- Summary:
- CME Group, the biggest derivatives exchange in the world has reported a 4% increase in its ADV during January 2023.
CME Group, the biggest derivatives exchange in the world, has reported a 4% increase in its ADV. This increase occurred in January 2023 as per the latest stats report by the Chicago Mercantile Exchange. Data also shows that the total FX trading volume remained at 0.8 million during last month.
Last week, CME Group also released its quarterly financial for Q4 2022. The earnings per share exceeded the expectation and stood at $1.92. The positive results can be attributed to a significant increase in trading volume during the last four months. During this time, the Average Daily Trading Volume (ADV) increased for four asset classes.
On YoY basis, the bottom line of CME Group increased by 19.3%, along with a $1.2 billion increase in revenue. The total dividends for the financial year came at $3 billion. The Q4 adjusted earnings per share of $1.90 were also higher than the Zach Consensus estimate of $1.90.
FX ADV AT CME Group Increases in January 2023
The trading venue also recorded an uptick in Fx futures and options volume throughout January 2023. The Average Daily Trading Volume remained at 4.8 million during the last month, which was 4% higher than the previous month.
Pail Houston, the Global Head of FX referred to the elevated volatility and increased adoption as the reasons behind the growth. He also mentioned that the average open interest for the Forex also rose by 1% in January.
The CME stock (NASDAQ: CME) has also been on an uptrend since the start of 2023. The global derivatives exchange currently boasts a market cap of $67 billion. CME Group stock price has increased by more than 10% since the start of this year. This positive price action can be attributed to the increasing trading volumes across the whole listed products. Currently, CME hosts derivatives in commodities, currencies, interest rates, and cryptocurrency domains.
As per the latest CME Group news, the exchange has announced the listing of new Bitcoin futures contracts. The new contracts are expected to provide a convenient way to retail investors to invest in the top cryptocurrency. The newly announced product is still awaiting regulatory approval and is expected to trade from March 13.