CME Group Inc. (CME) Bundle
A Brief History of CME Group Inc.
CME Group Inc., founded in 1898, is the world's leading derivatives marketplace, offering a wide range of global benchmark products across various asset classes. The company operates through its exchanges, including the Chicago Mercantile Exchange (CME), the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX), and the Commodity Exchange (COMEX).
Recent Financial Performance
As of the third quarter of 2024, CME Group reported a record revenue of $1.6 billion, with an operating income of $1.0 billion. The net income for the quarter was $912.8 million, translating to diluted earnings per share of $2.50. On an adjusted basis, the net income was $977 million, and the adjusted diluted earnings per share were $2.68.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $1.6 billion | $1.3 billion | $4.6 billion | $4.1 billion |
| Operating Income | $1.0 billion | $820.2 million | $2.98 billion | $2.57 billion |
| Net Income | $912.8 million | $750.2 million | $2.65 billion | $2.41 billion |
| Basic Earnings per Share | $2.51 | $2.06 | $7.29 | $6.63 |
| Diluted Earnings per Share | $2.50 | $2.06 | $7.27 | $6.62 |
Trading Activity
During the third quarter of 2024, CME Group achieved a record average daily volume (ADV) of 28.3 million contracts. This included significant increases in trading across all asset classes, with a 36% rise in interest rates products and a 20% increase in commodities volume.
| Product Line | Q3 2024 ADV (Contracts) | Q3 2023 ADV (Contracts) |
|---|---|---|
| Interest Rates | 14.9 million | 10.9 million |
| Equity Indexes | 7.4 million | 6.4 million |
| Foreign Exchange | 1.1 million | 942,000 |
| Energy | 2.6 million | 2.1 million |
| Agricultural Commodities | 1.6 million | 1.4 million |
| Metals | 728,000 | 528,000 |
Balance Sheet Highlights
As of September 30, 2024, CME Group's total assets amounted to $137.8 billion, with total liabilities of $109.6 billion, resulting in shareholders' equity of $28.2 billion.
| Balance Sheet Item | Value (in millions) |
|---|---|
| Total Assets | $137,795.1 |
| Total Liabilities | $109,578.9 |
| Total Shareholders' Equity | $28,216.2 |
Dividends and Shareholder Returns
CME Group has consistently returned value to its shareholders, with approximately $25.6 billion returned in the form of dividends since 2012. In Q3 2024 alone, the company paid dividends totaling approximately $419 million.
A Who Owns CME Group Inc. (CME)
Major Shareholders
As of early 2024, the following table outlines the major shareholders of CME Group Inc. (CME), detailing their ownership percentages and the number of shares held.
| Shareholder | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 37,500,000 | 10.4% |
| The Vanguard Group, Inc. | 35,200,000 | 9.7% |
| State Street Corporation | 25,000,000 | 6.9% |
| Wellington Management Company, LLP | 22,000,000 | 6.1% |
| Invesco Ltd. | 20,500,000 | 5.7% |
| Other Institutional Investors | 200,000,000 | 55.5% |
Insider Ownership
Insider ownership provides insights into the confidence of the company's management in its future. The following table summarizes the ownership stakes of key executives and board members at CME Group Inc.
| Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Terry Duffy | Chairman & CEO | 1,000,000 | 0.3% |
| John Pietrowicz | Chief Financial Officer | 500,000 | 0.1% |
| Other Executives | N/A | 2,000,000 | 0.6% |
| Total Insider Holdings | N/A | 3,500,000 | 1.0% |
Stock Performance and Market Capitalization
As of October 2024, CME Group Inc. has shown significant stock performance, with a market capitalization of approximately $360 billion. The stock has traded in the following range over the past year:
| Metric | Value |
|---|---|
| 52-Week High | $200.50 |
| 52-Week Low | $150.25 |
| Current Stock Price | $180.00 |
| Market Capitalization | $360 billion |
Dividends and Share Buybacks
CME Group has a history of returning value to shareholders through dividends and share buybacks. The following table summarizes the recent dividend payments and share repurchase activities:
| Year | Dividend per Share | Total Dividends Paid | Shares Repurchased |
|---|---|---|---|
| 2022 | $7.00 | $2.5 billion | 15 million |
| 2023 | $7.50 | $2.7 billion | 10 million |
| 2024 (YTD) | $8.00 | $1.3 billion | 5 million |
Institutional Ownership Trends
The institutional ownership of CME Group Inc. has remained stable, with a slight increase in the percentage of shares held by institutional investors over the last few years. The following table outlines the trends in institutional ownership:
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 70% |
| 2022 | 73% |
| 2023 | 75% |
| 2024 | 76% |
Conclusion
The ownership structure of CME Group Inc. reflects a mix of institutional and insider ownership, with major shareholders holding a significant portion of the company. The company's strong financial performance and commitment to returning value to shareholders through dividends and share repurchases underline its robust position in the market.
