CME Group Announces Trading, Profit Rises
CME Group reported in its third quarter earnings report today a higher than expected quarterly profit.
The exchange's third-quarter net income increased 29 percent to $316.1 million ($4.74 per share), up from $244.3 million ($3.66 per share) from the previous year. Market volatility contributed to a rise in the exchange's interest rate and equity index contracts.
Analysts estimates averaged $4.69 a share.
CME also noted that an average 14.7 million contracts changed hands daily in the quarter, a 27 percent increase from the previous year.
Revenue rose to a quarterly record of $874 million, but the average revenue per contract fell to 77.9 cents a contract last quarter from 81 cents a year earlier
Looking ahead, CME Group CEO Craig Donahue said that trading growth could be affected by the European debt crisis and
While trading rose 27 percent in the quarter, CME's average fee per contract has fallen, the European debt crisis and a weak U.S. economic outlook could harm prospects for trading growth."
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