CME Group Inc. (Nasdaq: CME) today reported that total fourth-quarter GAAP revenues increased 31 percent to $692 million, and GAAP operating income increased 33 percent to $418 million. The company has taken a pre-tax, non-cash impairment charge of $275 million on its cross-equity investment in BM&F Bovespa SA, due to the decline in BM&F Bovespa's current share price relative to original investment value. On a relative equity swap exchange basis, the economic value of CME Group's equity stake in BM&F Bovespa has actually increased since the effective date of the agreement. While management of the company has determined that an impairment charge is appropriate under GAAP standards, management believes BM&F Bovespa's stock price reflects current cyclical factors in the public company exchange sector and continues to present attractive long-term financial and strategic opportunities for CME Group. Additionally, CME Group and BM&F Bovespa are on track with the implementation of reciprocal order routing arrangements to facilitate increased customer transaction flow to their respective trading platforms.
As a result of the impairment charge, GAAP net income for the fourth quarter was $62 million and diluted earnings per share on a GAAP basis were $0.93. In conjunction with this charge, stockholders' equity was reduced by $94 million due to unfavorable movements in the Brazilian real compared with the U.S. dollar. Aside from the BM&F Bovespa impairment charge, the fourth- quarter GAAP results also include $17.5 million of merger-related items. 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 New York Mercantile Exchange, Inc. (NYMEX) after August 22, 2008 when the acquisition closed.
Pro forma non-GAAP diluted earnings per share in the fourth quarter were $3.58, the same as the prior year period. All pro forma results reflect the operations of both CME Group Inc. and NYMEX, as if they were combined for all periods reported. Additionally, fourth-quarter 2008 pro forma non-GAAP results exclude the impairment charge related to BM&F Bovespa and the merger- related items listed above. Total revenues increased one percent to $692 million, and the combined average rate per contract increased to 86 cents, up from 75 cents in fourth quarter 2007, primarily due to an increased proportion of higher priced contracts. Pro forma total operating expenses decreased three percent to $258 million, compared with the same period last year. A higher rate per contract and continued focus on expense discipline helped the company reach fourth-quarter operating income of $433 million, an increase of three percent from $419 million for the year-ago period, and operating margin of 63 percent, compared with 61 percent for fourth-quarter 2007. Operating margin is defined as operating income as a percentage of total revenues. Pro forma net income increased one percent to $239 million for fourth-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 fourth-quarter and full-year 2008 pro forma results is included with the attached financial statements.
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.
Full-year 2008 pro forma non-GAAP revenues increased 11 percent to $3.1 billion and operating income increased 20 percent to $2.0 billion compared with 2007. Pro forma operating margin grew to 65 percent in 2008, compared with 60 percent in 2007. Full-year pro forma net income and diluted earnings per share both increased 16 percent, compared with the prior year, to $1.1 billion and $16.17 respectively.
"CME Group's revenue growth at a time of global recession highlights the value of our product diversity -- which includes benchmark contracts in every asset class -- to address customer needs under a variety of market conditions," said CME Group Executive Chairman Terry Duffy. "Given the recent market dislocations, we see opportunities to reach out to non-traditional users of futures products, extend our technology and sales efforts globally and cross-sell our products. While we are aware of the challenges still facing financial markets, we also are confident that our long-term growth prospects are strong and we will continue to execute our strategy to build on the opportunities ahead."
"Despite the very challenging economic and financial market conditions in the fourth quarter, CME Group's overall performance compared favorably with other financial sector leaders," said CME Group Chief Executive Officer Craig Donohue. "We grew revenues, reduced expenses, and increased margins, while making significant progress and remaining on track with synergy achievement in our CBOT and NYMEX integrations. Although dislocations in credit and lending markets have significantly impacted our interest rate complex, our other product lines, especially equity indexes, showed solid volume growth. In addition, the volume of business done on our over-the-counter ClearPort platform increased dramatically as we further expanded the range of products we offer to OTC market participants. Looking forward, we will continue to focus on expense discipline while providing customers with the best ways to manage risk at a time of economic uncertainty."
