Financial Performance - Total revenues for 2024 reached $6,130.1 million, an increase of 9.8% from $5,578.9 million in 2023[333]. - Net income for 2024 was $3,525.8 million, up 9.3% compared to $3,226.2 million in 2023[335]. - Earnings per share attributable to common shareholders increased to $9.69 in 2024, a rise of 9.3% from $8.87 in 2023[333]. - Operating income for 2024 was $3,931.5 million, representing a 14.5% increase from $3,435.7 million in 2023[333]. - Comprehensive income for 2024 was $3,475.9 million, an increase from $3,303.9 million in 2023, reflecting a growth of 5.2%[335]. - Cash provided by operating activities for 2024 was $3,690.5 million, compared to $3,453.8 million in 2023, reflecting a growth of 6.8%[347]. - Cash dividends declared for 2024 were $3,584.2 million, an increase from $3,235.5 million in 2023[349]. - Total revenues for 2024 reached $6,130.1 million, an increase of 9.8% from $5,578.9 million in 2023[391]. - Clearing and transaction fees totaled $4,988.2 million in 2024, up from $4,588.5 million in 2023, reflecting a growth of 8.7%[391]. - Interest rates revenue increased to $1,659.6 million in 2024, a rise of 6.5% compared to $1,558.4 million in 2023[391]. - Market data revenue grew to $710.2 million in 2024, representing an increase of 7.0% from $663.7 million in 2023[391]. Assets and Liabilities - Total assets as of December 31, 2024, were $137,447.0 million, compared to $129,706.1 million in 2023, reflecting a growth of 5.3%[331]. - Total liabilities increased to $110,960.1 million in 2024, up from $102,968.2 million in 2023, marking a rise of 7.7%[331]. - Total cash, cash equivalents, and restricted cash at the end of 2024 amounted to $101,794.1 million, up from $93,109.7 million at the end of 2023[349]. - The balance of accumulated other comprehensive income (loss) was $(105.5) million at the end of 2024, compared to $(55.6) million at the end of 2023[344]. - The balance of contract liabilities was $15.6 million as of December 31, 2024, compared to $13.2 million in 2023[391]. - Cash performance bonds increased to $96,036.4 million in 2024 from $87,285.5 million in 2023, representing an increase of 10.0%[407]. - Total letters of credit decreased to $7,760.7 million in 2024 from $8,548.1 million in 2023, a decline of 9.2%[410]. - The net book value of property decreased to $386.2 million in 2024 from $409.5 million in 2023, a decrease of 5.7%[411]. - The carrying amount of the company's investment in GME Holdings was $11.6 million at December 31, 2024, following a net gain of $9.2 million from a share transaction[417]. - The carrying amount of the company's investment in OSTTRA was $1.2 billion at December 31, 2024[418]. Debt and Credit Facilities - The company's long-term debt is rated investment grade by two major rating agencies, with a current outstanding amount of $3.4 billion[168][307]. - The company maintains a $7.0 billion multi-currency line of credit, with the option to increase it to $10.0 billion, to provide liquidity in case of clearing firm defaults[313]. - Long-term debt outstanding decreased to $2,678.2 million in 2024 from $3,425.4 million in 2023, a reduction of 22.0%[423]. - The company has a committed facility of up to $750.0 million for foreign currency conversions, which is subject to annual renewal[315]. - The company maintains a 364-day multi-currency line of credit of up to $7.0 billion, with $10.1 billion in guaranty fund contributions available to collateralize the facility[403]. - CME has a committed facility of up to $750.0 million for foreign currency conversions, currently with no outstanding trades under this facility[405]. Expenses and Compensation - Compensation and benefits expenses rose to $850.3 million in 2024, a slight increase from $828.6 million in 2023[333]. - Stock-based compensation for 2024 was $89.5 million, slightly higher than $82.9 million in 2023[347]. - The total compensation expense for stock-related awards in 2024 was $90.4 million, an increase from $83.7 million in 2023[477]. - The total unrecognized compensation expense related to employee stock-based compensation arrangements as of December 31, 2024, was $139.6 million, expected to be recognized over a weighted average period of 2.2 years[477]. - Aggregate expenses for defined contribution savings plans amounted to $20.8 million in 2024, up from $19.7 million in 2023 and $18.3 million in 2022[444]. Taxation - Income before income taxes for 2024 was $4,541.4 million, an increase of 9.3% from $4,153.6 million in 2023[426]. - The total income tax provision for 2024 was $1,015.6 million, up from $927.4 million in 2023, reflecting a 9.5% increase[426]. - The effective tax rate for 2024 was 22.4%, slightly higher than 22.3% in 2023[426]. - Deferred income tax assets increased to $142.0 million in 2024 from $134.4 million in 2023[428]. - The company reported gross unrecognized tax benefits of $251.6 million in 2024, a decrease from $264.1 million in 2023[430]. Pension and Employee Benefits - The balance of the projected benefit obligation for the pension plan increased to $364.0 million in 2024 from $351.5 million in 2023[434]. - The fair value of pension plan assets rose to $367.5 million in 2024, exceeding the pension benefit obligation by $3.5 million[436]. - The net pension expense for 2024 was $17.0 million, compared to $18.3 million in 2023[438]. - The discount rate used to determine the end-of-year projected benefit obligation increased to 5.70% in 2024 from 5.20% in 2023[438]. - The asset allocation for the pension plan as of December 31, 2024, was 45.7% in fixed income, 4.3% in money market funds, 37.4% in U.S. equity, and 12.6% in foreign equity[440]. - The actuarial loss balance for the pension plan decreased from $33.0 million at the beginning of 2024 to $20.8 million by the end of the year[443]. - Anticipated benefit payments from the pension plan for 2025 are projected at $34.9 million, increasing to $38.4 million by 2029, with total payments of $196.2 million expected from 2030 to 2034[443]. Market Data and Trading - In 2024, 85% of the derivatives contract volume was derived from exchange members, indicating a strong reliance on member trading activities[170]. - Aggregate performance bond deposits for clearing firms amounted to $291.5 billion as of December 31, 2024, which includes cash and non-cash deposits[316]. - The average rate per contract for the derivatives business is subject to fluctuations, making it difficult to predict future rates[169]. - Revenue from clearing and transaction fees is recognized upon successful execution of trades, with minimal remaining revenue recognized over the short-term period[386]. - Market data and information services revenue is recognized monthly as customers receive and consume the benefit of the services[389]. Shareholder Information - The company has authorized a share repurchase program of up to $3 billion for Class A common stock, with no shares repurchased as of December 31, 2024[474]. - As of December 31, 2024, there were 1,087,358 shares of restricted stock and restricted stock units outstanding, with a weighted average grant date fair value of $219[479]. - The total fair value of restricted stock, restricted stock units, and performance shares that vested in 2024 was $61.4 million[480]. - The Employee Stock Purchase Plan (ESPP) allowed employees to purchase 37,466 shares of Class A common stock in 2024, with an annual expense of $0.8 million recognized for the purchase discount[481]. - As of December 31, 2024, CME Group has approximately 4.6 million shares of Series G Non-Voting Convertible Preferred Stock outstanding, which is convertible into Class A common stock at a 1:1 rate[463].

