CME Group Net Income Falls 31 Percent as Rates Volume Decreases

CME Group Inc. (CME), the world’s largest futures market, said third-quarter profit fell 31 percent as trading in interest-rate contracts, its largest asset class, declined the same amount.

Net income dropped to $218 million, or 66 cents a share, from $316 million, or 95 cents a share, a year earlier, Chicago- based CME said today in a statement distributed by PR Newswire. Excluding a $16 million income tax provision related to the company’s joint-venture with S&P Dow Jones Indices, profit was 70 cents per share, exceeding the average estimate of 69 cents in a Bloomberg survey of analysts.

Average daily volume and the amount of active trades, known as open interest, declined at CME Group in the quarter compared with a year ago, Richard Repetto, an analyst at Sandler O’Neill & Partners LP, said in a note to clients earlier this month. He expected revenue to decline 13.9 percent on the lower volume and because the joint-venture shifts some operating revenue into non-operating income.

Revenue fell 22 percent to $683 million last quarter, from $874 million a year ago, the company said.

CME Group shares have risen 5.2 percent over the past year through yesterday, when they gained 0.1 percent to $56.55 in New York.

(CME Group will hold a conference call for analysts and investors at 8:30 a.m. New York time. To listen, access the company’s Web site at

To contact the reporter on this story: Matthew Leising in New York at

To contact the editor responsible for this story: Alan Goldstein at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.