CME Group Inc. (NASDAQ: CME) today reported total GAAP revenues increased 20 percent to $681 million, and GAAP operating income increased 22 percent to $421 million. Net income for the third quarter was $169 million, down 16 percent versus the prior year due primarily to an income tax adjustment and other non-core items. Diluted earnings per share on a GAAP basis were $2.81. The 2008 GAAP results reflect the operations of both Chicago Mercantile Exchange (CME) and Board of Trade of the City of Chicago (CBOT), as well as the results of NYMEX Holdings, Inc. (NYMEX) after August 22, 2008 when the acquisition closed.
Pro forma non-GAAP diluted earnings per share in the third quarter were $4.13. All pro forma results reflect the operations of both CME Group Inc. and NYMEX, as if they were combined for all periods reported. Additionally, third-quarter 2008 pro forma non-GAAP results exclude a net impact of $76 million of merger-related and other items, which are listed in detail in Table 1. Total revenues increased six percent to $787 million and total operating expenses decreased three percent compared with the same period last year at $269 million. A strong rate per contract and continued focus on expense discipline helped the company reach third-quarter operating income of $518 million, an increase of 11 percent from $468 million for the year-ago period, and its second highest pro forma operating margin ever, at 66 percent. Operating margin is defined as operating income as a percentage of total revenues. Pro forma net income was $278 million for third-quarter 2008. Pro forma measures do not replace and are not a substitute for GAAP financial results. They are provided to improve overall understanding of current financial performance and to provide a meaningful comparison with prior periods. A full reconciliation of these pro forma results is included with the attached financial statements.
"CME Group's record quarterly volumes in our E-mini and FX complexes in the third quarter highlight the diversity and strength of our product base," said CME Group Executive Chairman Terry Duffy. "We are focused on continued innovation across our product lines and our technology and to that end are very excited about the strategic opportunities offered by the completion of the NYMEX acquisition. NYMEX's energy and metals products, as well as the ClearPort over-the-counter clearing platform, provide additional ways for our customers to manage risk during even the most challenging market conditions. By combining these offerings with the extensive distribution and strong international presence established by CME, we look forward to ongoing growth in these globally significant products."
All references to volume and rate per contract information in the text of this document exclude our non-traditional TRAKRS products, for which CME Group receives significantly lower clearing fees than other CME Group products, and Swapstream products.
"At a time of unprecedented turmoil in financial markets, CME Group continues to provide the transparency, liquidity and security that enable our customers to manage their risks effectively," said CME Group Chief Executive Officer Craig Donohue. "Our strong third-quarter results underscore the value of what we provide to our customers and the strength of our business model when compared to other financial sector companies. CME Group has successfully guaranteed the performance of every contract on our exchanges for more than a century, ensuring that no customer has ever suffered a loss due to a clearing member default. As customers in the over-the-counter derivative markets move increasingly toward more regulated, transparent and centrally-cleared markets, CME Group is extremely well positioned to benefit."
CME Group Inc. Third-Quarter 2008 Results
Financial Highlights:
GAAP
($s in millions,
except per share) Q3 FY08 Q3 FY07 Y/Y YTD FY08 YTD FY07 Y/Y
Revenues $681 $565 20% $1,869 $1,227 52%
Expenses $260 $220 18% $705 $488 44%
Operating Income $421 $345 22% $1,164 $739 58%
Operating Margin % 61.8% 61.1% 62.3% 60.2%
Net Income $ 169 $202 -16% $653 $457 43%
Diluted EPS $2.81 $3.87 -27% $11.61 $11.18 4%
Pro Forma Non-GAAP
($s in millions,
except per share Q3 FY08 Q3 FY07 Y/Y YTD FY08 YTD FY07 Y/Y
Revenues $787 $744 6% $2,360 $2,054 15%
Expenses $269 $276 -3% $823 $835 1%
Operating Income $518 $468 11% $1,537 $1,219 26%
Operating Margin % 65.8% 62.9% 65.1% 59.4%
Net Income $278 $269 3% $844 $699 21%
Diluted EPS $4.13 $4.00 3% $12.59 $10.36 22%
NOTE: See the CME Group Inc. Reconciliation of GAAP to Pro Forma Non-GAAP Measures for detail related to the adjustments made to reach the pro forma results.
