CME Group Inc. - CME STOCK NEWS

CME Group, the world's leading derivatives marketplace, announced a new record in Live Cattle options open interest, reaching 410,120 contracts on August 1, 2024. This surpasses the previous record of 399,626 set on July 31, 2014. The surge in open interest reflects high demand and low supply in the cattle market, with levels not seen in over 60 years. Live Cattle options volume has grown 61% year to date, highlighting their importance as a risk management tool for producers, processors, and institutions navigating market uncertainty.

John Ricci, Managing Director and Global Head of Agriculture at CME Group, emphasized the significance of these options in helping market participants hedge price risk effectively. CME Group continues to offer the industry's widest range of benchmark cattle products, reinforcing its position as a leader in agricultural derivatives.

CME Group reported a record July average daily volume (ADV) of 24.8 million contracts, up 24% from July 2023. Highlights include:

- Record July ADV in interest rate (11.6M), equity index (7.4M), metals (765K), agricultural (1.7M), and options (5.1M) products
- Record July U.S. Treasury futures and options ADV of 6.6M contracts
- International ADV grew 28% to 7.6M contracts
- Energy ADV increased 25% to 2.5M contracts
- Foreign Exchange ADV rose 9% to 959K contracts

Notable increases: Micro E-mini Nasdaq-100 futures ADV up 62%, Henry Hub Natural Gas options ADV up 71%, and Micro Gold futures ADV up 68%. BrokerTec U.S. Treasury notional volume reached $172B on July 31, the third-highest trading day in 2024.

CME Group announced record open interest for its Lithium Hydroxide and Lithium Carbonate futures contracts on July 31, 2024. Lithium Hydroxide futures reached 26,802 contracts, while Lithium Carbonate futures hit 1,092 contracts. The surge in interest reflects growing demand for lithium and the need to manage price risk in the market.

Key highlights include:

• Record daily Lithium Hydroxide futures volume of 1,121 contracts on July 30, 2024
• Record Lithium Hydroxide options open interest of 579 contracts on July 31, 2024
• Average open interest for July 2024 was 24,775

Jin Hennig, CME Group Managing Director, noted that Lithium Hydroxide futures trading in the first half of 2024 has already surpassed full-year 2023 totals, indicating strong market participation and growing interest in lithium futures.

CME Group (CME) has announced the launch of Adjusted Interest Rate S&P 500 (AIR) Total Return (SOFR) futures on August 26, 2024, pending regulatory review. This new product will use the Secured Overnight Financing Rate (SOFR) instead of the current Effective Federal Funds Rate (EFFR). The move comes as SOFR has become the preferred industry benchmark for short-term U.S. overnight financing.

Key points:

• Year-to-date average daily volume of 9,800 contracts in existing AIR Total Return futures, up 113% year-over-year
• CME Group SOFR futures have a year-to-date average daily volume of 3.3 million contracts
• The new SOFR-based contracts aim to provide additional flexibility for managing swap exposure

CME Group reported record-breaking financial results for Q2 2024, with revenue reaching $1.5 billion and operating income of $1.0 billion. The company achieved net income of $883 million and diluted earnings per share of $2.42. On an adjusted basis, net income was $932 million with diluted EPS of $2.56.

Highlights include:

• Record Q2 average daily volume (ADV) of 26 million contracts
• Year-over-year growth across all asset classes
• Non-U.S. ADV reached a record 7.8 million contracts
• U.S. Treasury products ADV increased 36% to 8.2 million contracts

The company paid dividends of approximately $419 million during Q2 and has returned about $25.2 billion to shareholders since 2012.

CME Group and CF Benchmarks will introduce two new cryptocurrency reference rates and real-time indices for Ripple XRP (XRP) and Internet Computer (ICP) starting July 29. These benchmarks provide transparent pricing data to help market participants value portfolios and create structured products. The new benchmarks will use pricing data from leading exchanges such as Bitstamp, Coinbase, and Kraken and will publish the U.S. dollar price of each asset daily at 4 p.m. London time, with real-time indices published every second, year-round.

This expansion brings CME CF's suite of cryptocurrency benchmarks to 24, covering over 93% of the investible cryptocurrency market capitalization. The aim is to support the growing maturity of the cryptocurrency asset class and assist clients in risk management.

CME Group, the leading derivatives marketplace, has appointed Mike Dennis as the Global Head of Fixed Income, effective August 5, 2024. Dennis will oversee futures and options contracts on SOFR and U.S. Treasuries, including the renowned 30-year bond and 10-, 5-, and 2-year notes, along with BrokerTec's trading platform.

He will report directly to Chairman and CEO Terry Duffy and be part of the management team. Dennis steps down from the CME Group Board of Directors to assume this role. Tim McCourt will continue to lead other financial business lines including equity indexes, FX, and cryptocurrency futures and options.

Dennis brings over 22 years of interest rate trading experience, previously serving as Principal and Chief Commercial Officer at ABN AMRO Clearing USA. His expertise includes roles at Societe Generale, Advantage Futures, and JP Morgan Chase. The appointment aims to leverage Dennis' deep industry knowledge to benefit CME's expanding interest rate business, which saw a 14% increase in Q2.

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.

Farmer sentiment fell in June, as reflected by the Purdue University/CME Group Ag Economy Barometer, which dropped 3 points to 105 compared to May. This was driven by a 5-point decline in the Index of Future Expectations, now at 112, despite a slight increase in the Current Conditions Index to 90. Key factors include high input costs, lower product prices, and rising interest rates. The Farm Capital Investment Index also dropped 3 points to 32. The Short-Term Farmland Value Expectations Index held steady at 115, but the Long-Term Farmland Values Index fell 7 points to 152, influenced by nonfarm investor demand and inflation. Interest in carbon capture and storage projects from ethanol plants was noted, with 8% of respondents approached, mostly with offers under $25 per acre. Moreover, 16% discussed leasing farmland for solar energy, with lease rates increasing, 27% of which exceeded $1,500 per acre.