Chicago Mercantile Exchange Holdings Inc. today reported higher net income and revenues for the first quarter.
The CME reported a 23% increase in net revenues to a record US$263 million and a 29% increase in net income to a record US$91 million for first quarter 2006 compared with first quarter 2005. These results were driven by record quarterly volumes across all product lines.
Average daily volume was a record 5 million contracts for first-quarter 2006, a 26% increase from first-quarter 2005. Trading on the CME Globex electronic trading platform grew 31% from 2.6 million contracts per day in first-quarter 2005 to a record 3.4 million per day in first-quarter 2006. Electronic volume represented 69% of total CME volume in the quarter. In March, CME volume was a record 5.3 million contracts per day, up 24% from March 2005, and electronic volume rose 32% to a record 3.7 million contracts per day compared to March 2005.
“CME delivered record results across the board in the first quarter as we continued to broaden the reach of our products to customers around the world,” said CME chairman Terry Duffy. “Through our agreement with NYMEX, which adds energy products to the CME Globex electronic trading platform, we will be the only exchange in the world providing market participants with a complete array of benchmark derivatives products. As we continue to offer our customers products with deep liquidity and an unparalleled technology platform, we will further develop our business and drive future growth.”
“We continue to invest in new technology that will spur further growth in electronic trading volume through increased speed and access for all users of our markets,” said CME CEO Craig Donohue.
Clearing and transaction fees rose 25% to US$201 million from US$161 million a year ago. Record quarterly average daily volume across all product lines fueled this growth. CME posted a 38% increase in foreign exchange product volume, to a record 407,000 contracts per day. In addition, CME interest rate volume increased 31% compared with the same quarter a year ago, averaging a record 2.9 million contracts per day; CME E-mini products grew 14%, averaging a record 1.4 million contracts per day; and CME commodity products increased by 42% to a record 73,000 contracts per day.
Processing services generated US$18 million in the first quarter, versus US$17 million in first-quarter 2005. Quotation data fees were US$20 million, versus US$18 million in first-quarter 2005, due primarily to the price increase put in place at the beginning of January 2006.