Table 1 - Net Impacts Excluded from Third-Quarter 2008 Pro Forma Non-GAAP Results
($s in millions) Q3 FY08 Termination of the company's FX hedge associated with its investment in BM&F BOVESPA SA (BM&F) $7 Valuation of guarantee for holders of the Chicago Board Options Exchange (CBOE) exercise right privilege (ERP) 8 Write downs of FXMarketSpace and Swapstream, and sale of legacy CBOT metals (28) Revaluation of the company's securities lending portfolio (16) Other (9) Decrease in income before income taxes (38) Income tax benefit of above items 10 Revaluation of the company's deferred tax liabilities (48) Decrease in net income $(76) Pro Forma Non-GAAP Third-Quarter 2008 Financial Results
Third-quarter 2008 average daily volume of 13.2 million contracts per day drove $665 million in clearing and transaction fee revenue, an increase of four percent from $641 million in third-quarter 2007. Third-quarter 2008 quotation data fees were up 24 percent to $92 million, which included $4 million from a market data subscriber audit.
The average rate per contract for CME Group, excluding NYMEX for the entire period, was $0.659 for the quarter, up six percent compared with the average rate per contract of $0.622 in third-quarter 2007. The total pro forma average gross rate per contract for the NYMEX business was $1.567 for the quarter, up one percent compared with $1.547 in third-quarter 2007.
Third-quarter 2008 pro forma non-operating expense was $28 million. Investment income included $9 million from a dividend payment associated with the company's BM&F investment. Securities lending expense included $6 million expense related to the revaluation of a portion of the company's securities lending portfolio. Additionally, the third-quarter 2008 effective tax rate was 43.3 percent.
As of September 30, the company had $710 million of cash and marketable securities and $2.9 billion of debt. Since the $1.1 billion share buyback program was announced in June, the company has expended approximately $100 million on repurchases through October 28.
Company Guidance
The company expects total pro forma operating expenses in the fourth quarter to range from $270 million to $275 million. Fourth-quarter capital expenditures are expected to range from $85 million to $95 million. In addition, the expected effective tax rate for fourth-quarter 2008 and the full-year 2009 will range between 41 percent and 42 percent.
CME Group will hold a conference call to discuss third-quarter results at 5:00 p.m. Eastern Time today. A live audio Webcast of the call will be available on the Investor Relations section of CME Group's Web site at http://www.cmegroup.com/. An archived recording will be available for up to two months after the call.
CME Group (http://www.cmegroup.com/) is the world's largest and most diverse derivatives exchange. Building on the heritage of CME, CBOT and NYMEX, CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. By acting as the buyer to every seller and the seller to every buyer, CME Clearing virtually eliminates counterparty credit risk. CME Clearing also offers $7 billion in financial safeguards to help mitigate systemic risk, providing the security and confidence market participants need to operate, invest and grow. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investment products such as weather and real estate. CME Group is listed on NASDAQ under the symbol "CME."
The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex and E- mini, are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. NYMEX, New York Mercantile Exchange, and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at http://www.cmegroup.com/.
