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]