Financial Data and Key Metrics Changes - CME Group generated revenue of $1,500,000,000, down 3% from the strong third quarter in 2024 [11] - Adjusted net income and adjusted diluted earnings per share were $978,000,000 and $2.68 per share, slightly above the previous year's third quarter [12] - Average daily volume was 25,300,000 contracts, the second highest in CME's history for a third quarter [5][6] Business Line Data and Key Metrics Changes - The crypto complex traded a record 340,000 contracts per day, up over 225% year-over-year [6] - Market data revenue reached over $200,000,000 for the first time, up 14% [11][12] - New products with record volume included credit futures, one ounce gold futures, and agricultural weekly options [7] Market Data and Key Metrics Changes - Open interest at quarter-end was 126,000,000 contracts, the highest for September in the last five years [6] - WTI futures market share increased to 76% from 74% in the previous quarter [70] - Natural gas complex grew 2%, led by nat gas options up 12% [71] Company Strategy and Development Direction - CME Group is focused on innovation and expanding product offerings, including 24/7 trading of cryptocurrency futures and options [8][9] - A partnership with FanDuel aims to develop and distribute event-based contracts, enhancing retail strategy [9][20] - The company is extending its cross-margin agreement with DTCC to increase margin savings for clients [8] Management Comments on Operating Environment and Future Outlook - Management noted strong customer demand for products, with growing open interest and records in large open interest holders [13] - The outlook for energy markets remains positive, with continued growth in crude and natural gas [73] - Management emphasized the importance of credibility in markets and the potential for growth in retail offerings without necessarily pursuing acquisitions [20] Other Important Information - Capital expenditures for the third quarter were approximately $19,000,000, with cash at the end of the quarter around $2,600,000,000 [12] - The company paid dividends of $455,000,000 in the third quarter and approximately $3,500,000,000 over the first nine months of the year [12] - The average cash balance in the third quarter was $135,000,000, with a 30% cash minimum affecting client allocation decisions [105][106] Q&A Session Summary Question: Can you talk about your long-term retail strategy? - Management highlighted the importance of the partnership with FanDuel, which provides access to 13,000,000 potential accounts, and emphasized the credibility of CME in the retail market [16][20] Question: Is CME considering offering sports event contracts? - Management stated that the decision to list sports events depends on regulatory approval and expressed readiness to offer such contracts if permitted [30][48] Question: What is the outlook for energy markets? - Management noted that while energy volumes were down in the quarter, there is still strong growth potential in crude and natural gas markets, particularly in Europe and Asia [66][73] Question: What are the proceeds from the Ultra sale and capital deployment plans? - Proceeds from the sale were about $1,500,000,000, with management planning to present recommendations for capital use to the board soon [80][82] Question: Can you elaborate on the 24/7 trading initiative? - Management indicated that 24/7 trading for crypto is set for 2026, with ongoing discussions about potential expansion to other asset classes based on client demand [96][100]