Statements in this press release that are not historical facts are forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. Among the factors that might affect our performance are: our ability to realize the benefits and control the costs of our merger with NYMEX Holdings, Inc. and our ability to successfully integrate the businesses of CME Group and NYMEX Holdings, including the fact that such integration may be more difficult, time consuming or costly than expected and revenues following the merger may be lower than expected and expected cost savings from the merger may not be fully realized within the expected time frames or at all; increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities; our ability to keep pace with rapid technological developments, including our ability to complete the development and implementation of the enhanced functionality required by our customers; our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services; our ability to adjust our fixed costs and expenses if our revenues decline; our ability to generate future revenues from processing services; our ability to maintain existing customers and attract new ones; our ability to expand and offer our products in foreign jurisdictions; changes in domestic and foreign regulations; changes in government policy, including policies relating to common or directed clearing, changes as a result of a combination of the Securities and Exchange Commission and the Commodity Futures Trading Commission, or changes relating to the recently enacted Emergency Economic Stabilization Act of 2008; the costs associated with protecting our intellectual property rights and our ability to operate our business without violating the intellectual property rights of others; our ability to generate revenue from our market data that may be reduced or eliminated by decreased demand or the growth of electronic trading; changes in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of customers (whether the customer receives member or non-member fees or participates in one of our various incentive programs) and the impact of our tiered pricing structure; the ability of our financial safeguards package to adequately protect us from the credit risks of clearing members; the ability of our compliance and risk management methods to effectively monitor and manage our risks; changes in price levels and volatility in the derivatives markets and in underlying fixed income, equity, foreign exchange and commodities markets; economic, political, geopolitical and market conditions, including the recent volatility of the capital and credit markets; natural disasters and other catastrophes, our ability to accommodate increases in trading volume and order transaction traffic without failure or degradation of performance of our systems; our ability to execute our growth strategy and maintain our growth effectively; our ability to manage the risks and control the costs associated with our acquisition, investment and alliance strategy; our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business; industry and customer consolidation; decreases in trading and clearing activity; the imposition of a transaction tax on futures and options on futures transactions; the seasonality of the futures business; changes in regulation or our industry as a result of a combination with the Securities and Exchange Commission and the Commodity Futures Trading Commission and changes in the regulation of our industry with respect to speculative trading in commodity interests and derivatives contracts. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q and our Current Report on Form 8-K, filed on October 29, 2008, which are available in the Investor Relations section of the CME Group Web site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
08-193 CME-E
CME Group Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)
September 30, December 31,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $582,421 $845,312
Collateral from securities lending 909,360 2,862,026
Marketable securities, including
pledged securities 127,322 203,308
Accounts receivable, net of allowance 339,941 187,487
Other current assets 92,893 55,900
Cash performance bonds and
security deposits 7,506,397 833,022
Total current assets 9,558,334 4,987,055
Property, net of accumulated
depreciation and amortization 660,795 377,452
Intangible assets - trading products 16,959,000 7,987,000
Intangible assets - other, net of
accumulated amortization 3,443,331 1,796,789
Goodwill 7,765,049 5,049,211
Other assets 868,543 108,690
Total Assets $39,255,052 $20,306,197
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $53,130 $58,965
Payable under securities lending
agreements 947,073 2,862,026