Group 1 - CME Group achieved a new single-day volume record of 67,124,571 contracts traded on February 25, 2025, surpassing the previous record of 66,256,756 contracts set on March 13, 2023 [1] - The company reported new daily volume records in its interest rate complex, indicating increased market activity amid heightened uncertainty [1] - CME Group's Chairman and CEO, Terry Duffy, highlighted that investors are seeking to protect their portfolios, leading to a focus on innovative risk management solutions and $60 billion in capital efficiencies across asset classes, including $20 billion in daily margin savings in interest rates [1] Group 2 - CME Group provides a wide range of tools for managing risk across the yield curve, including U.S. Treasuries, SOFR, Fed Funds, €STR, and credit products [1] - The company enables clients to trade futures, options, cash, and OTC markets, optimizing portfolios and analyzing data to manage risk and capture opportunities [2] - CME Group operates one of the world's leading central counterparty clearing providers, CME Clearing, and offers trading through various platforms including CME Globex, BrokerTec, and EBS [2] Group 3 - On February 25, 2025, the volume breakdown included 50,924,122 contracts for interest rate futures and options, and 40,664,890 contracts for U.S. Treasury futures and options [4] - Specific contract volumes included 6,543,368 for 2-Year U.S. Treasury Note futures, 4,076,504 for Ultra 10-Year U.S. Treasury Note futures, and 2,831,906 for U.S. Treasury Bond futures [4]

