.4 million largely backed by improved Financial ADV, Commodities ADV and Energy ADV.
Cboe Global reported strong ADV for March. Total ADV of 12 million contracts increased 68% year over year due to strong performance across the business lines — Options, Futures, U.S. Equities and European Equities.
MarketAxess Holdings’ ADV of $269.5 billion for March 2020 was up 50.8% year over year.
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CME Group's (CME) Volumes for March & Q1 Solid, Increase Y/Y
CME Group Inc. (CME - Free Report) reported average daily volume (ADV) for March 2020. The month recorded ADV of 32.1 million contracts per day, up 68% year over year on the back of increased contribution across all six product lines. Moreover, it increased 6.5% sequentially. Options volume increased 6.3 million contracts per day, up 54% year over year.
Energy volume of 3.6 million contracts increased 67% year over year. Interest rate volume of 15.7 million contracts per day increased 51% while Equity index volume of 8.9 million contracts per day increased 153%. Also, Metals volume of 0.9 million contracts per day increased 55% whereas Foreign exchange volumes surged 36% to 1.4 million contracts per day. Agricultural volume of 1.6 million contracts per day increased 16% year over year.
Q1 Volumes
CME Group also reported first-quarter 2020 volumes. The quarter recorded ADV of 27 million contracts, up 45% from first-quarter 2019.
Energy volume of 3.2 million contracts increased 38% from first-quarter 2019. Interest rate volume of 13.8 million contracts per day increased 34% while Equity index volume of 6.5 million contracts per day increased 106%. Also, Metals volume of 0.9 million contracts per day increased 58% whereas Foreign exchange volumes rose 22% to 1.1 million contracts per day. Agricultural volume of 1.5 million contracts per day increased 9% from first-quarter 2019.
Volumes at CME Group were backed by solid operating leverage, which helped it maintain 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 its top-line growth 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 should also drive growth.
Shares of CME Group have underperformed the industry in a year’s time. The stock has gained 5.8%, underperforming the industry’s increase of 12.3%. Nevertheless, its solid fundamentals will likely help the stock retain its growth momentum. CME Group currently carries Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, securities exchanges, namely Intercontinental Exchange Incorporation (ICE - Free Report) , Cboe Global Markets, Inc. (CBOE - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported volumes.
Intercontinental Exchange’s ADV in March increased 56% to 9.4 million largely backed by improved Financial ADV, Commodities ADV and Energy ADV.
Cboe Global reported strong ADV for March. Total ADV of 12 million contracts increased 68% year over year due to strong performance across the business lines — Options, Futures, U.S. Equities and European Equities.
MarketAxess Holdings’ ADV of $269.5 billion for March 2020 was up 50.8% year over year.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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