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CME Group (CME) May ADV Increases at Five Product Lines
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CME Group Inc. (CME - Free Report) reported impressive average daily volume (ADV) for May 2021. Average daily volume of 20.5 million contracts per day was up 15% year over year due to higher volumes in five of the six product lines. There were 20 trading days in May this year as well as in May 2020.
Interest rate volume of 10.2 million contracts per day increased 24%, while Foreign exchange volumes increased 9% to about 0.7 million contracts per day. Metals volume of 0.6 million contracts per day increased 25%. Moreover, Equity index volume of 5.6 million contracts per day was up 7% and Agricultural volume of 1.5 million contracts per day increased 45%. However, Energy volume of 2 million contracts declined 17% year over year.
Volume at CME Group was backed by solid operating leverage. A compelling suit of products is expected to help CME Group record higher volume, going forward. The company 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.
Price Performance
Shares of CME Group, carrying a Zacks Rank #3 (Hold), have outperformed the industry in the year-to-date period. The stock has gained 18.8% compared with the industry’s increase of 6.7%. Moreover, its solid fundamentals will likely help the stock maintain its growth momentum.
Image Source: Zacks Investment Research
May Volumes of Other Securities Exchanges
Recently, MarketAxess Holdings (MKTX - Free Report) reported May volumes of $478.7 billion, comprising $204.4 billion in credit volume and $274.3 billion in rates volume.
Nasdaq (NDAQ - Free Report) also reported May volumes. While U.S. equity options volume increased 36.5% year over year to 244 million contracts, European options and futures volume decreased 1.8% year over year to 5.3 million contracts.
Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average beat being 33.47%.
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Image: Bigstock
CME Group (CME) May ADV Increases at Five Product Lines
CME Group Inc. (CME - Free Report) reported impressive average daily volume (ADV) for May 2021. Average daily volume of 20.5 million contracts per day was up 15% year over year due to higher volumes in five of the six product lines. There were 20 trading days in May this year as well as in May 2020.
Interest rate volume of 10.2 million contracts per day increased 24%, while Foreign exchange volumes increased 9% to about 0.7 million contracts per day. Metals volume of 0.6 million contracts per day increased 25%. Moreover, Equity index volume of 5.6 million contracts per day was up 7% and Agricultural volume of 1.5 million contracts per day increased 45%. However, Energy volume of 2 million contracts declined 17% year over year.
Volume at CME Group was backed by solid operating leverage. A compelling suit of products is expected to help CME Group record higher volume, going forward. The company 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.
Price Performance
Shares of CME Group, carrying a Zacks Rank #3 (Hold), have outperformed the industry in the year-to-date period. The stock has gained 18.8% compared with the industry’s increase of 6.7%. Moreover, its solid fundamentals will likely help the stock maintain its growth momentum.
May Volumes of Other Securities Exchanges
Recently, MarketAxess Holdings (MKTX - Free Report) reported May volumes of $478.7 billion, comprising $204.4 billion in credit volume and $274.3 billion in rates volume.
Nasdaq (NDAQ - Free Report) also reported May volumes. While U.S. equity options volume increased 36.5% year over year to 244 million contracts, European options and futures volume decreased 1.8% year over year to 5.3 million contracts.
Stock to Consider
Investors interested in the finance sector can look at OTC Markets Group Inc. (OTCM - Free Report) , carrying Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average beat being 33.47%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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