CME Group, a derivatives exchange, reported a strong second-quarter profit, beating Wall Street’s estimates. The company’s adjusted profit of $2.99 per share surpassed analysts’ expectations of $2.91 per share.
Perpetual Futures Concerns
Despite the strong earnings, the company’s stock is down 8% so far this year, partly due to concerns over perpetual futures, which are listed derivatives without an expiration date. Outgoing CEO Terry Duffy criticized perpetual futures, stating that they do not appeal to the company’s core customers.
The company’s total average daily volume (ADV) was down 1% from last year, largely due to decreased volumes in interest rate and energy contracts. However, ADV for equity indexes jumped 13% during the quarter, driven by a 14.9% rise in the benchmark S&P 500 index.
Revenue in the company’s market data and information services segment increased 20.2%, while clearing and transaction fees fell 2.6%. Analysts at Piper Sandler described the quarter as ‘solid’ for CME, despite tough comparisons to the previous year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
