CME Group International Average Daily Volume Reached Quarterly Record of 7.8 Million Contracts in Q2 2024

Rhea-AI Summary

CME Group announced a record international average daily volume (ADV) of 7.8 million contracts for Q2 2024, marking a 23% increase year-over-year. Growth was seen across all asset classes, led by interest rate and equity products, with notable gains in commodities: metals up 50%, energy up 40%, and agricultural products up 25%.

EMEA led the regions with a record 5.8 million contracts, a 28% rise, driven by foreign exchange and interest rate products, up 27% and 26% respectively. APAC recorded 1.7 million contracts, up 9%, with metals surging 62% and agricultural products up 14%. In LatAm, the ADV grew to 182,000 contracts, an 8% increase. Canada saw an 11% rise to 162,000 contracts, bolstered by energy and interest rate products.

This growth underscores CME Group's role in providing essential risk management tools amid global market volatility.

Positive

• International ADV reached a record 7.8 million contracts, up 23% YoY.
• EMEA ADV increased by 28%, hitting a record 5.8 million contracts.
• Significant growth in commodities: metals up 50%, energy up 40%, agricultural products up 25%.
• APAC region's metals ADV surged 62%, with agricultural products up 14%.
• Canada's energy and interest rate products grew 32% and 14% respectively.

Negative

• None.

Insights

Financial Analyst

CME Group's record-breaking international average daily volume (ADV) of 7.8 million contracts in Q2 2024 signifies a notable development for the company. From a financial perspective, this growth can be attributed to increased trading volumes across all asset classes, particularly interest rate and equity products. This surge indicates strong market participation and potentially higher revenue from trading fees for CME Group.

Breaking down the growth geographically, the EMEA region experienced the most significant rise with a 28% increase to 5.8 million contracts. This growth is quite impressive in a single quarter, pointing towards an expanding customer base and heightened engagement in that region. Likewise, the Asia Pacific (APAC) and Latin America (LatAm) regions showed strong advances of 9% and 8% respectively.

For retail investors, these figures suggest a robust and diversified business model that can thrive across various global markets. Moreover, the strong performance in specific product categories like metals (up 50%) and energy (up 40%) indicates that CME Group is well-positioned to take advantage of market volatility. This diverse growth across multiple asset classes provides a hedge against downturns in any single market, which is a positive sign for long-term stability.

Market Research Analyst

The 23% year-on-year increase in CME Group's international ADV highlights the company's effective response to the higher demand for risk management tools amid global market uncertainties. This growth across all asset classes shows that market participants are increasingly using CME's platforms to hedge against price risks in volatile conditions.

Particularly noteworthy is the 50% jump in metals trading volumes. This sharp rise may be attributed to geopolitical tensions, supply chain disruptions, or fluctuations in commodity prices. Energy and agricultural products also saw significant increases, up 40% and 25% respectively, reflecting an overall shift towards commodity trading in uncertain times.

In the EMEA and APAC regions, the high growth rates—54% in energy and 62% in metals for APAC—demonstrate the growing importance of these markets for CME Group. The fact that these regions are setting quarterly records suggests that CME Group's expansion strategy is bearing fruit, providing a diversified revenue stream that mitigates reliance on the U.S. market alone.

• Record Europe, Middle East and Africa (EMEA) ADV of 5.8M, up 28% in Q2 2024
• Asia Pacific (APAC) ADV of 1.7M, up 9%; Latin America (LatAm) ADV of 182K, up 8% in Q2 2024

LONDON and SINGAPORE, July 5, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that its quarterly international average daily volume (ADV) reached a record 7.8 million contracts in Q2 2024, up 23% year on year.  Reflecting all trading reported outside the United States, the record volume was driven by growth across all asset classes, with the highest trading volumes coming from interest rate and equity products.  Commodities saw strong growth, with metals up 50%, energy up 40% and agricultural products up 25%.

"Market conditions in the second quarter of the year continued to create a heightened need for risk management as clients globally turned to CME Group markets to navigate sustained uncertainty and volatility," said Julie Winkler, Senior Managing Director and Chief Commercial Officer, CME Group. "Our record Q2 international ADV was driven by significant increases in volume across all asset classes in EMEA and APAC, demonstrating how our clients turn to our products to hedge price risk."

In Q2 2024, EMEA ADV hit a record 5.8 million contracts, up 28% from Q2 2023. Foreign exchange and interest rate products reached new records in Q2 2024, growing 27% and 26% respectively year on year. Commodities in the region also saw record quarterly ADV, with energy, metals and agricultural products up 54%, 45% and 33% respectively, compared to the same period in 2023. 

APAC ADV stood at 1.7 million contracts in Q2 2024. The region saw strong quarterly ADV performance in metals, up 62%, while agricultural products ADV was up 14% year over year.

LatAm ADV stood at 182,000 contracts in Q2 2024, up 8% compared to Q2 2023. Metals and foreign exchange products both hit a record quarterly ADV in the region in Q2 2024, up 84% and 41% respectively year over year.

Canada ADV stood at 162,000 contracts in Q2 2024, up 11% compared to Q2 2023. This was a result of strong growth in energy and interest rate products, up 32% and 14% year over year. 

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index and the S&P 500 Dividend Points Index (Annual) are products of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These indices and trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the Indices are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

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SOURCE CME Group

FAQ

What was CME Group's international average daily volume in Q2 2024?

CME Group's international average daily volume (ADV) reached a record 7.8 million contracts in Q2 2024, a 23% increase year-over-year.

How did the EMEA region perform for CME Group in Q2 2024?

The EMEA region saw a record ADV of 5.8 million contracts in Q2 2024, up 28% from Q2 2023.

What were the growth figures for commodities in CME Group's Q2 2024 report?

Commodities saw substantial growth with metals up 50%, energy up 40%, and agricultural products up 25% year-over-year.

How did CME Group's APAC region fare in Q2 2024?

The APAC region recorded an ADV of 1.7 million contracts in Q2 2024, which is a 9% increase from the previous year.

What is CME Group's stock symbol?

CME Group's stock symbol is CME.