CME Group Inc. Fourth-Quarter and Full-Year 2008 Results
Financial Highlights:
GAAP
($s in millions,
except per share) Q4 FY08 Q4 FY07 Y/Y FY08 FY07 Y/Y
Revenues $692 $530 31% $2,561 $1,756 46%
Expenses $274 $216 27% $979 $704 39%
Operating Income $418 $313 33% $1,582 $1,052 50%
Operating Margin % 60.4% 59.2% 61.8% 59.9%
Net Income $62 $201 -69% $715 $659 9%
Diluted EPS $0.93 $3.75 -75% $12.13 $14.93 -19%
Pro Forma Non-GAAP
($s in millions,
except per share) Q4 FY08 Q4 FY07 Y/Y FY08 FY07 Y/Y
Revenues $692 $687 1% $3,051 $2,740 11%
Expenses $258 $268 -3% $1,081 $1,102 -2%
Operating Income $433 $419 3% $1,970 $1,638 20%
Operating Margin % 62.6% 61.0% 64.6% 59.8%
Net Income $239 $236 1% $1,084 $935 16%
Diluted EPS $3.58 $3.58 0% $16.17 $13.93 16%
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.
Pro Forma Non-GAAP Fourth-Quarter 2008 Financial Results
Fourth-quarter 2008 average daily volume of 10.4 million contracts drove
$573 million in clearing and transaction fee revenue, down slightly from $583
million in fourth-quarter 2007. Fourth-quarter 2008 quotation data fees were
up 17 percent to $87 million. The average rate per contract for CME Group,
excluding NYMEX for the entire period, was $0.713 for the quarter, up 10
percent compared with the average rate per contract of $0.648 in fourth-
quarter 2007. The total pro forma average gross rate per contract for the
NYMEX business was $1.671 for the quarter, up 14 percent compared with $1.471
in fourth-quarter 2007.
Fourth-quarter 2008 pro forma non-operating expense was $30 million,
driven primarily by interest expense and borrowing costs of $35 million.
Additionally, the fourth-quarter 2008 effective tax rate was 40.7 percent.
As of December 31, the company had $608 million of cash and marketable
securities and $3.2 billion of debt. Since the $1.1 billion share buyback
program was announced in June, the company has purchased shares with an
approximate aggregate value of $250 million. The share buyback authorization
remains in place, however the company has stopped purchasing shares in the
near-term and is focused on paying down debt.
CME Group will hold a conference call to discuss fourth-quarter and full-
year 2008 results at 8:30 a.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 $8 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, E-
mini and CME ClearPort 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 and New York Mercantile Exchange 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 or declines in subscriptions;
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 unfavorable resolution of material
legal proceedings, the seasonality of the futures business; 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.
CME-E
CME Group Inc. and Subsidiaries
Consolidated Balance Sheets
(dollars in thousands)
December 31, December 31,
2008 2007
ASSETS
Current Assets:
Cash and cash equivalents $297,895 $845,312
Collateral from securities lending 426,958 2,862,026
Marketable securities, including
pledged securities 310,077 203,308
Accounts receivable, net of allowance 234,001 187,487
Other current assets 170,122 55,900
Cash performance bonds and security
deposits 17,653,513 833,022
Total current assets 19,092,566 4,987,055
Property, net of accumulated depreciation
and amortization 707,215 377,452
Intangible assets - trading products 16,982,000 7,987,000
Intangible assets - other, net of
accumulated amortization 3,370,961 1,796,789
Goodwill 7,502,805 5,049,211
Other assets 477,265 108,690
Total Assets $48,132,812 $20,306,197
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $71,012 $58,965
Payable under securities lending
agreements 456,833 2,862,026
Short-term debt 802,900 164,435
Other current liabilities 184,337 157,615
Cash performance bonds and security
deposits 17,653,513 833,022
Total current liabilities 19,168,595 4,076,063
Long-term debt 2,413,029 -
Deferred tax liabilities 7,728,286 3,848,240
Other liabilities 134,333 76,257
Total Liabilities 29,444,243 8,000,560
Shareholders' equity 18,688,569 12,305,637
Total Liabilities and Shareholders'
Equity $48,132,812 $20,306,197
CME Group Inc. and Subsidiaries
Consolidated Statements of Income
(in thousands, except per share amounts)
