CME Group Reaps Benefits of Market Volatility
June 16, 2023

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The CME ($NASDAQ:CME) Group, the world’s largest derivatives exchange, has been reaping the rewards of market volatility in recent years. As the stock market has experienced large swings and unexpected moves, CME Group has been able to capitalize on the increased trading activity. The company’s revenues have surged as traders flock to their platforms to take advantage of the heightened market volatility. CME Group is a global markets company offering futures, options, and financial products for a variety of industries. It is one of the largest derivatives exchanges in the world, with more than 3 million contracts traded daily.
CME Group operates exchanges throughout the US, Canada, Europe, Asia, and South America. It offers products related to interest rates, equity indices, foreign exchange, agricultural commodities, energy, metals, and alternative investments. In addition to its derivatives exchange activities, it also provides market data and analytics services.
Price History
On Wednesday, CME Group, one of the world’s leading derivatives marketplace, reaped the benefits of market volatility. Its stock opened at $177.9 and closed at $181.5, signifying a 2.1% increase from its previous closing price of 177.7. This impressive growth in stock performance comes as welcome news for the company, which had seen its share prices remain relatively stable in the weeks prior.
The rise in share prices is seen as a result of the increased market volatility caused by the current global economic climate and uncertainty surrounding global trade policies. Thus, CME Group’s stock is seen to be benefiting from an increased demand for its services as investors seek safe havens for their investments. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cme Group. More…
| Total Revenues | Net Income | Net Margin |
| 5.11k | 2.84k | 3.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cme Group. More…
| Operations | Investing | Financing |
| 3.06k | -489.8 | -25.38k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cme Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 166.04k | 138.65k | 76.12 |
Key Ratios Snapshot
Some of the financial key ratios for Cme Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.6% | 1.7% | 76.1% |
| FCF Margin | ROE | ROA |
| 58.0% | 9.0% | 1.5% |
Analysis
At GoodWhale, we conducted an analysis of CME GROUP‘s wellbeing. According to our Star Chart, CME GROUP is classified as a ‘cow’, a type of company that is known for paying out consistent and sustainable dividends. This makes it an attractive option for investors who are interested in investing in companies with consistent income streams. In addition to its strong dividend performance, CME GROUP also performs well in terms of profitability and average in terms of asset growth. We give CME GROUP a health score of 8/10, indicating that it has a strong capacity to safely ride out any crisis without the risk of bankruptcy. This makes it a highly attractive option for investors seeking a steady and reliable return on their investments. More…

Peers
CME Group Inc is a Chicago-based financial markets company. It is the largest futures exchange in the world by trading volume and average daily volume, and operates the largest options exchange. CME Group also owns and operates the New York Mercantile Exchange, the Chicago Board of Trade, the Chicago Stock Exchange, and the Dow Jones-UBS Commodity Index. CME Group competes with TMX Group Ltd, MarketAxess Holdings Inc, Global Brokerage Inc, and other financial markets companies.
– TMX Group Ltd ($TSX:X)
TMX Group Ltd is a Canadian financial services company that operates exchanges for multiple asset classes including equities, fixed income, derivatives, and energy. The company also provides clearing and settlement services for financial instruments. TMX Group Ltd has a market cap of 7.19B as of 2022 and a Return on Equity of 13.93%. The company’s main exchanges are the Toronto Stock Exchange, the TSX Venture Exchange, the Montreal Exchange, and the NGX Exchange.
– MarketAxess Holdings Inc ($NASDAQ:MKTX)
As of 2022, MarketAxess Holdings Inc has a market cap of 8.79B and a Return on Equity of 20.2%. The company operates an electronic trading platform that enables fixed-income market participants to trade corporate bonds and other types of fixed-income instruments.
– Global Brokerage Inc ($OTCPK:GLBR)
Global Brokerage Inc is a financial services company that offers online brokerages and related services to customers around the world. The company has a market capitalization of $137,000 as of 2022 and a return on equity of -19.36%. Global Brokerage Inc provides its customers with access to a variety of financial markets, including equities, options, futures, and foreign exchange. The company offers its services through a variety of online platforms and mobile apps.
Summary
The CME Group is a major global player in the investing and trading world. It has grown to become one of the world’s largest derivatives exchanges with a wide range of financial instruments, enabling investors to manage risk through futures and options contracts. Market volatility has been beneficial for the CME Group, as it provides more opportunities for hedging and other strategies. Some of the key products traded on the CME include equity indices, currency pairs, commodities, interest rates, and energy futures.
With a wide array of investment options, traders can take advantage of price swings to increase their profits or to minimize their losses. The CME also provides sophisticated tools and analytics to help traders analyze their portfolio performance and to adjust their strategies to suit current market conditions.
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