Short-term debt 503,703 164,435
Other current liabilities 598,321 157,615
Cash performance bonds and
security deposits 7,506,397 833,022
Total current liabilities 9,608,624 4,076,063
Long-term debt 2,412,817 -
Deferred tax liabilities 8,090,348 3,848,240
Other liabilities 114,503 76,257
Total Liabilities 20,226,292 8,000,560
Shareholders' equity 19,028,760 12,305,637
Total Liabilities and Shareholders'
Equity $39,255,052 $20,306,197
CME Group Inc. and Subsidiaries
Consolidated Statements of Income
(in thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenues
Clearing and transaction
fees $558,721 $477,840 $1,542,280 $988,803
Quotation data fees 75,644 45,821 192,281 95,163
Processing services 17,910 17,981 53,944 90,300
Access and communication
fees 10,894 10,487 32,194 25,862
Other 17,783 13,093 48,551 26,434
Total Revenues 680,952 565,222 1,869,250 1,226,562
Expenses
Compensation and benefits 84,581 78,462 231,458 191,591
Communications 11,496 12,044 39,118 29,973
Technology support services 11,929 15,747 47,041 33,284
Professional fees and
outside services 16,958 15,046 47,783 36,328
Amortization of purchased
intangibles 29,047 15,964 63,158 16,592
Depreciation and
amortization 34,087 32,872 102,869 72,661
Occupancy and building
operations 18,960 14,647 52,904 32,835
Licensing and other fee
agreements 19,253 11,471 44,792 25,300
Restructuring 49 4,512 2,065 4,512
Other 33,821 19,082 73,722 44,925
Total Expenses 260,181 219,847 704,910 488,001
Operating Income 420,771 345,375 1,164,340 738,561
Non-Operating Income and Expense
Investment income 17,986 21,027 41,409 57,727
Gains (losses) on
derivative investments 7,504 60 (7,758) 60
Securities lending
interest income 8,503 23,150 32,147 91,560
Securities lending
interest and other costs (28,906) (21,710) (48,211) (88,801)
Interest and other
borrowing costs (17,884) (1,420) (21,590) (1,444)
Guarantee of exercise
right privileges 8,016 (28,499) 12,789 (28,499)
Equity in losses of
unconsolidated
subsidiaries (20,057) (3,663) (27,927) (10,054)
Other non-operating
expense 67 - (8,398) -
Total Non-Operating (24,771) (11,055) (27,539) 20,549
Income Before Income Taxes 396,000 334,320 1,136,801 759,110
Income tax provision (227,309) (132,748) (483,380) (301,635)
Net Income $168,691 $201,572 $653,421 $457,475
Earnings per Common Share:
Basic $2.82 $3.90 $11.66 $11.28
Diluted $2.81 $3.87 $11.61 $11.18
Weighted Average Number of
Common Shares:
Basic 59,870 51,748 56,054 40,556
Diluted 60,086 52,103 56,302 40,920
CME Group Inc. and Subsidiaries
Pro Forma Non-GAAP Consolidated Statements of Income
(in thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenues
Clearing and transaction
fees $665,158 $641,452 $2,008,169 $1,749,189
Quotation data fees 91,616 73,850 261,379 219,046
Processing services 582 558 1,619 1,502
Access and communication
fees 11,076 10,751 32,965 29,865
Other 18,306 17,109 55,592 54,069
Total Revenues 786,738 743,720 2,359,724 2,053,671
Expenses
Compensation and benefits 90,495 100,176 272,984 295,941
Communications 12,094 14,235 42,355 42,436
Technology support
services 13,147 18,633 52,675 55,982
Professional fees and
outside services 18,417 18,712 57,665 54,876
Amortization of purchased
intangibles 31,323 30,756 92,470 92,031
Depreciation and
amortization 34,848 35,084 105,459 108,315
Occupancy and building
operations 21,652 18,973 64,254 55,743
Licensing and other fee
agreements 25,155 21,733 70,643 64,447
Other 21,771 17,535 64,366 64,814
Total Expenses 268,902 275,837 822,871 834,585
Operating Income 517,836 467,883 1,536,853 1,219,086
Non-Operating Income and Expense
Investment income 19,588 26,831 50,207 85,633
Gains (losses) on
derivative investments 70 60 129 60
Securities lending
interest income 10,508 43,105 46,749 172,008
Securities lending
interest and other costs (15,011) (40,532) (44,682) (166,663)
Interest and other
borrowing costs (38,081) (38,081) (114,243) (114,243)
Equity in losses of
unconsolidated
subsidiaries (5,106) (5,767) (17,212) (17,469)
Total Non-Operating (28,032) (14,384) (79,052) (40,674)
Income Before Income Taxes 489,804 453,499 1,457,801 1,178,412
Income tax provision (211,996) (184,342) (613,658) (479,345)
Net Income $277,808 $269,157 $844,143 $699,067
Earnings per Diluted Common
Share $4.13 $4.00 $12.59 $10.36
Weighted Average Number of
Diluted Common Shares* 67,325 67,233 67,062 67,488
Note: Pro Forma Non-GAAP results exclude merger-related costs and other
items listed in Table 1 in the text of the press release. All pro forma
results reflect both the operating results of CME Group and NYMEX, as if
they were combined for all periods presented. See CME Group Inc.
Reconciliation of GAAP to Pro Forma Non-GAAP Measures for detail on the
adjustments made to reach the pro forma results.