Quarter Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Revenues
Clearing and
transaction fees $573,086 $438,517 $2,115,366 $1,427,320
Quotation data fees 87,252 49,891 279,533 145,054
Processing services 129 16,104 54,073 106,404
Access and communication
fees 11,424 10,649 43,618 36,511
Other 19,878 14,378 68,429 40,812
Total Revenues 691,769 529,539 2,561,019 1,756,101
Expenses
Compensation and
benefits 86,096 71,756 317,554 263,347
Communications 13,221 13,498 52,339 43,471
Technology support
services 12,570 17,196 59,611 50,480
Professional fees
and outside
services 24,161 16,814 71,944 53,142
Amortization of
purchased
intangibles 35,524 17,286 98,682 33,878
Depreciation and
amortization 34,472 32,992 137,341 105,653
Occupancy and
building
operations 18,484 15,368 71,388 48,203
Licensing and other
fee agreements 25,467 10,351 70,259 35,651
Restructuring 2,774 4,380 4,839 8,892
Other 21,145 16,551 94,867 61,476
Total Expenses 273,914 216,192 978,824 704,193
Operating Income 417,855 313,347 1,582,195 1,051,908
Non-Operating Income and
Expense
Investment income 4,105 15,430 45,514 73,157
Impairment of long-
term investment (274,507) (274,507)
Gains (losses) on
derivative
investments (390) (158) (8,148) (98)
Securities lending
interest income 6,176 29,934 38,323 121,494
Securities lending
interest and other
costs (3,511) (27,067) (51,722) (115,868)
Interest and other
borrowing costs (34,911) (2,185) (56,501) (3,629)
Guarantee of
exercise right
privileges 35 11,332 12,824 (17,167)
Equity in losses of
unconsolidated
subsidiaries (3,629) (3,941) (31,556) (13,995)
Other non-operating
expense (60) - (8,458) -
Total Non-Operating (306,692) 23,345 (334,231) 43,894
Income Before Income
Taxes 111,163 336,692 1,247,964 1,095,802
Income tax provision (49,098) (135,634) (532,478) (437,269)
Net Income $62,065 $201,058 $715,486 $658,533
Earnings per Common
Share:
Basic $0.93 $3.78 $12.18 $15.05
Diluted $0.93 $3.75 $12.13 $14.93
Weighted Average Number
of Common Shares:
Basic 66,731 53,245 58,738 43,754
Diluted 66,904 53,564 58,967 44,107
CME Group Inc. and Subsidiaries
Pro Forma Non-GAAP Consolidated Statements of Income
(in thousands, except per share amounts)
Quarter Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Revenues
Clearing and transaction
fees $573,086 $583,447 $2,581,255 $2,332,636
Quotation data fees 87,252 74,449 348,631 293,495
Processing services 129 672 1,748 2,174
Access and communication
fees 11,424 10,885 44,389 40,750
Other 19,878 17,235 75,470 71,304
Total Revenues 691,769 686,688 3,051,493 2,740,359
Expenses
Compensation and benefits 83,443 92,436 356,427 388,377
Communications 13,221 14,774 55,576 57,210
Technology support
services 12,570 19,448 65,245 75,430
Professional fees and
outside services 20,159 18,770 76,403 71,596
Amortization of purchased
intangibles 30,523 30,805 122,993 122,836
Depreciation and
amortization 34,472 34,161 139,931 142,476
Occupancy and building
operations 18,484 19,483 82,303 75,252
Licensing and other fee
agreements 25,467 18,634 96,110 83,081
Other 20,135 19,218 86,357 86,056
Total Expenses 258,474 267,729 1,081,345 1,102,314
Operating Income 433,295 418,959 1,970,148 1,638,045
Non-Operating Income and Expense
Investment income 4,105 21,224 54,312 106,857
Gains (losses) on
derivative investments (390) (158) (261) (98)
Securities lending
interest income 6,176 41,394 52,925 213,402
Securities lending
interest and other costs (971) (37,449) (45,653) (204,112)
Interest and other
borrowing costs (34,911) (38,081) (149,154) (152,324)
Equity in losses of
unconsolidated
subsidiaries (3,717) (6,705) (20,929) (24,174)
Total Non-Operating (29,708) (19,775) (108,760) (60,449)
Income Before Income Taxes 403,587 399,184 1,861,388 1,577,596
Income tax provision (164,102) (162,780) (777,760) (642,125)
Net Income $239,485 $236,404 $1,083,628 $935,471
Earnings per Diluted Common
Share $3.58 $3.58 $16.17 $13.93
Weighted Average Number of
Diluted Common Shares* 66,904 66,104 67,022 67,139
Note: All pro forma results for CME Group assume the merger with CBOT and
the acquisition of NYMEX were completed as of the beginning of the
period presented. Pro Forma Non-GAAP results exclude the
impairment charge related to BM&F. See CME Group Inc.
