CME Group’s micro Ether futures ADV grew to 19,000

abdelaziz Fathi

CME Group (NASDAQ: CME) has reported its fiscal results for the first quarter of 2022, which topped Wall Street expectations for earnings and revenue.

The world’s largest financial derivatives exchange reported first-quarter earnings of $702 million on revenue of $1.3 billion and operating income of $859 million. Q1 revenue was higher by 13 percent from $1.07 billion compared to the same quarter of 2021. The profitability metrics were higher by nearly 24 percent from the year-ago period.

On an adjusted basis, net income was $766 million and diluted earnings per common share were $2.11.

The upbeat performance came on the back of a rise in clearing and transaction fees, coupled with growth in market data and information services. The clearing and transaction fees rebounded due to higher equity indexes and metals average daily volume, coupled with some improvement in the average rate per contract.

In terms of its operational metrics, the exchange operator disclosed Q1 2022’s ADV at 25.9 million contracts, including non-U.S. ADV of 7.3 million contracts, led by 28% growth in Latin America, 22% in Asia and 17% in EMEA.

CME updates in crypto metrics

The parent company of the Chicago Board of Trade and other exchanges posted $1.1 billion in clearing and transaction fees revenue for first-quarter. This figure was 17 percent higher from $949 million in the fourth quarter of 2021.

The total average rate per contract was $0.644, slightly down from $0.650 in the previous quarter, while market data revenue totaled $152 million, the exchange said.

“During this period of extreme geopolitical and economic uncertainty, our continued focus on helping clients manage their risk resulted in strong earnings and revenue growth during the first quarter. Average daily volume was robust with double-digit increases in equity index, interest rate and options products, as well as significant volume outside the U.S. In addition, we are pleased with the accelerated growth of our SOFR futures and options since the start of the year, including record quarterly volume and open interest. Looking ahead, we will continue to provide the benchmark products, services and data our clients need as they continue to navigate through evolving central bank policies, inflation, supply chain constraints and other economic challenges,”said CME Group Chairman and Chief Executive Officer Terry Duffy.

Moreover, the CME provided updated metrics about its cryptocurrency products. Micro Bitcoin futures accounted for 0.2% of overall Equity Index ADV, while Micro Ether futures ADV grew to 19,000 since their December 2021 launch.

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