CME Group Second-Quarter 2008 Volume Averaged 11.1 Million Contracts Per Day, Up 7 Percent From Year-Ago Levels
July 01 2008 - 10:59AM
PR Newswire (US)
- Nineteen percent increase in first-half 2008 average daily volume
CHICAGO, July 1 /PRNewswire-FirstCall/ -- CME Group, the world's
largest and most diverse derivatives exchange, today announced
second-quarter 2008 volume averaged 11.1 million contracts per day,
up 7 percent from second-quarter 2007. Quarterly electronic volume
increased 16 percent to 9.1 million contracts per day, compared
with the same quarter last year, and represented 82 percent of
total volume. June volume averaged 12.4 million contracts per day,
up 16 percent from the prior month, but down 4 percent from June
2007. Total June volume exceeded 259 million contracts for the
month, of which a record 83 percent was traded electronically.
Total monthly electronic volume increased 4 percent versus June
2007 to average 10.3 million contracts per day. Year-to-date 2008
volume through June averaged 12.3 million contracts per day, up 19
percent versus the same period last year. Second-Quarter Highlights
CME Group E-mini equity index volume averaged 2.8 million contracts
per day, up 33 percent compared with second-quarter 2007. CME Group
foreign exchange (FX) volume averaged a record 665,000 contracts
per day, up 26 percent from second-quarter 2007, and represented a
record average daily notional value traded of $94 billion, up 46
percent. CME Group commodities and alternative investments volume
averaged 933,000 contracts per day, up 14 percent from the same
period a year ago. CME Group interest rate volume averaged 6.5
million contracts per day, down 3 percent compared with the same
quarter in 2007. Quarterly NYMEX energy and metals volume on the
CME Globex electronic trading platform averaged a record 1.0
million contracts per day, up 46 percent. All references to volume
and rate per contract information in the text of this document
assume combined legacy CME and legacy CBOT volumes and exclude our
non-traditional TRAKRS products, for which CME Group receives
significantly lower clearing fees than other CME Group products,
and Swapstream products. June 2008 Highlights CME Group E-mini
equity index volume averaged 3.5 million contracts per day, up 21
percent compared with June 2007. CME Group FX volume averaged a
record 764,000 contracts per day, up 14 percent from June 2007, and
represented a record average daily notional value traded of $107
billion, up 35 percent. CME Group commodities and alternative
investments volume averaged a record 1.1 million contracts per day,
up 17 percent. CME Group interest rate volume averaged 6.8 million
contracts per day, growing from April and May levels, but down 17
percent compared with the same period in 2007. Monthly NYMEX energy
and metals volume on CME Globex averaged 1.1 million contracts per
day, up 44 percent. Company Guidance CME Group reiterates that it
expects full-year 2008 operating expense to range between $855 and
$870 million. This guidance includes $18 million of expense over
the final three quarters of 2008 -- or approximately $6 million per
quarter -- related to the acquisition of Credit Market Analysis
Limited (CMA), a leading provider of credit derivatives market
data, at the end of the first quarter. The company expects total
second-quarter operating expenses to range between $218 and $221
million, which includes costs associated with several strategic
initiatives. During the third and fourth quarters of 2008, the
company expects to realize merger-related synergies associated with
expiration of the e-cbot trading platform contract in mid-July,
which will reduce expenses by approximately $8 million per quarter.
The pro forma income statement for the first and second quarters,
and going forward, will be shown as excluding the impact of an FX
hedge related to the BM&F investment. This is because the
offsetting impact on the underlying investment does not flow
through the income statement. Lastly, beginning in late March, CME
Group temporarily suspended its securities lending program. As of
the end of the second quarter, the program has not been reinstated,
although the company expects to reenter the program in early July.
CME GROUP QUARTERLY AVERAGE DAILY VOLUME (In thousands) Q2 2008 Q2
2007 Percent Change PRODUCT LINE Interest Rates 6,467 6,670 -3%
E-minis 2,833 2,127 33% Equity Standard 161 180 -10% FX 665 527 26%
Commodities and Alt. Inv.* 933 818 14% Total 11,060 10,322 7% Q2
2008 Q2 2007 Percent Change VENUE Open Outcry 1,836 2,297 -20% CME
Globex 9,054 7,838 16% Privately Negotiated 170 188 -10% CME GROUP
MONTHLY AVERAGE DAILY VOLUME (In thousands) June 2008 June 2007
Percent Change PRODUCT LINE Interest Rates 6,758 8,099 -17% E-minis
3,501 2,889 21% Equity Standard 228 245 -7% FX 764 668 14%
Commodities and Alt. Inv.* 1,110 953 17% Total 12,360 12,852 -4%
June 2008 June 2007 Percent Change VENUE Open Outcry 1,897 2,726
-30% CME Globex 10,259 9,861 4% Privately Negotiated 204 266 -23%
*CME Group Commodities and Alternative Investments product line
includes the legacy CME commodities and alternative investments
product line and the legacy CBOT agricultural product line and
metals, energy and other product line. CME GROUP ROLLING
THREE-MONTH AVERAGES Average Rate Per Contract (In dollars, and
calculated from combined average daily volumes for entire period)
By Product Line By Venue 3-Month Period Commod- Privately Ending
ities Elec Nego- Interest E- Equity and Alt. Open tron tia- Rates
minis Standard FX Inv. Total Outcry ic ted May-08 0.527 0.661 1.473
0.918 1.114 0.644 0.575 0.622 2.354 Apr-08 0.521 0.676 1.484 0.926
1.117 0.643 0.586 0.617 2.332 Mar-08 0.505 0.684 1.506 0.927 1.119
0.630 0.553 0.609 2.345 Feb-08 0.506 0.705 1.501 0.963 1.109 0.635
0.563 0.616 2.593 Average Daily Volume (In thousands, average daily
volumes combined for entire period) By Product Line By Venue
3-Month Period Commod- Privately Ending ities Elec Nego- Interest
E- Equity and Alt. Open tron tia- Rates minis Standard FX Inv.
