Record Europe, Middle East and Africa (EMEA) ADV of 6.2M, up 30% in Q3 2024 Asia Pacific (APAC) ADV of 1.8M, up 28% LONDON and SINGAPORE, Oct. 14, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its international average daily volume (ADV) reached a record 8.4 million contracts in Q3 2024, up 29% year on year. Reflecting all trading reported outside the United States, the record volume was driven by growth across all asset classes, with the highest trading v ...

Core Insights - US big tech companies have experienced significant growth and high profit margins over the past decade, attracting substantial investor interest [1] Group 1: Company Performance - The rapid growth of US big tech companies has led many investors to focus heavily on these firms, potentially overlooking other investment opportunities [1] Group 2: Investor Behavior - Investors have increasingly bet on the performance of these tech giants, which may lead to a narrow investment perspective [1]

The 10-year yield was up about 2 basis points to 4%, it's highest since early August and a big turnaround from its 2024 low of around 3.58% reached a little more than a month ago. The yield on the 2-year Treasury was up over 6 basis points to 3.99%. Yields move inversely to prices. One basis point equals 0.01%. The 10-year Treasury yield, a benchmark for mortgages and car loans, jumped back above 4% on Monday amid stronger labor market readings and despite the start of a Federal Reserve rate-cutting campaig ...

Core Viewpoint - CME Group's shares are currently trading at a discount compared to the Zacks Securities and Exchange industry, with a forward price-to-earnings ratio of 22.46X, lower than the industry average of 23.96X [1] Valuation and Performance - CME Group has a market capitalization of $80.5 billion and an average trading volume of 2 million shares over the last three months [1] - CME shares have increased by 14% in the past three months, underperforming the industry but outperforming the sector and the Zacks S&P 500 composite [2] - The stock is trading above its 50-day moving average, indicating a bullish trend and is near the high end of its 52-week range [4] Analyst Sentiment and Earnings Estimates - The Zacks Consensus Estimate for 2024 and 2025 earnings has risen by 0.8% and 0.4%, respectively, in the past week, reflecting positive analyst sentiment [5] Growth Factors - CME Group's organic growth is supported by increasing clearing and transaction fees, with an estimated three-year CAGR of 4.7% for the top line from 2023 to 2026 [6] - The company holds a 90% market share in global futures trading and clearing services, benefiting from growth in electronic trading volume and higher adoption of crypto assets [7] - Clearing and transaction fees are expected to grow at a three-year CAGR of 4.2% from 2023 to 2026 due to increased volatility [7] Financial Management and Shareholder Returns - CME is focused on improving margins through cost management, with core expenses projected to be $1.585 billion in 2024 [8] - The company has increased dividends at a five-year CAGR of 8.9%, with a dividend yield of 2.1%, surpassing the industry average of 1.5% [9] - CME's free cash flow conversion has remained above 85% over recent quarters, indicating strong earnings [9] Efficiency Metrics - Return on invested capital (ROIC) has hovered around 10% in recent years, but the trailing 12-month ROIC was 0.5%, below the industry average of 4.9% [10] - Return on equity (ROE) has been improving, with a trailing 12-month ROE of 12.8%, slightly below the industry average of 13.2% [11] Market Position and Future Outlook - CME Group is the largest futures exchange globally by trading volume and notional value, with plans to expand futures products in emerging markets and diversify its derivative product lines [14] - The average target price from 17 analysts is $216.76 per share, suggesting a potential downside of 3.1% from the recent closing price of $223.57 [14]

CHICAGO, Oct. 2, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced plans to launch options on six E-mini Select Sector futures, as well as on Dow Jones U.S. Real Estate Index futures, on October 28, pending regulatory review. "These new options on our liquid sector futures are designed to help clients manage volatility in individual equity sectors, particularly amid significant dispersion across sectors this year," said Paul Woolman, Global Head of Equity Index Pro ...

Core Insights - CME Group reported record average daily volume (ADV) of 28.3 million contracts in Q3 2024, representing a 27% increase year-over-year, and 28.4 million contracts in September 2024, up 25% year-over-year [1][2][3] Q3 2024 Highlights - Record Interest Rate ADV reached 14.9 million contracts, with U.S. Treasury complex hitting 8.4 million contracts and SOFR futures at 4.1 million contracts [2][3] - Equity Index ADV was 7.4 million contracts, an increase of 17%, with record Q3 Equity Index options ADV of 1.6 million contracts [3][4] - Energy ADV increased by 21% to 2.6 million contracts, with record Q3 Energy options ADV of 425,000 contracts [3] - Agricultural ADV reached a record of 1.6 million contracts, with corn futures ADV increasing by 28% to 378,000 contracts [3] - International ADV was 8.4 million contracts, with EMEA ADV at 6.2 million contracts, Asia ADV up 28%, and Latin America up 11% [3] September 2024 Highlights - Record September Interest Rate ADV of 14.8 million contracts, with U.S. Treasury futures and options ADV at 7.1 million contracts [3][4] - Record September SOFR futures and options ADV of 6.9 million contracts, and Interest Rate options ADV of 3.4 million contracts [3] - International ADV increased by 30% to 8.8 million contracts, with record EMEA ADV of 6.5 million contracts [4]

CHICAGO, Oct. 1, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its Bitcoin Friday futures (BFF) have launched and are available for trading. 31,498 contracts traded across two different contract weeks. The first trade, a block, took place on Sunday, September 29 and was executed by Galaxy and Marex. "With more than 31,000 contracts traded on day one, Bitcoin Friday futures have become our most successful crypto futures launch ever," said Giovanni Vicioso, ...

CHICAGO, Sept. 30, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it will expand its battery metals suite and launch a Spodumene CIF China (Fastmarkets) Futures contract on October 28, 2024, pending regulatory review. "Our suite of cobalt and lithium products serve an important role in the rapidly evolving battery metals space, with industry adoption accelerating," said Jin Hennig, Global Head of Metals at CME Group. "With this launch of Spodumene futures, ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial . Analyst's Disclosure: I/we have a beneficial long position in the shares of TPL, LB, GE, UNP, CME, DHR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other tha ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial . It's time to talk about the Fed, which may be one of the biggest components of the "big picture" we discuss in most of my articles. After all, the world's most influential central bank controls the main interest rate of the biggest Analyst's Disclosure: I/we have a beneficial l ...