CME Group - CME STOCK NEWS

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.

CME Group has announced record-breaking trading volumes for June and Q2 2024, with average daily volume (ADV) reaching 25.3 million contracts in June and 26 million contracts in Q2. Key performance highlights include significant growth across all asset classes, particularly in U.S. Treasury futures and options, which saw a 29% increase in 10-Year U.S. Treasury Note futures ADV and a 78% increase in 10-Year U.S. Treasury Note options ADV. The report also noted record volumes in Agricultural products, with Soybean Meal and Soybean Oil futures achieving new highs. Additionally, the company saw a 19% increase in international ADV to 8.1 million contracts and substantial growth in Metals, Energy, and Foreign Exchange sectors. These achievements underscore CME Group's strong position as the world's leading derivatives marketplace.

For a detailed breakdown of the statistics, visit their official website.

CME Group has launched €STRWatch, a tool designed to help clients manage risk associated with European Central Bank (ECB) policy decisions. Building on the success of FedWatch, SOFRWatch, and TreasuryWatch, €STRWatch enables clients to analyze the impact of ECB rate decisions on futures settlement prices, particularly €STR futures. This tool helps clients project forward €STR rates by considering the spread between the ECB's deposit facility rate and the €STR rate.

Mark Rogerson, Head of Interest Rate Products, EMEA at CME Group, emphasized the importance of risk management amid shifting European interest rate policies. €STRWatch aims to assist clients as the €STR futures marketplace gains liquidity and participation.

€STRWatch will be available before the next ECB monetary policy meeting on July 25. For more details, visit CME Group's website.

CME Group, a leading derivatives marketplace, and Chicago Mayor Brandon Johnson awarded $5,000 scholarships to 25 City Colleges of Chicago graduates. This marks the eighth year of CME Group's support for the Star Scholars program, which has facilitated higher education for students from diverse backgrounds. The scholarship program, dating back to 1986, has awarded over $2 million to Chicago students. This year, 343 Star Scholars completed their associate degrees, with 25 notable recipients selected based on their academic performance. The scholarship supports degrees in fields such as accounting, business management, and finance at partner universities. The awards were presented at a ceremony at CME Group headquarters on June 26, 2024.

CME Group and Google Cloud have announced plans to build a new private Google Cloud region and a co-location facility in Aurora, Illinois. This significant milestone aims to support the global trading of CME Group's futures and options markets by offering ultra-low-latency networking and high-performance computing. Clients will have the flexibility to choose between self-managed infrastructure or Google Cloud's specialized infrastructure-as-a-service, both with equal network latency to the exchange. The new platform will enhance operational efficiencies, expand access to cloud services, and bring advanced AI capabilities to market users. The project is set to begin this year with disaster recovery facilities in Dallas, Texas.

CME Group announced that its newly launched U.S. Credit futures surpassed 400 contracts traded in the first week. These futures, launched on June 17, offer a more capital-efficient method for managing duration risk and U.S. credit exposure.

The products have demonstrated bid-offer spreads lower than 0.1% and provide access to an anonymous, centralized marketplace. Matthew Angelucci from PGIM Fixed Income highlighted the benefits of these futures in hedging portfolios and enhancing liquidity.

CME's credit futures allow for the management of duration risk through intercommodity spreads with U.S. Treasury futures and exposure to Bloomberg's duration-hedged index, with automatic margin offsets against CME's Interest Rate and Equity Index futures.

CME Group, a leading derivatives marketplace, announced record-breaking volumes for its FX futures and FX Link products on June 12, 2024. FX futures hit a new single-day volume record of 3.26 million contracts, equivalent to $314 billion in notional value, surpassing the previous record of 3.15 million contracts set in March 2023. Additionally, FX Link achieved a record volume of 113,662 contracts, equating to $10.5 billion in notional value, marking a 37% increase over the prior record set in June 2022.

Year-to-date, FX Link volumes are up over 52% compared to the same period in 2023. These milestones highlight the growing liquidity and client participation in CME's FX products, according to Paul Houston, Global Head of FX Products at CME Group. The records were also lauded by executives from Deutsche Bank and BNP Paribas for their integration with the OTC market and efficiency in executing FX swaps.

In May, U.S. farmers' outlook brightened, with the Purdue University/CME Group Ag Economy Barometer index rising to 108, up by 9 points from April. The Index of Future Expectations surged by 11 points to 117, while the Current Conditions Index increased by 6 points.

Higher crop prices contributed to this sentiment boost, with Eastern Corn Belt cash corn prices increasing 6%-7% and soybean prices rising 2%-3%.

The Farm Financial Performance Index increased by 6 points to 82, though it remains 15 points lower than last year's end. The Farm Capital Investment Index rose to 35, up 4 points from April's record low, but 77% consider it a bad time for large investments due to high interest rates and costs.

Interest in leasing farmland for solar energy production rose, with 20% of respondents engaging in discussions in the past six months, up from 12% in March. Over half received long-term lease rate offers of $1,000+ per acre.