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CME Group (CME) Records Second-Highest Monthly ADV in August

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CME Group (CME - Free Report) reported average daily volume (“ADV”) of 24.3 million contracts for August 2019, up 53% year over year. This marks the second-highest monthly ADV. There were 22 trading days in August. Options volume of 4.7 million contracts per day in August 2019 improved 49% year over year.

Interest rate volume of 13.7 million contracts per day shot up 59%. Of this, Treasury futures were a record 6.9 million, up 46% year over year. Metals volume of record 0.9 million contracts per day increased 41%.

Equity index volume of nearly 5 million contracts per day increased 109% whereas Agricultural volume of 1.5 million contracts per day witnessed an increase of 4% year over year. However, Energy volume of 2.5 million contracts increased 25% and Foreign exchange volumes contracted 7% to 0.8 million contracts per day.

The company witnessed 12 trading days with volume crossing more than 25 million contracts.

CME group boasts 90% market share of the global futures trading and clearing services. Given its sturdy market position with diverse derivative product lines and global reach, ADV should continue to retain the growth momentum. Also, increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. The company currently carries a Zacks Rank #3 (Hold).

Shares of CME Group have outperformed the industry quarter to date. While the company has rallied 13.9%, the industry has registered 11.5% increase. Efforts to expand futures products in emerging markets, non-transaction related opportunities, OTC offerings, cross-sell through alliances, strong global presence and solid liquidity should help the stock retain the bull run.


Recently, Nasdaq (NDAQ - Free Report) reported solid volumes for August 2019. While U.S. equity options volume increased 5.4% year over year to 157 million contracts, European options and futures volume rose 33.9% year over year to 7.5 million contracts.

Stocks to Consider

Some better-ranked stocks from the finance sector are Cboe Global Markets (CBOE - Free Report) and CNA Financial (CNA - 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.

Cboe Global is one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading. The company came up with positive surprise of 5.61% in the last reported quarter.

CNA Financial provides commercial property and casualty insurance products, primarily in the United States. The company came up with a positive surprise of 6.93% in the last reported quarter.

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