*Weighted average number of diluted common shares includes merger-related
shares converted or issued for the entire period reported.
CME Group Inc. and Subsidiaries
Reconciliation of GAAP to Pro Forma Non-GAAP Measures
(in thousands)
Quarter Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
GAAP Results
Revenues $680,952 $565,222 $1,869,250 $1,226,562
Expenses 260,181 219,847 704,910 488,001
Operating income 420,771 345,375 1,164,340 738,561
Non-operating income and
expense (24,771) (11,055) (27,539) 20,549
Income before income taxes 396,000 334,320 1,136,801 759,110
Income tax provision (227,309) (132,748) (483,380) (301,635)
Net Income $168,691 $201,572 $653,421 $457,475
Pro Forma Adjustments
Revenues:
CBOT pre-merger revenue $- $22,720 $- $414,881
NYMEX pre-merger revenue 124,264 173,201 543,949 501,026
Intercompany revenue
elimination(1) (10,727) (17,423) (45,724) (88,798)
FXMarketSpace write down (7,751) (7,751)
Total Pro Forma Revenue
Adjustment 105,786 178,498 490,474 827,109
Expenses:
CBOT pre-merger expense - 11,247 - 219,296
NYMEX pre-merger expense 81,522 65,263 229,242 199,961
Intercompany expense
elimination (1) (10,727) (17,423) (45,724) (88,798)
Amortization of intangibles (2) 5,553 15,629 32,589 75,379
Depreciation adjustment from
building life change (3) 971 1,476 3,923 4,428
Swapstream writeoff (14,315) - (14,315) -
Loss on sale of metals (2,780) - (2,780) -
FXMS writeoff (2,616) - (2,616) -
Other (4) (48,887) (20,202) (82,358) (63,682)
Total Pro Forma Expense
Adjustment 8,721 55,990 117,961 346,584
Adjustment to operating income 97,065 122,508 372,513 480,525
Non-operating income and expense:
CBOT premerger non-operating
income - 690 - 13,146
NYMEX premerger non-operating
income (226) 2,506 32,426 (16,925)
Interest on debt acquired for
NYMEX deal (19,294) (35,024) (88,577) (111,905)
Equity investment unusual gain
or loss (5) 15,942 - (14,699) 25,962
Securities lending writedown 15,746 - 15,746 -
ERP Guarantee (6) (8,016) 28,499 (12,789) 28,499
BM&F (7) (7,413) - 16,380 -
Total Pro Forma Non-Operating
Income and Expense Adjustment (3,261) (3,329) (51,513) (61,223)
Adjustment to income before
income taxes 93,804 119,179 321,000 419,302
Adjustment to income tax
provision 15,313 (51,594) (130,278) (177,710)
Adjustment to net income $109,117 $67,585 $190,722 $241,592
Pro Forma Non-GAAP Results
Revenues $786,738 $743,720 $2,359,724 $2,053,671
Expenses 268,902 275,837 822,871 834,585
Operating income 517,836 467,883 1,536,853 1,219,086
Non-operating income and
expense (28,032) (14,384) (79,052) (40,674)
Income before income taxes 489,804 453,499 1,457,801 1,178,412
Income tax provision (8) (211,996) (184,342) (613,658) (479,345)
Net Income $277,808 $269,157 $844,143 $699,067
Notes:
(1) Eliminate clearing services provided to CBOT prior to the merger and
processing services provided prior to the NYMEX acquisition.
(2) Add amortization of intangible assets recorded in purchase of CBOT
and NYMEX.
(3) Adjust depreciation for changes in value and useful life of building
acquired from NYMEX.
(4) Reverse effect of restructuring, accelerated depreciation,
integration and legal expenses related to the merger with CBOT and
acquisition of NYMEX. Also removes other merger-related transaction costs
that were expensed and transaction costs related to the acquisition of
CMA.
(5) Write-down of FXMarketSpace and Optionable as well as a gain related
to TSX Group.
