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CME Group (CME) August ADV Increases at Three Product Lines

CME Group's (CME) average daily volume of 17.5 million contracts per day increases 7% year over year due to higher volumes in three of the six product...

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CME Group Inc. CME reported an impressive average daily volume (ADV) for August 2021. The average daily volume of 17.5 million contracts per day was up 7% year over year due to higher volumes in three of the six product lines. There were 22 trading days in August this year.



Interest rate volume of 8.8 million contracts per day increased 23%. Energy volume of 2.1 million contracts increased 15% year over year. Moreover, Equity index volume of 4.2 million contracts per day was up 2%. However, Metals volume of 0.5 million contracts per day decreased 54%. Foreign exchange volumes decreased 14% to about 0.6 million contracts per day and Agricultural volume of 1.2 million contracts per day decreased 15%.



Volume at CME Group was backed by solid operating leverage, and a compelling suite of products is expected to help CME Group record higher volume, going forward.  The company maintains a solid market share of about 90% in global futures trading and clearing services.



Expansion of futures products in the emerging markets plus an increase in non-transaction- related opportunities as well as OTC offerings should continue to contribute modestly to the top line in the years ahead.



Increasing electronic trading volume adds scalability and hence leverage to CME Group’s operating model. Efforts to expand and cross-sell through strategic alliances, acquisitions, new product initiatives, and a strong global presence will likely drive growth.

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Price Performance

Shares of CME Group, carrying a Zacks Rank #3 (Hold), have underperformed the industry year-to-date period. The stock has gained 8.5% compared with the industry’s increase of 19.3%. Its solid fundamentals will likely help the stock regain its growth momentum.

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August Volumes of Other Securities Exchanges

Nasdaq NDAQ reported August volumes. While U.S. equity options volume increased 14.9% year over year to 247 million contracts, European options and futures volume decreased 8.2% year over year to 4.5 million contracts.

Stocks to Consider

Investors interested in the finance sector can look at OTC Markets Group Inc. OTCM and Equifax, Inc. EFX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



Earnings of OTC Markets surpassed estimates in each of the last four quarters, with the average earnings beat being 35.73%.



Earnings of Equifax surpassed estimates in each of the last four quarters, with the average earnings beat being 17.71%.



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