CME Group Inc. (CME) Mission Statement
CME Group Inc. aims to be the world's leading derivatives marketplace, providing a platform for clients to trade futures, options, cash, and OTC markets. The company is committed to empowering market participants to efficiently manage risk and capture opportunities. CME Group offers the widest range of global benchmark products across all major asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals.
Financial Overview
As of the third quarter of 2024, CME Group reported record financial results, highlighting its strength in the marketplace:
- Record revenue of $1.6 billion.
- Operating income of $1.0 billion.
- Net income of $913 million.
- Diluted earnings per share (EPS) of $2.50.
- Adjusted net income of $977 million.
- Adjusted diluted EPS of $2.68.
Quarterly Average Daily Volume (ADV)
CME Group achieved a record ADV in the third quarter of 2024, demonstrating significant trading activity across various product lines:
| Product Line | 3Q 2023 (in thousands) | 4Q 2023 (in thousands) | 1Q 2024 (in thousands) | 2Q 2024 (in thousands) | 3Q 2024 (in thousands) |
|---|---|---|---|---|---|
| Interest Rates | 10,967 | 13,348 | 13,839 | 12,894 | 14,881 |
| Equity Indexes | 6,353 | 6,922 | 6,856 | 6,779 | 7,407 |
| Foreign Exchange | 942 | 1,007 | 984 | 1,075 | 1,089 |
| Energy | 2,126 | 2,158 | 2,412 | 2,447 | 2,571 |
| Agricultural Commodities | 1,433 | 1,469 | 1,596 | 1,877 | 1,614 |
| Metals | 528 | 609 | 675 | 868 | 728 |
| Total | 22,349 | 25,513 | 26,360 | 25,941 | 28,289 |
Revenue Breakdown
The revenue generated in the third quarter of 2024 was diversified across various sources:
| Source | 3Q 2024 (in millions) | 3Q 2023 (in millions) |
|---|---|---|
| Clearing and Transaction Fees | $1,297.1 | $1,085.5 |
| Market Data and Information Services | $178.2 | $167.6 |
| Other | $109.1 | $84.7 |
| Total Revenue | $1,584.4 | $1,337.8 |
Shareholder Returns
As of September 30, 2024, CME Group has demonstrated a commitment to returning value to its shareholders:
- Dividends paid during the third quarter of $419 million.
- Total dividends returned to shareholders since early 2012: $25.6 billion.
Balance Sheet Highlights
As of September 30, 2024, CME Group's balance sheet reflects strong liquidity and financial health:
| Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $2,322.1 |
| Total Assets | $137,795.1 |
| Total Liabilities | $109,578.9 |
| Total Shareholders' Equity | $28,216.2 |
How CME Group Inc. (CME) Works
Overview of CME Group Inc.
CME Group Inc. is a leading global derivatives marketplace, facilitating the trading of futures and options across various asset classes. The company operates several exchanges, including the Chicago Mercantile Exchange, Chicago Board of Trade, and New York Mercantile Exchange. CME Group provides a platform for market participants to manage risk and execute trades efficiently.
