Oct 27 (Reuters) – CME Group Inc (CME.O) mentioned on Wednesday its third-quarter revenue greater than doubled as buying and selling within the futures trade operators’ rate of interest and vitality merchandise surged, whereas the approval of exchange-traded funds (ETF) tied to CME bitcoin futures additionally lifted volumes.
Common day by day quantity at CME rose 14% from a yr earlier to 17.8 million contracts, primarily pushed by double-digit development in rate of interest futures, up 53%, and vitality futures, up 18%, as economies across the globe reopen from COVID-19 lockdowns.
CME’s bitcoin futures volumes rose 170% versus the third quarter of 2020, helped by the current regulatory approval and launch of the primary U.S. futures-linked bitcoin. read more
“The launch of ETFs primarily based on CME’s bitcoin futures is validation from the trade of what we have recognized for a while, that CME bitcoin futures are the main supply of bitcoin worth discovery within the trade,” Sean Tully, world head of economic and OTC merchandise, mentioned on a name with analysts.
Up to now in October, common day by day quantity for the corporate’s bitcoin contracts is up 57% versus September, to over 12,000 contracts or greater than 60,000 equal bitcoin value a report $3.5 billion per day, he mentioned.
Internet revenue attributable to CME rose to $926.5 million, or $2.58 per share, within the quarter ended Sept. 30, from $411.7 million, or $1.15 per share, a yr earlier.
Stripping out one-time prices, the corporate earned $1.60 per share, 4 cents under the consensus estimate of analysts, in accordance with IBES information from Refinitiv.
Complete quarterly income was up almost 3% to $1.11 billion, simply off the imply estimate of analysts of $1.15 billion.
Nearly all of the miss pertains to a brand new post-trade providers firm CME collectively launched with IHS Markit, mentioned Daniel Fannon, an analyst at Jefferies.
Reporting by John McCrank in New York and Niket Nishant in Bengaluru; Modifying by Krishna Chandra Eluri, Kirsten Donovan
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