CME Earnings Preview: Robust Trade Volumes To Drive Revenues In Q1

+4.03%
Upside
219
Market
228
Trefis
CME: CME Group logo
CME
CME Group

CME Group (NASDAQ:CME) is scheduled to announce its first quarter fiscal 2016 earnings on Thursday, April 28. The exchange operator started the year on a good note, with daily trade volumes up 13% year on year to 17 million contracts per day, primarily due to a rise in average daily volumes (ADVs) of equities (+28% y-o-y), metals (+23%) and energy (+18% y-o-y). Moreover, the company also implemented a transaction fee increase across all six product lines at the beginning of January. Consequently, we expect transaction-based revenues to increase in the quarter. In terms of non-transaction businesses, the growth is expected to be lukewarm due to changes in the pricing structure, which will likely reduce the company’s market data subscriber count.

pme

Notes:
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2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for CME Group.

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