(6) Reverse impact of exercise right privilege guarantee.
(7) Related to change in value of the currency hedge associated with the
company's BM&F/Bovespa investment prior to termination as well as
transaction costs of BM&F/Bovespa investment.
(8) Pro forma adjustments are tax affected at 41.5%, the mid point of CME
Group's estimated effective tax rate. Also, a first quarter 2008 tax
benefit of $38.6 million due to a change in Illinois state tax treatment
for apportionment of revenues sourced within the state has been removed
for proforma purposes. Finally, a third quarter 2008 non-cash tax expense
of $48.3 million due to adjusting deferred taxes related to the NYMEX
acquisition has also been removed for proforma purposes.
CME Group Inc.
Quarterly Operating Statistics
3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
Trading Days 63 64 61 64 64
Quarterly Average Daily Volume (ADV)
CME Group Pro Forma ADV (Legacy CME, CBOT and NYMEX combined, in thousands)
3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
Total 14,161 12,113 15,540 12,876 13,236
CME Group ADV (Legacy CME and CBOT combined for periods prior to 4Q07,
in thousands)
Product Line 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
Interest rates 8,060 6,290 8,251 6,467 6,030
Equity E-mini 3,057 2,817 3,628 2,833 3,638
Equity standard-size 202 166 201 161 204
Foreign exchange 635 561 640 665 710
Commodities & alternative
investments 716 740 949 933 822
Total 12,670 10,574 13,669 11,060 11,404
Venue
Open outcry 2,652 1,876 2,336 1,836 1,602
Electronic (excluding TRAKRS) 9,806 8,528 11,097 9,054 9,641
Privately negotiated 212 169 236 170 161
Total 12,670 10,574 13,669 11,060 11,404
NYMEX/COMEX ADV (in thousands)
3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
NYMEX floor 229 229 257 238 193
NYMEX electronic 687 704 814 865 831
COMEX floor 36 42 47 38 36
COMEX electronic 114 147 205 172 214
NYMEX ClearPort 351 310 473 418 492
Other 74 107 75 85 65
Total 1,491 1,539 1,870 1,816 1,831
Average Rate Per Contract (RPC)
CME Group RPC (Legacy CME and CBOT combined for entire periods reported)
Product Line 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
Interest rates $0.519 $0.530 $0.505 $0.522 $0.521
Equity E-mini 0.673 0.687 0.684 0.668 0.677
Equity standard-size 1.451 1.427 1.506 1.453 1.486
Foreign exchange 0.951 0.985 0.927 0.907 0.936
Commodities & alternative
investments 1.032 1.074 1.119 1.134 1.154
Average RPC (excluding
TRAKRS) $0.622 $0.648 $0.630 $0.648 $0.659
Venue
Open outcry $0.473 $0.517 $0.553 $0.572 $0.607
Electronic (excluding TRAKRS) 0.613 0.629 0.609 0.629 0.637
Privately negotiated 2.878 3.057 2.345 2.427 2.526
NYMEX/COMEX RPC
3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008
NYMEX floor 1.446 1.469 1.594 1.606 1.384
NYMEX electronic 1.254 1.204 1.324 1.304 1.315
COMEX floor 1.341 1.465 1.640 1.712 1.624
COMEX electronic 1.503 1.549 1.630 1.706 1.719
NYMEX ClearPort 1.670 1.151 1.490 1.571 1.642
Other 2.016 1.809 1.923 1.854 1.928
Total Pro Forma Average
Net Rate 1.441 1.388 1.472 1.479 1.488
Direct Transaction Cost 0.106 0.083 0.098 0.077 0.078
Total Pro Forma Average
Gross Rate 1.547 1.471 1.570 1.556 1.567
Note: All CME Group volume and rate per contract data is based upon pro
forma results, including the operations of CME Group and NYMEX as if they
were combined for the entire period reported. All data excludes our non-
traditional TRAKRS products, for which CME Group receives significantly
lower clearing fees than other CME Group products. Additionally, all data
excludes Swapstream products.