Total Outcry ic ted Jun-08 6,467 2,833 161 665 933 11,060 1,836
9,054 170 May-08 6,702 2,987 172 662 865 11,387 1,883 9,308 195
Apr-08 7,303 3,138 179 645 960 12,224 2,017 9,989 218 Mar-08 8,251
3,628 201 640 949 13,669 2,336 11,097 236 CME Group
(http://www.cmegroup.com/) is the world's largest and most diverse
derivatives exchange. Formed by the 2007 merger of Chicago
Mercantile Exchange Holdings Inc. (CME) and CBOT Holdings, Inc.
(CBOT), CME Group serves the risk management needs of customers
around the globe. As an international marketplace, CME Group brings
buyers and sellers together on the CME Globex electronic trading
platform and on its trading floors. CME Group offers the widest
range of benchmark products available across all major asset
classes, including futures and options based on interest rates,
equity indexes, foreign exchange, agricultural commodities, and
alternative investment products such as weather and real estate.
CME Group is traded on the New York Stock Exchange and NASDAQ under
the symbol "CME". The Globe logo, CME, Chicago Mercantile Exchange,
CME Group, Globex and E- mini, are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the
Board of Trade of the City of Chicago, Inc. TRAKRS and Total Return
Asset Contracts are trademarks of Merrill Lynch & Co., Inc.
These trademarks are used herein under license. All other
trademarks are the property of their respective owners. Further
information about CME Group and its products can be found at
http://www.cmegroup.com/. Statements in this news release that are
not historical facts are forward- looking statements. These
statements are not guarantees of future performance and involve
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or implied in any forward-looking statements.
Among the factors that might affect our performance are: our
ability to obtain the required approvals and to satisfy the closing
conditions for our proposed merger with NYMEX Holdings, Inc. and
our ability to realize the benefits and control the costs of the
proposed transaction; our ability to successfully integrate the
businesses of CME Holdings and CBOT Holdings, including the fact
that such integration may be more difficult, time consuming or
costly than expected and revenues following the merger may be lower
than expected; increasing competition by foreign and domestic
entities, including increased competition from new entrants into
our markets and consolidation of existing entities; our ability to
keep pace with rapid technological developments, including our
ability to complete the development and implementation of the
enhanced functionality required by our customers; our ability to
continue introducing competitive new products and services on a
timely, cost-effective basis, including through our electronic
trading capabilities, and our ability to maintain the
competitiveness of our existing products and services; our ability
to adjust our fixed costs and expenses if our revenues decline; our
ability to continue to generate revenues from our processing
services; our ability to maintain existing customers and attract
new ones; our ability to expand and offer our products in foreign
jurisdictions; changes in domestic and foreign regulations; changes
in government policy, including policies relating to common or
directed clearing or as a result of a combination with the
Securities and Exchange Commission and the Commodity Futures
Trading Commission; the costs associated with protecting our
intellectual property rights and our ability to operate our
business without violating the intellectual property rights of
others; our ability to generate revenue from our market data that
may be reduced or eliminated by decreased demand or the growth of
electronic trading; changes in our rate per contract due to shifts
in the mix of the products traded, the trading venue and the mix of
customers (whether the customer receives member or non-member fees
or participates in one of our various incentive programs) and the
impact of our tiered pricing structure; the ability of our
financial safeguards package to adequately protect us from the
credit risks of clearing members; the ability of our compliance and
risk management methods to effectively monitor and manage our
risks; changes in price levels and volatility in the derivatives
markets and in underlying fixed income, equity, foreign exchange
and commodities markets; economic, political, geopolitical and
market conditions; natural disasters and other catastrophes, our
ability to accommodate increases in trading volume and order
transaction traffic without failure or degradation of performance
of our systems; our ability to execute our growth strategy and
maintain our growth effectively; our ability to manage the risks
and control the costs associated with our acquisition, investment
and alliance strategy; our ability to continue to generate funds
and/or manage our indebtedness to allow us to continue to invest in
our business; industry and customer consolidation; decreases in
trading and clearing activity; the imposition of a transaction tax
on futures and options on futures transactions; and the seasonality
of the futures business. More detailed information about factors
that may affect our performance may be found in our filings with
the Securities and Exchange Commission, including our most recent
Quarterly Report on Form 10-Q, which is available in the Investor
Relations section of the CME Group Web site. We undertake no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
CME-G DATASOURCE: CME Group CONTACT: media, William Parke,
+1-312-930-3467, or Pamela Plehn, +1-312-930-3446, ; or investors,
John Peschier, +1-312-930-8491, all of CME Group Web site:
http://www.cme.com/
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