Financial Data and Key Metrics Changes - In 2024, CME Group achieved record revenue of $6.1 billion, a 10% increase compared to 2023, driven by strong average daily volume (ADV) of 26.5 million contracts per day, up 9% from the previous year [17][18] - Adjusted operating income for 2024 was $4.2 billion, reflecting a 12% year-over-year increase, with an adjusted operating margin of 68.3% [17] - The company reported adjusted net income of $3.7 billion, up 10% from 2023, and diluted earnings per share (EPS) of $10.26, the highest in its history [18] - For Q1 2025, CME Group's ADV reached 29.8 million contracts per day, setting a new record, with revenue surpassing $1.6 billion, a 10% increase year-over-year [19] Business Line Data and Key Metrics Changes - CME Group saw annual ADV records across its interest rate, foreign exchange, metals, and agricultural complexes in 2024 [17] - The company reported a year-to-date ADV of 31 million contracts per day in 2025, an 18% increase from the same period in 2024, with growth across all six asset classes [17] Market Data and Key Metrics Changes - CME Group's market position remains strong, with 99.99% of the business in SOFR contracts, despite competition from new exchanges like FMX, which has negligible trading volume [35][36] - The company continues to create significant efficiencies for clients, generating approximately $24 billion in daily savings in interest rates alone [36] Company Strategy and Development Direction - CME Group emphasizes its commitment to providing risk management tools and growing earnings for shareholders, focusing on operational efficiencies and client value propositions [28][36] - The company has a flexible capital return policy, including a quarterly dividend of $1.25 per share, up 9% from the previous year, and a share repurchase program of up to $3 billion [19][20] Management's Comments on Operating Environment and Future Outlook - Management highlighted that 2024 was the best year in CME Group's history, driven by global market participants seeking stability amid economic uncertainty [16] - The company remains optimistic about its future, with strong performance continuing into 2025 and a robust capital return strategy in place [21][20] Other Important Information - CME Group has returned over $28 billion to shareholders since adopting its variable dividend policy in 2012, including $3.8 billion in the last year [20] - The company plans to align its annual variable dividend timing with the Q1 regular dividend payment starting in 2026 [19] Q&A Session Summary Question: Impact of Passive Mutual Funds on Corporate Governance - A shareholder raised concerns about the growing ownership concentration of passive index funds and its implications for long-term corporate planning [24][25] - Management responded that they do not see inherent conflicts of interest and focus on providing risk management tools and growing earnings for shareholders [26][28] Question: Competition from New Exchanges - A shareholder inquired about the competition from FMX and its impact on CME Group [35] - Management noted that FMX's trading volume is minimal and emphasized CME's strong market position and efficiency in risk management [36] Question: Future Tax Proposals in Chicago - A shareholder asked about potential future tax proposals affecting trading [40] - Management clarified that the city of Chicago lacks the legal authority to impose such taxes, and state officials have opposed any transaction taxes on exchanges [41] Question: Status of Ongoing Litigation - A shareholder inquired about the status of a lawsuit involving the company [41] - Management indicated that the litigation is ongoing, with a court date set for July 7, and expressed confidence in their position [42]

Core Insights - CME Group reported an all-time monthly average daily volume (ADV) record of 35.9 million contracts in April 2025, representing a 36% increase year-over-year [1][2][3] Volume Growth by Product - Interest rate ADV grew 46% to 18.4 million contracts in April 2025 [2][4] - Equity index products reached a record monthly ADV of 9.7 million contracts [2][4] - Metals products also set a new record with an ADV of 1 million contracts [2][4] - SOFR futures achieved a monthly volume record of 6 million contracts [2] - Micro E-mini Nasdaq-100 futures reached 2.3 million contracts, while Micro E-mini S&P 500 futures hit 2 million contracts [2] - U.S. Treasury options recorded an ADV of 1.8 million contracts [2] International Volume Performance - International ADV reached 10.9 million contracts for the first time, driven by record EMEA ADV of 7.8 million contracts, Asia ADV of 2.6 million contracts, and Latin American ADV of 235,000 contracts [3] Detailed Product Highlights - Energy ADV was 3.3 million contracts, with WTI Crude Oil futures increasing 29% to 1.3 million contracts [4] - Agricultural ADV was 2.1 million contracts, with corn futures increasing 18% to 514,000 contracts [4] - Foreign Exchange ADV reached 1.3 million contracts, with Japanese Yen futures increasing 43% to 243,000 contracts [4] - Cryptocurrency ADV surged 129%, with Micro Bitcoin futures increasing 115% to 78,000 contracts [4] Additional Market Statistics - BrokerTec U.S. Repo average daily notional value (ADNV) increased 28% to a record $378 billion [7] - EBS Spot FX ADNV increased 46% to $89.3 billion [7] - Customer average collateral balances for cash collateral were $78.6 billion and for non-cash collateral were $173.7 billion [7]

Group 1 - CME Group is a member of the Finance sector, which includes 858 individual stocks and holds a Zacks Sector Rank of 2 [2] - CME Group currently has a Zacks Rank of 2 (Buy), with a 7.5% increase in the consensus estimate for full-year earnings over the past three months, indicating improved analyst sentiment [3] - Year-to-date, CME Group has gained approximately 19.3%, significantly outperforming the Finance sector average gain of 1.2% [4] Group 2 - CME Group belongs to the Securities and Exchanges industry, which consists of 7 companies and is ranked 8 in the Zacks Industry Rank, with an average gain of 12.4% this year [5] - Banco De Chile, another outperforming stock in the Finance sector, has increased by 30.2% year-to-date and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Banks - Foreign industry, which includes Banco De Chile, has 66 stocks and is ranked 11, with a year-to-date gain of 14.7% [6]

