CME’s Q2 trading drop hits revenues

Falling trading volumes have hit CME Group’s revenues in the second quarter, following a global trend of exchanges seeing their transactions businesses decline in profitability during the period.

Falling trading volumes have hit CME Group’s revenues in the second quarter, following a global trend of exchanges seeing their transactions businesses decline in profitability during the period.

Second quarter average daily volume (ADV) was 12.6 million contracts, down 12% from the same period in 2013.

Clearing and transaction fees subsequently fell by 12% also to US$609 million

Much like rivals Deutsche Boerse and Nasdaq OMX however, the Chicago-based group did see a rise in its market data and information services business.

Those increases failed to help CME follow its counterparts by propping up its overall results though, as revenue fell to US$732 million from US$816 million in Q2 2013.

“Historically low levels of volatility impacted the overall market during the second quarter, although the effect on CME was lessened by the diversity of our product lines,” said CME Group executive chairman and president, Terry Duffy. 

While the group saw significant activity drops in equity and foreign exchange derivatives, interest rates trading did pick up during the quarter.

CME also reported an increase in activity from European customers, which accounted for 24% of business.

“We continue to see positive economic signs that could potentially lead to a more traditional Federal Reserve monetary policy,” continued Duffy.

«