{"id":24307,"date":"2023-04-26T15:27:31","date_gmt":"2023-04-26T15:27:31","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/cme-groups-quarterly-profit\/"},"modified":"2023-04-26T15:29:11","modified_gmt":"2023-04-26T15:29:11","slug":"cme-profit-rises-as","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/cme-profit-rises-as\/","title":{"rendered":"CME profit rises as volatility spurred risk hedging"},"content":{"rendered":"<p>(Reuters) -CME Group Inc on Wednesday posted first-quarter profits that beat Wall Street expectations, as traders turned to the exchange operator&#8217;s hedging products to navigate market volatility related to worries about the banking sector and slowing macroeconomic growth.<\/p>\n<p>The recent regional banking failures along with the U.S. Federal Reserve&#8217;s continued rate hike cycle has roiled markets, pushing demand for hedging tools in an increasingly uncertain macroeconomic environment as investors try to dump risky assets.<\/p>\n<p>&#8220;Throughout the entire quarter, there were shifting perceptions about the Fed&#8217;s near-term rate path as well as significant banking concerns in March,&#8221; CME Chief Executive Officer Terry Duffy said on a call with analysts.<\/p>\n<p>To help mitigate those risks, many firms turned to CME&#8217;s interest rate futures, which saw volumes rise 16% from a year earlier to a record 14.5 million contracts, Duffy said.<\/p>\n<p>Overall average daily volumes were up 4% at 26.9 million contracts.<\/p>\n<p>The exchange and clearinghouse operator&#8217;s net income, stripping out one-time items like M&amp;A costs, was $2.42 per share, 4 cents above the consensus estimate of analysts, Refinitiv IBES data showed.<\/p>\n<p>The beat was driven in part by higher-than-anticipated revenue per contract, which benefited clearing and transaction fees, Piper Sandler analyst Richard Repetto said in a client note.<\/p>\n<p>Clearing and transaction revenues in the quarter were up 5.5% at $1.2 billion. Overall revenue rose 7.1% from a year ago to $1.4 billion.<\/p>\n<p> (Reporting by John McCrank in New York and Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra Eluri and Richard Chang)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/cme-groups-quarterly-profit\/file-photo-men-enter-the-cme-group-offices-in-new\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0GP-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P0GP-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) -CME Group Inc on Wednesday posted first-quarter profits that beat Wall Street expectations, as traders turned to the exchange operator&#8217;s hedging products to navigate market volatility related to worries about the banking sector and slowing macroeconomic growth. The recent regional banking failures along with the U.S. Federal Reserve&#8217;s continued rate hike cycle has roiled [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":24308,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-24307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0GP-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=24307"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24307\/revisions"}],"predecessor-version":[{"id":24714,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/24307\/revisions\/24714"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/24308"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=24307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=24307"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=24307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}