(Reuters) – CME Group reported its second-quarter profit above Wall Street estimates on Wednesday as uncertainty in markets helped the exchange operator notch record trading volumes.
Latest economic data showing signs of easing inflation has fueled hopes of a possible rate cut in the current half of the year that has helped markets reach new highs.
“As escalating uncertainties drove an increased need for risk management across all asset classes, CME Group achieved record Q2 volume and generated record revenue, adjusted net income and adjusted earnings per share,” Chairman and Chief Executive Officer Terry Duffy said in a statement.
CME Group’s average daily volume (ADV) grew 13.5% year over year to 25.9 million contracts per day, a record for the second quarter.
Clearing and transaction fees, from which CME makes the most of its revenue, was up nearly 12% to $1.25 billion. Its total revenue rose nearly 13% to $1.53 billion.
On an adjusted basis, the exchange operator recorded a profit of $2.56 per share, in the quarter. Analysts on average had expected a profit of $2.53 per share, according to LSEG data.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Maju Samuel)
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