CME’s trading volumes drive full-year revenues

Exchange group added $3 billion to its full-year revenues in 2016.

CME’s full year revenues in 2016 grew 8% compared to the prior year driven by surge in trading volumes, according to chief executive officer, Terry Duffy.

The exchange group added $3 billion to sales in 2016, as it reached a record average daily volume of 15.6 million contracts, up 12% from 2015.

Duffy explained: “Our trading volume for the fourth quarter and full-year 2016 increased more than 12%, driving double-digit earnings growth over both periods.”

Clearing and transaction fee revenues at CME totalled $3 billion in 2016, a 9% increase from the year prior.

The group’s open interest also exceeded 120 million contracts for the first time in the fourth quarter, CME said.

CME saw average daily volume (ADV) soar across its product line, with foreign exchange ADV increasing 13% in the fourth quarter in 2016, compared to the same period in 2015.

Earlier this month, CME announced the expansion of its FX business with the launch of six monthly futures contracts.

Global head of FX at CME Group, Paul Houston, explained the launch is in response to feedback from global clients who want to trade FX futures.

“CME is a primary FX market, offering users the ability to trade FX in an efficient and transparent manner. Our current number of large open interest holders in foreign exchange show record levels of participation in our marketplace,” he said.

“Looking ahead, the opportunity to provide solutions to our global clients has never been greater… by driving volume growth and remaining very focused on expense discipline we were able to declare $1.9 billion of dividends for our shareholders,” Duffy concluded. 

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