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CME Group (CME) November ADV Increases at Four Product Lines
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CME Group Inc. (CME - Free Report) reported an impressive average daily volume (ADV) for November 2021. The average daily volume of 23.1 million contracts per day was up 20% year over year due to higher volumes in four of the six product lines. There were 21 trading days in November this year.
Interest rate volume of 12.3 million contracts per day increased 40%. Energy volume of 2.4 million contracts increased 15% year over year. Moreover, Equity index volume of 5.6 million contracts per day was up 4%. However, Metals volume of 0.6 million contracts per day decreased 11%. Foreign exchange volumes increased 6% to about 0.8 million contracts per day while Agricultural volume of 1.4 million contracts per day decreased 11%.
Volume at CME Group was backed by solid operating leverage. A compelling suite 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 Zacks Rank #3 (Hold), have underperformed the industry in the past year. The stock has gained 23.1% compared with the industry’s increase of 29.7%. Nevertheless, its solid fundamentals will likely help CME stock to grow further.
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November Volumes of Another Securities Exchange
Nasdaq (NDAQ - Free Report) reported November volumes recently. While U.S. equity options volume increased 24.4% year over year to 301 million contracts, European options and futures volume remains unchanged year over year at 5.9 million contracts.
In Cash Equities, Nasdaq’s U.S. matched equity volume in November grossed 39.8 billion shares, up 1.9% from the prior-year quarter. European equity volume improved 5.3% year over year to $112.7 billion.
OTC Markets Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.39%. The Zacks Consensus Estimate for OTC Markets Group’s 2021 and 2022 has moved up 8.3% and 14.8% in the past 30 days. The expected long-term earnings growth rate is pegged at 9%, in line with the industry average.
Intercontinental Exchange’s earnings surpassed estimates in each of the last four quarters, the average beat being 3.11%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Intercontinental Exchange implies 12.9% and 8.7% year-over-year growth, respectively.
OTCM, ICE and NDAQ have gained 68.5%, 22.1% and 60.6%, respectively, in the past year.
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CME Group (CME) November ADV Increases at Four Product Lines
CME Group Inc. (CME - Free Report) reported an impressive average daily volume (ADV) for November 2021. The average daily volume of 23.1 million contracts per day was up 20% year over year due to higher volumes in four of the six product lines. There were 21 trading days in November this year.
Interest rate volume of 12.3 million contracts per day increased 40%. Energy volume of 2.4 million contracts increased 15% year over year. Moreover, Equity index volume of 5.6 million contracts per day was up 4%. However, Metals volume of 0.6 million contracts per day decreased 11%. Foreign exchange volumes increased 6% to about 0.8 million contracts per day while Agricultural volume of 1.4 million contracts per day decreased 11%.
Volume at CME Group was backed by solid operating leverage. A compelling suite 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 Zacks Rank #3 (Hold), have underperformed the industry in the past year. The stock has gained 23.1% compared with the industry’s increase of 29.7%. Nevertheless, its solid fundamentals will likely help CME stock to grow further.
November Volumes of Another Securities Exchange
Nasdaq (NDAQ - Free Report) reported November volumes recently. While U.S. equity options volume increased 24.4% year over year to 301 million contracts, European options and futures volume remains unchanged year over year at 5.9 million contracts.
In Cash Equities, Nasdaq’s U.S. matched equity volume in November grossed 39.8 billion shares, up 1.9% from the prior-year quarter. European equity volume improved 5.3% year over year to $112.7 billion.
Stocks to Consider
Some better-ranked stocks include OTC Markets Group (OTCM - Free Report) and Intercontinental Exchange (ICE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
OTC Markets Group’s earnings surpassed estimates in each of the last four quarters, the average beat being 41.39%. The Zacks Consensus Estimate for OTC Markets Group’s 2021 and 2022 has moved up 8.3% and 14.8% in the past 30 days. The expected long-term earnings growth rate is pegged at 9%, in line with the industry average.
Intercontinental Exchange’s earnings surpassed estimates in each of the last four quarters, the average beat being 3.11%. The Zacks Consensus Estimate for 2021 and 2022 earnings of Intercontinental Exchange implies 12.9% and 8.7% year-over-year growth, respectively.
OTCM, ICE and NDAQ have gained 68.5%, 22.1% and 60.6%, respectively, in the past year.