Group 1 - CME Group has launched new financially settled options on Bitcoin Friday futures, which are now available for trading [1][2] - The first trade of these options occurred on February 23, executed between Cumberland DRW and Galaxy, and cleared by Marex [1][2] - Giovanni Vicioso, Global Head of Cryptocurrency Products at CME Group, highlighted that these smaller sized, cash-settled contracts will enhance traders' ability to manage short-term bitcoin price risk [2] Group 2 - The new options products are designed to provide increased liquidity, flexibility, and optionality for market participants, as stated by Roman Makarov from Cumberland DRW [2] - Marex Capital Markets expressed excitement over clearing the first block trade, emphasizing that these contracts will improve visibility into short-term volatility [2] - Mike Harvey from Galaxy noted that the low notional value of the contracts makes them accessible to a wide range of market participants, with a settlement time of 4 p.m. New York adding precision to trading strategies [2] Group 3 - The new options on Bitcoin Friday futures will complement CME Group's existing offerings, which include physically-settled options on Bitcoin, Ether, Micro Bitcoin, and Micro Ether futures, thereby providing additional risk management flexibility [2]

Core Viewpoint - CME Group and DTCC are expanding their cross-margining arrangement to enhance margin savings and capital efficiencies for end users by December 2025 [1][2]. Group 1: Cross-Margining Arrangement - The proposed enhancement will allow eligible end user clients at CME Group and DTCC's Fixed Income Clearing Corporation to access capital efficiencies when trading U.S. Treasury securities and CME Group interest rate futures with offsetting risk exposures [2][3]. - Clients must use the same dually registered Futures Commission Merchant and broker/dealer at both CCPs to participate in end-user cross margining [2][3]. - The arrangement aims to encourage greater utilization of central clearing, thereby reducing systemic risk in the market [2][3]. Group 2: Benefits and Goals - The collaboration between CME Group and DTCC focuses on extending cross-margin benefits to more customer accounts and potentially to other products, enhancing efficiency, cost reduction, liquidity, and risk management in U.S. Treasury markets [3]. - The arrangement will designate cross-margin accounts, allowing eligible positions to offset with CME Group interest rate futures, and participants can direct futures to these accounts throughout the day [3]. Group 3: Company Background - CME Group is the leading derivatives marketplace, enabling clients to trade various financial instruments and manage risk effectively [4]. - DTCC, with over 50 years of experience, serves as the premier post-trade market infrastructure, automating and standardizing financial transaction processing to enhance efficiency and transparency [6][7]. - In 2023, DTCC processed securities transactions valued at U.S. $3 quadrillion and provided custody for securities valued at U.S. $85 trillion [7].

Group 1 - CME Group is one of 870 individual stocks in the Finance sector and is currently ranked 1 in the Zacks Sector Rank [2] - CME Group has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with a 1.7% increase in the consensus estimate for full-year earnings over the past quarter [3] - CME has gained about 8% year-to-date, outperforming the Finance sector's average return of 6.4% [4] Group 2 - CME Group belongs to the Securities and Exchanges industry, which includes 7 companies and is currently ranked 144 in the Zacks Industry Rank, with an average gain of 8.4% this year [5] - Main Street Capital, another Finance stock, has also outperformed the sector with a year-to-date return of 7.7% and has a Zacks Rank of 2 (Buy) [4][6] - The Financial - SBIC & Commercial Industry, which includes Main Street Capital, is ranked 44 and has returned 7.4% so far this year [6]

Group 1 - CME Group operates a global marketplace for trading futures and options and is the dominant player in this sector [1] - CME Group has been publicly traded since 2002, transitioning from a mutually owned model to a public company [1] Group 2 - The article reflects an independent analysis and investment perspective focused on the intersection of value and growth, particularly in small-cap companies [1]

CME Group (NASDAQ: CME ) currently has a dividend yield of 4.18% and is currently trading at a P/E ratio of 23.71 This is combined with its relatively fast growth rate of around 8% for the lastA passionate college student looking to build a career in the field of finance. Currently studying for CFA level 1 examination and pursuing BBA at nalsar university Hyderabad. Looking to contribute to investors by making stock research easy.Analyst’s Disclosure: I/we have no stock, option or similar derivative positio ...