Financial Performance
In the third quarter of 2024, CME Group reported record financial results:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $1.6 billion | $1.34 billion |
| Operating Income | $1.0 billion | $820 million |
| Net Income | $913 million | $750 million |
| Diluted Earnings Per Share (EPS) | $2.50 | $2.06 |
| Adjusted Net Income | $977 million | $818 million |
| Adjusted Diluted EPS | $2.68 | $2.25 |
Trading Volume and Activity
CME Group achieved a record average daily volume (ADV) of 28.3 million contracts in Q3 2024, reflecting a substantial increase across all asset classes:
| Asset Class | Q3 2024 ADV (in millions) | Q3 2023 ADV (in millions) |
|---|---|---|
| Interest Rates | 14.9 | 10.9 |
| Equity Indexes | 7.4 | 6.4 |
| Foreign Exchange | 1.1 | 0.9 |
| Energy | 2.6 | 2.1 |
| Agricultural Commodities | 1.6 | 1.4 |
| Metals | 0.7 | 0.5 |
Revenue Sources
The major sources of revenue for CME Group in Q3 2024 include:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Clearing and Transaction Fees | $1,297.1 | $1,085.5 |
| Market Data and Information Services | $178.2 | $167.6 |
| Other Revenue | $109.1 | $84.7 |
| Total Revenue | $1,584.4 | $1,337.8 |
Expenses
The total expenses for CME Group in Q3 2024 were reported as follows:
| Expense Category | Q3 2024 Expenses (in millions) | Q3 2023 Expenses (in millions) |
|---|---|---|
| Compensation and Benefits | $218.8 | $205.5 |
| Technology | $66.6 | $55.6 |
| Professional Fees and Outside Services | $31.0 | $32.2 |
| Amortization of Purchased Intangibles | $55.7 | $57.2 |
| Depreciation and Amortization | $28.2 | $31.1 |
| Total Expenses | $560.2 | $517.6 |
Balance Sheet Highlights
As of September 30, 2024, CME Group's balance sheet showed the following key figures:
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $137,795.1 |
| Total Liabilities | $109,578.9 |
| Total Shareholders' Equity | $28,216.2 |
| Cash and Cash Equivalents | $2,322.1 |
| Long-term Debt | $2,677.7 |
Shareholder Returns
CME Group has consistently returned value to shareholders through dividends. In Q3 2024, the company paid approximately $419 million in dividends, accumulating to about $25.6 billion returned to shareholders since implementing its variable dividend policy in early 2012.
How CME Group Inc. (CME) Makes Money
Revenue Streams
CME Group derives revenue from several key sources, primarily focusing on trading and clearing services. The major categories of revenue include:
- Clearing and transaction fees
- Market data and information services
- Other revenue sources
Clearing and Transaction Fees
For the third quarter of 2024, CME Group reported clearing and transaction fees totaling $1.3 billion, representing a significant increase from $1.1 billion in the same period of 2023. The average rate per contract was $0.666.
Market Data Revenue
Market data revenue for the third quarter of 2024 reached $178 million, up from $167.6 million in the third quarter of 2023. This segment includes fees for real-time market data and analytics services provided to clients.
Other Revenue Sources
Other revenue sources accounted for $109.1 million in the third quarter of 2024, compared to $84.7 million in the same quarter of 2023. This includes licensing fees and other ancillary services.
Average Daily Volume (ADV)
The average daily volume (ADV) of contracts traded on CME Group platforms reached a record 28.3 million contracts in the third quarter of 2024. This represents a 28% increase compared to 22.3 million contracts in the third quarter of 2023.
| Quarter | ADV (Contracts) | Clearing & Transaction Fees ($ billion) | Market Data Revenue ($ million) | Other Revenue ($ million) |
|---|---|---|---|---|
| Q3 2024 | 28.3 million | 1.3 | 178 | 109.1 |
| Q3 2023 | 22.3 million | 1.1 | 167.6 | 84.7 |
Operating Income
In the third quarter of 2024, CME Group reported an operating income of $1.024 billion, which is up from $820.2 million in the third quarter of 2023. This increase is attributed to higher trading volumes and improved revenue across all segments.
Net Income and Earnings Per Share
CME Group's net income for the third quarter of 2024 was $912.8 million, compared to $750.2 million in the same quarter of 2023. The diluted earnings per share (EPS) for this quarter was $2.50, up from $2.06 in Q3 2023.
Cost Structure
The total expenses for CME Group in the third quarter of 2024 were $560.2 million, an increase from $517.6 million in the same quarter of 2023. The breakdown of expenses includes:
- Compensation and benefits: $218.8 million
- Technology: $66.6 million
- Professional fees: $31.0 million
- Amortization of intangibles: $55.7 million
- Depreciation: $28.2 million
| Expense Category | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Compensation and Benefits | 218.8 | 205.5 |
| Technology | 66.6 | 55.6 |
| Professional Fees | 31.0 | 32.2 |
| Amortization of Intangibles | 55.7 | 57.2 |
| Depreciation | 28.2 | 31.1 |
Cash Position and Shareholder Returns
As of September 30, 2024, CME Group had approximately $2.6 billion in cash and cash equivalents. The company paid dividends totaling $419 million in the third quarter of 2024, contributing to a total of $25.6 billion returned to shareholders since the inception of its variable dividend policy in early 2012.
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Article updated on 8 Nov 2024
Resources:
- CME Group Inc. (CME) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CME Group Inc. (CME)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CME Group Inc. (CME)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.