Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  CME Group Inc    CME

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

CME Group Inc : CME Group profit falls; company sees new revenue in swaps

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/02/2013 | 10:27am EST

CME Group Inc, the world's largest futures exchange operator, reported a drop in first-quarter profit as trading in its lucrative energy products slumped and average revenue per trade fell.

The Chicago-based company also said on Thursday that April trading rose a respectable 8 percent at its five U.S. exchanges, and energy trading surged 20 percent.

Executives on a conference call said increased volatility and U.S. oil production indicated energy trading would remain strong.

But with trading in interest-rate contracts, by far CME's most active products, down 2 percent last month, Chief Executive Officer Phupinder Gill is focusing on capturing new revenue from international expansion and clearing over-the-counter swaps.

CME plans to open its first overseas exchange, in London, this summer, and Gill told analysts that trading in Asia hit a record high in the first quarter.

Closer to home, new U.S. rules next month will require a broader group of traders to clear most swaps, and Gill is counting on the mandates to bump up swaps clearing and futures trading at CME.

"We are working with hundreds of customers and many intermediaries to ensure operational readiness" by June 10, when a second new swaps mandate takes effect, said Gill, who marks his first anniversary as CME's chief this month.

About 270 firms will be ready to clear by then, executives said, with a bigger number in the pipeline for a third and final swaps-clearing mandate in September.

Regulators globally are pushing more over-the-counter derivatives into clearinghouses and onto regulated trading venues after problems in the $600 trillion swaps market exacerbated the 2007-2009 financial crisis.

CME said OTC clearing revenues for the quarter were $2.8 million, and analysts are looking for more.

"We continue to like CME, but think it will take more follow-through on recent positive volume trends and acceleration in OTC activity to move shares much higher in the near term," said UBS analyst Alex Kramm.

Shares of CME were down 1 percent at $59.55 in morning Nasdaq trading.

IN-LINE PROFIT

Net income declined in the first quarter to $235.8 million, or 71 cents a share, from $266.6 million, or 80 cents a share, a year earlier.

Excluding $12 million in expenses due to currency losses, the profit was 73 cents a share, in line with the analysts' average estimate, according to Thomson Reuters I/B/E/S.

Overall trading activity rose 1.4 percent in the quarter to 12.5 million contracts on an average day.

Trading in energy products, among CME's most lucrative, declined about 11 percent, and average revenue per contract fell to 78.5 cents from 81.1 cents a year earlier.

That helped drag down total sales to $718.6 million from $774.6 million.

The company had $1.9 billion in cash and $2.9 billion in debt at the end of the quarter.

CME Executive Chairman Terrence Duffy told analysts he thought it was unlikely that a proposed tax increase on futures traders would become law.

(Reporting by Ann Saphir; Editing by Jeffrey Benkoe and Lisa Von Ahn)

By Ann Saphir

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CME GROUP INC
01/19 CME : Clears Daily Record 1 Trillion in Mexican Peso Interest Rate Swaps
01/17 CME GROUP : Clears Daily Record 1 Trillion in Mexican Peso Interest Rate Swaps
01/12 CME : qbeats' Dynamic Content Pricing Goes Live with CME Direct
01/12 CME : Agricultural producers' economic sentiment soars post-election
01/10 CME : Agricultural producers' economic sentiment soars post-election
01/09 CME GROUP INC. : Announces Fourth-Quarter, Full-Year 2016 Earnings Release, Conf..
01/05 CME GROUP : Expands FX Offering with Launch of FX Monthly Futures Contracts
01/04 CME GROUP : Reached Record Average Daily Volume of 15.6 Million Contracts in 201..
2016 INSIDER TRADING ACTIVITY CME GROUP I : CME) – President Sold 14,886 shares..
2016DJNymex Trading Pits Shut Down, Marking End of an Era
More news
Sector news : Financial & Commodity Market Operators - NEC
01/19DJSINGAPORE EXCHANGE : 2Q Profit Rises As Trading Activity Picks Up
01/16 LONDON STOCK EXCHANGE : City minister says confident London can keep euro-cleari..
01/16DJLONDON STOCK EXCHANGE : LSE Group Denies Speculation About Post-Merger Relocatio..
01/12 LONDON STOCK EXCHANGE : LSE Boerse chiefs travel to meet top German politician -..
01/12 HONG KONG EXCHANGES AND CLEARING : LME electronic trading to reopen at 0600 GMT ..
More sector news : Financial & Commodity Market Operators - NEC
News from SeekingAlpha
05:20p DIVIDEND CHALLENGERS (AND NEAR-CHALL : 124 Increases Expected By March 31
01/19 The SEC's Reaction To High Frequency Trading
01/13 Which Sectors To Focus On As Q4 2016 Earnings Season Begins
01/11 INSIDERINSIGHTS.COM DAILY ROUND UP 1 : Och-Ziff Capital Management, Accelerate D..
01/05 CME Group boosts FX offerings
Advertisement
Financials ($)
Sales 2016 3 589 M
EBIT 2016 2 294 M
Net income 2016 1 506 M
Debt 2016 -
Yield 2016 3,96%
P/E ratio 2016 26,15
P/E ratio 2017 24,70
Capi. / Sales 2016 11,0x
Capi. / Sales 2017 10,4x
Capitalization 39 486 M
More Financials
Chart CME GROUP INC
Duration : Period :
CME Group Inc Technical Analysis Chart | CME | US12572Q1058 | 4-Traders
Full-screen chart
Technical analysis trends CME GROUP INC
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 127 $
Spread / Average Target 9,1%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Terrence A. Duffy Executive Chairman & Chief Executive Officer
Bryan T. Durkin President
Julie Holzrichter Chief Operating Officer
John W. Pietrowicz Chief Financial Officer
Kevin D. Kometer Chief Information Officer & Senior MD
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CME GROUP INC0.88%39 486
INTERCONTINENTAL EXCHA..0.96%33 930
HONG KONG EXCHANGES AN..0.81%29 543
DEUTSCHE BOERSE AG1.03%16 141
INTERACTIVE BROKERS GR..1.04%15 136
LONDON STOCK EXCHANGE ..3.29%13 020
More Results