CME Group (CME) reported fourth-quarter 2024 adjusted earnings per share of $2.52, which beat the Zacks Consensus Estimate by 3.3%. The bottom line increased 6.3% year over year. See the Zacks Earnings Calendar to stay ahead of market-making news.Quarterly results benefited from improving revenues, driven by higher clearing and transaction fees as well as market data and information services fees. Performance in DetailCME Group’s revenues of $1.5 billion increased 6% year over year. The year-over-year incre ...

Financial Data and Key Metrics Changes - CME Group reported a record revenue of $6.1 billion for 2024, a 10% increase compared to 2023, with all six asset classes achieving all-time revenue records [16][23] - Adjusted operating margin expanded to 68.3%, up over 140 basis points from 2023, with adjusted net income reaching $3.7 billion, resulting in a 10% growth in earnings per share [17][23] - In Q4 2024, revenue was over $1.5 billion, a 6% increase from Q4 2023, with market data revenue growing 9% to $182 million [18][19] Business Line Data and Key Metrics Changes - Average daily volume (ADV) increased by 9% to 26.9 million contracts, marking the fourth consecutive year of record volume [8] - Commodities were the third fastest-growing asset class, with metals volume up 23%, energy up 17%, and agricultural products up 13% [10][11] - Commodity options volumes increased by 29% year-over-year, driven by strong new client acquisition across institutional and retail sectors [12] Market Data and Key Metrics Changes - International business averaged 7.8 million contracts per day, up 14% from the previous record set in 2023, with EMEA showing the fastest growth at 34% year-over-year [9][11] - Retail participation was up 6%, with new client acquisition in the retail business contributing significantly to overall growth [30][34] Company Strategy and Development Direction - CME Group is focusing on expanding its retail business and enhancing client education to attract new participants, particularly through partnerships with retail brokers [30][35] - The company is committed to providing capital efficiencies and risk management solutions amid ongoing geopolitical tensions and economic uncertainties [15][23] - CME Group is exploring opportunities in climate-related products and energy transition markets, with significant growth in battery metals and weather-driven markets [64][67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong volumes in 2025, driven by ongoing customer needs for efficient trading and hedging solutions [15][116] - The company anticipates challenges in the broader economic environment, including high levels of debt and geopolitical issues, which will necessitate effective risk management [112][116] - Management highlighted the importance of adapting to changing market structures and the evolving definition of retail participants [36][134] Other Important Information - CME Group declared dividends totaling approximately $3.8 billion in 2024, including a variable dividend of $2.1 billion [20] - The company announced transaction fee adjustments expected to increase futures and options transaction revenue by approximately 1% to 1.5% [21][23] Q&A Session Summary Question: Retail customer acquisition strategy and impact of Robinhood rollout - Management noted that two-thirds of the $1 billion revenue from new clients over the last five years were driven by retail business, with strong growth in participation and trading activity [29][30] Question: Strategic benefits of establishing a futures commission merchant - Management clarified that while they received approval for a futures commission merchant, they do not plan to dislocate current partners and view it as a preparatory measure for potential market changes [40][41] Question: Capital allocation and stock buybacks - Management indicated that the stock buyback program will be opportunistic, alongside dividends as a means to return capital to shareholders [51][52] Question: Product development opportunities related to climate events - Management highlighted existing market activity in agriculture and energy products, with significant growth in options and weather-driven markets [60][67] Question: Competitive landscape for interest rate contracts - Management discussed the importance of U.S. regulatory clarity regarding the competitive landscape and the need for U.S. authority in default resolution for sovereign debt [152][154]

CME Group (CME) came out with quarterly earnings of $2.52 per share, beating the Zacks Consensus Estimate of $2.44 per share. This compares to earnings of $2.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.28%. A quarter ago, it was expected that this parent company of the Chicago Board of Trade and other exchanges would post earnings of $2.65 per share when it actually produced earnings of $2.68, delivering a surprise of ...