(Reuters) -Exchange operator CME Group beat first-quarter profit estimates on Wednesday, helped by record growth in futures and options contracts tied to U.S. Treasuries and higher commodity markets trading activity.
While hopes of a “soft landing”, where inflation falls without a recession or big job losses, have firmed up over the past few months, the trajectory of interest rates continues to be uncertain as investors assess the latest economic data.
Volatility due to changing rate-cut expectations helped CME’s average daily volume (ADV) to rise as customers increasingly used its offerings to manage risks.
CME Group’s ADV in its U.S. Treasuries futures and options grew 12% year over year, reaching an all-time high of 7.8 million contracts per day, the company said, adding that ADV in its commodities markets rose 14% to 4.7 million contracts.
Clearing and transaction fees, from which CME makes most of its revenue, edged up 0.7% to $1.21 billion. Its total revenue rose 3% to $1.49 billion in the first quarter.
On an adjusted basis, CME earned $2.50 per share, compared to analysts’ estimates of $2.45, according to LSEG data.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shounak Dasgupta)
