CME Group third-quarter profit rises on trading strength
(Reuters) -CME Group on Wednesday reported a rise in its third-quarter profit as traders used the company's products to hedge against market volatility.
Storm clouds hovering over the economy have kept demand for CME's hedging products steady, even as hopes of a soft landing boost sentiment in markets.
«Market participants continued turning to our markets to mitigate their business risks amid accelerating geopolitical uncertainty,» Chief Executive Terry Duffy said in a statement.
The company, known mainly for its futures products tied to commodities trading, registered revenue growth of 9% to $1.34 billion from last year.
Clearing and transaction revenue rose 8.7% to $1.09 billion, while revenue for market data and information services climbed 8.6% to $167.6 million.
Higher demand for hedging has allowed CME to register three consecutive years of revenue growth.
CME Group's (NASDAQ:CME) average daily volume was steady at 22.3 million in the quarter, slightly below 22.4 million last year.
Last week, Duffy told Reuters that CME is in a strong position to make acquisitions, armed with low debt and robust earnings.
On an adjusted basis, the company's net income rose to $807.8 million, or $2.25 per share, for the quarter ended Sept. 30, from $710.0 million, or $1.98 per share, a year earlier.
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