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CME Group (CME) February Volumes Decline Year Over Year
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CME Group Inc. (CME - Free Report) reported soft average daily volume (ADV) for February 2021. Average daily volume of 24.6 million contracts per day was down 18% year over year, due to lower volumes in all the six product lines. There were 19 trading days in February this year as well as in February 2020.
Interest rate volume of 13.2 million contracts per day fell 22%. Energy volume of 2.7 million contracts declined 16% year over year, while Foreign exchange volumes dropped 22% to about 0.8 million contracts per day. Metals volume of 0.7 million contracts per day declined 20%. Moreover, Equity index volume of 5.5 million contracts per day fell 12% and Agricultural volume of 1.6 million contracts per day dropped 6%.
Despite the fall in February volumes, we expect the company’s operating leverage and compelling suite of products to help it record higher volumes going forward. CME Group 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.
Shares of CME Group, carrying Zacks Rank #3 (Hold), have outperformed the industry year-to-date period. The stock has gained 13.5% compared with the industry’s increase of 5.5%. Moreover, its solid fundamentals will likely help the stock regain its growth momentum.
Recently, MarketAxess Holdings (MKTX - Free Report) reported February volumes of $610.4 billion, comprising $225.3 billion in credit volume and $385.1 billion in rates volume.
Virtu Financial delivered earnings surprise of 45.68% in the last reported quarter. Intercorp Financial Services delivered an earnings surprise of 40% in the last reported quarter.
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Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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CME Group (CME) February Volumes Decline Year Over Year
CME Group Inc. (CME - Free Report) reported soft average daily volume (ADV) for February 2021. Average daily volume of 24.6 million contracts per day was down 18% year over year, due to lower volumes in all the six product lines. There were 19 trading days in February this year as well as in February 2020.
Interest rate volume of 13.2 million contracts per day fell 22%. Energy volume of 2.7 million contracts declined 16% year over year, while Foreign exchange volumes dropped 22% to about 0.8 million contracts per day. Metals volume of 0.7 million contracts per day declined 20%. Moreover, Equity index volume of 5.5 million contracts per day fell 12% and Agricultural volume of 1.6 million contracts per day dropped 6%.
Despite the fall in February volumes, we expect the company’s operating leverage and compelling suite of products to help it record higher volumes going forward. CME Group 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.
Shares of CME Group, carrying Zacks Rank #3 (Hold), have outperformed the industry year-to-date period. The stock has gained 13.5% compared with the industry’s increase of 5.5%. Moreover, its solid fundamentals will likely help the stock regain its growth momentum.
Recently, MarketAxess Holdings (MKTX - Free Report) reported February volumes of $610.4 billion, comprising $225.3 billion in credit volume and $385.1 billion in rates volume.
Stocks to Consider
Investors interested in the finance sector can look at Virtu Financial, Inc. (VIRT - Free Report) and Intercorp Financial Services Inc. (IFS - Free Report) , each carrying Zacks Rank #1 (Strong Buy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Virtu Financial delivered earnings surprise of 45.68% in the last reported quarter. Intercorp Financial Services delivered an earnings surprise of 40% in the last reported quarter.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>