CME Group Inc. - CME STOCK NEWS

CME Group and CF Benchmarks announced the launch of three new DeFi reference rates and real-time indices on December 19. These indices will include Aave, Curve, and Synthetix, aimed at meeting the rising demand for regulated cryptocurrency pricing. Designed to enhance transparency and price discovery, these benchmarks will cover over 40% of the total value locked in DeFi protocols on the Ethereum blockchain. The rates will be published daily at 4 p.m. London time, with real-time indices updated every second, providing crucial data for traders and institutions.

CME Group has announced a fourth-quarter dividend of $1.00 per share, payable on December 28, 2022, to shareholders on record as of December 9, 2022. As a leading derivatives marketplace, CME Group provides a platform for trading various instruments including futures, options, and OTC markets. This dividend highlights the company's commitment to returning value to its shareholders while continuing to support global trading activities across multiple asset classes.

CME Group reported an 11% increase in average daily volume (ADV) for October 2022, reaching 22.7 million contracts, the highest October volume on record. The significant growth was fueled by a 59% rise in Equity Index volumes, including record E-mini S&P 500 options contracts. Additionally, SOFR options ADV skyrocketed by 1,108%, marking a strong interest in interest rate products. Other highlights include substantial increases in Foreign Exchange ADV and Options ADV, contributing to a robust trading environment.

CME Group has launched a new suite of overnight index futures based on the Euro Short-Term Rate (€STR) as of October 31, 2022. This product includes €STR 3-Month futures and €STR 3-Month Single Contract Basis Spread futures, aimed at providing efficient hedging for European money market rates. The futures support price discovery and risk management across European markets. Major financial institutions like JP Morgan and Citi are backing these contracts, which will be available on CME Globex and cleared via CME ClearPort.

CME Group reported strong Q3 2022 financial results, with $1.2 billion in revenue and $680 million net income, translating to $1.87 diluted EPS. Adjusted net income stood at $719 million with adjusted EPS of $1.98. The surge in performance was driven by a 26% increase in trading volume, particularly in interest rates, equity indexes, and foreign exchange. The company returned $363 million to shareholders in dividends this quarter, totaling over $18.8 billion in dividends since 2012.

CME Group has partnered with Marex to enhance access to its Aluminum futures market. This collaboration marks an important step in addressing client demand for alternative markets. The Aluminum futures saw record trading volumes, including 7,929 contracts on October 5, 2022, and an average of around 3,000 contracts daily in October. Open interest also reached a record 1,411 contracts on October 19, 2022. Marex aims to expand its global technology-focused presence through this partnership, aligning with CME's strategy to develop a robust marketplace.

CME Group announced the launch of U.S. dollar-denominated TOPIX futures on November 21, 2022, pending regulatory review. This cash-settled contract will complement the existing Yen-denominated TOPIX futures introduced in February 2018. The initiative aims to enhance access to Japan's key equity benchmark while minimizing FX risk for international investors. Tim McCourt, Global Head of Equity and FX Products, emphasized this as a strategic extension of their offerings, promoting higher liquidity and efficient price formation in the global market for TOPIX futures.

CME Group announced the appointment of Jonathan Marcus as Senior Managing Director and General Counsel, effective immediately. With almost 30 years of legal experience in regulatory enforcement, Marcus will oversee compliance, enterprise risk management, and legal functions. Previously, he served as General Counsel for the U.S. Commodity Futures Trading Commission (CFTC) from 2013 to 2017, advising on critical issues like the Dodd-Frank Act. His expertise is expected to support CME Group's strategic objectives as it transforms its business globally.

CME Group reported a significant increase in its quarterly international average daily volume (ADV), reaching 6.1 million contracts in Q3 2022, a 21% year-on-year growth. Key drivers included a 36% rise in Foreign Exchange products, 32% in Interest Rate products, and 25% in Equity Index products. Regionally, Europe, the Middle East, and Africa saw a 14% increase in ADV, while Asia Pacific achieved a 41% growth. Globally, CME's ADV reached 22.4 million contracts, a 26% increase compared to Q3 2021, highlighting robust demand for risk management tools amid geopolitical tensions.