Group 1 - CME Group is initiated with a Strong Buy rating and a price target of $332.96, highlighting its position as a global leader in futures and options trading [1] - The company operates in an institutionalized arena where trillions in futures and options are traded, routed, and cleared daily, emphasizing its critical role in the financial markets [1] - Moretus Research focuses on identifying companies with durable business models and mispriced cash flow potential, applying a structured framework for investment analysis [1] Group 2 - Moretus Research combines rigorous fundamental analysis with a judgment-driven process, aiming to provide clarity and actionable insights for serious investors [1] - The research emphasizes comparability, simplicity, and relevance in valuation, tailored to each company's business model and capital structure [1] - The coverage tends to favor underappreciated companies undergoing structural changes or temporary dislocations, where disciplined analysis can lead to asymmetric returns [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 - OR - ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file n ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: CME Group - CME Group currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, CME shares increased by 1.44%, while the Zacks Securities and Exchanges industry rose by 2.89% [5] - In a longer timeframe, CME shares have appreciated by 12.3% over the past quarter and 29.92% over the last year, outperforming the S&P 500, which saw declines of -7.64% and gains of 10.16% respectively [6] Trading Volume - CME's average 20-day trading volume is 2,997,252 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, 10 earnings estimates for CME have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $10.53 to $11.11 [9] - For the next fiscal year, 9 estimates have moved higher, while 1 has been revised downwards [9] Conclusion - Considering the positive price trends, strong earnings outlook, and favorable momentum score, CME Group is identified as a solid momentum pick for investors [11]

I'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.I prefer steadily growing companies with high free cash flow margins, dividend stocks and ...

Group 1 - CME offers derivative exchange services to the financial market, enabling clients to trade futures, options, cash, and OTC products [1] - Through its derivatives exchanges and clearing house, CME provides financial vehicles for capital market participants to hedge and mitigate risks [1] - The company is positioned to benefit from increased economic activity, which may drive demand for its services [1]

Market Catalysts - Catalysts are crucial in investing, as they can lead to significant price movements in stocks, such as regional banks and biotechs surging on takeover offers [3][4] - A major event scheduled for May 7 is anticipated to trigger substantial market changes, with preparations being made for this potential shift [4][22] CME Group Inc. (CME) - CME Group reported a 10% increase in revenues to $1.6 billion and a 12% rise in earnings per share (EPS) to $2.80 [7] - The exchange has seen a surge in trading volumes, averaging 40 million contracts daily in April, compared to 29.8 million in the first quarter [8] Intuit Inc. (INTU) - Intuit is expected to benefit from upcoming tax changes, with shares having previously risen 38% during the first year of Trump's presidency [11][12] - The stock trades at a forward earnings multiple of 30X, which is 15% below its five-year average, indicating potential for growth as tax discussions progress [14] U.S. Bancorp (USB) - U.S. Bancorp is recognized for its strong management and conservative underwriting, with a return on equity (ROE) of 13%, significantly above the industry median [15] - Recent market fears have pushed USB shares to low levels, presenting an opportunity for a potential "V"-shaped recovery, with expected upside of 25% to 50% [17][18] Market Cash Reserves - Investors currently hold a record $7 trillion in cash, with private equity alone holding at least $2.62 trillion, indicating a potential influx into the stock market [21]

Industry Overview - Cryptocurrencies like Bitcoin and Ethereum are driven by blockchain technology, which provides enhanced security through a decentralized and tamper-resistant database [1] - The safety and decentralization of blockchain have contributed to the growth of cryptocurrencies, with positive developments such as the SEC's repeal of an accounting rule and the dropping of lawsuits against Coinbase and Robinhood [2] - The liberal policies of the Trump administration, including an executive order to study cryptocurrency regulations and the creation of a crypto reserve, are favorable for the cryptocurrency market [3] Market Performance - Despite inherent volatility, cryptocurrencies have shown resilience amid equity sell-offs, with Bitcoin trading above $92,000, a significant increase from $76,000 in early April [4] - Over the past week, Bitcoin increased by 9.32%, while Ethereum, Solana, Cardano, Dogecoin, and XRP surged by 9.5%, 10.2%, 11.6%, 11%, and 2.5% respectively [4] Company Highlights - CME Group, the largest futures exchange, reported a record average daily volume of 29.8 million contracts in Q1 2025, up 13% year-over-year, driven by growth across all asset classes [6] - CME Group's clearing and transaction fees significantly contribute to its revenue, with expectations of continued growth due to increased electronic trading volume and interest in crypto assets [8] - BIT Mining Limited, a leading cryptocurrency miner, produced 41.55 Bitcoin in March 2025, with a cost per BTC mined of approximately $65,831, and is expanding operations in Ohio and Ethiopia [10][11][12] - Cannan, another cryptocurrency mining company, generated $32.5 million in Bitcoin mining revenue in 2024 and expects revenues between $900 million and $1.1 billion in 2025, supported by new product launches [13][14]