Reconciliation of GAAP to Pro Forma Non-GAAP Measures for detail on
all of 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 Year Ended
December 31, December 31,
2008 2007 2008 2007
GAAP Results
Revenues $691,769 $529,539 $2,561,019 $1,756,101
Expenses 273,914 216,192 978,824 704,193
Operating income 417,855 313,347 1,582,195 1,051,908
Non-operating income and
expense (306,692) 23,345 (334,231) 43,894
Income before income taxes 111,163 336,692 1,247,964 1,095,802
Income tax provision (49,098) (135,634) (532,478) (437,269)
Net Income $62,065 $201,058 $715,486 $658,533
Pro Forma Adjustments
Revenues:
CBOT pre-merger revenue $- $- $- $414,881
NYMEX pre-merger revenue - 172,581 543,949 673,607
Intercompany revenue
elimination(1) - (15,432) (45,724) (104,230)
FXMarketSpace write down - (7,751) -
Total Pro Forma Revenue Adjustment - 157,149 490,474 984,258
Expenses:
CBOT pre-merger expense - - - 219,296
NYMEX pre-merger expense - 64,461 229,242 264,422
Intercompany expense
elimination (1) - (15,432) (45,724) (104,230)
Amortization of intangibles (2) (5,001) 13,518 27,588 88,897
Depreciation adjustment from
building life change (3) - 1,476 3,923 5,904
Swapstream writeoff - - (14,315) -
Loss on sale of metals 22 - (2,758) -
FXMS writeoff - - (2,616) -
Other (4) (10,461) (12,486) (92,819) (76,168)
Total Pro Forma Expense
Adjustment (15,440) 51,537 102,521 398,121
Adjustment to operating income 15,440 105,612 387,953 586,137
Non-operating income and expense:
CBOT premerger non-operating
income - - - 13,146
NYMEX premerger non-operating
income - 2,522 32,425 (14,403)
Interest on debt acquired for
NYMEX deal - (34,310) (88,576) (146,215)
Equity investment unusual gain
or loss(5) - - (14,699) 25,962
Securities lending writedown 2,540 - 18,286 -
ERP Guarantee (6) (35) (11,332) (12,824) 17,167
BM&F Bovespa (7) 274,479 - 290,859 -
Total Pro Forma Non-Operating
Income and Expense Adjustment 276,984 (43,120) 225,471 (104,343)
Adjustment to income before
income taxes 292,424 62,492 613,424 481,794
Adjustment to income tax
provision (115,004) (27,146) (245,282) (204,856)
Adjustment to net income $177,420 $35,346 $368,142 $276,938
Pro Forma Non-GAAP Results
Revenues $691,769 $686,688 $3,051,493 $2,740,359
Expenses 258,474 267,729 1,081,345 1,102,314
Operating income 433,295 418,959 1,970,148 1,638,045
Non-operating income and
expense (29,708) (19,775) (108,760) (60,449)
Income before income taxes 403,587 399,184 1,861,388 1,577,596
Income tax provision (8) (164,102) (162,780) (777,760) (642,125)
Net Income $239,485 $236,404 $1,083,628 $935,471
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) Reverse transaction costs related to the BM&F/Bovespa investment,
including a pre-tax impairment charge of that investment in Q4 2008.
(8) Pro forma adjustments through September 30, 2008 are tax affected at
41.5%, the mid point of CME Group's estimated effective tax rate. Pro
forma adjustments in the fourth quarter 2008 related to BM&F Bovespa
are based on the tax benefit recorded. 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
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
Trading Days 64 61 64 64 64
Quarterly Average Daily Volume (ADV)
CME Group Pro Forma ADV (Legacy CME, CBOT and NYMEX combined, in
thousands)
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
Total 12,113 15,540 12,876 13,236 10,441
CME Group ADV (Legacy CME and CBOT combined for periods prior to 4Q07, in
thousands)
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
Product Line
Interest rates 6,290 8,251 6,467 6,030 3,692
Equity E-mini 2,817 3,628 2,833 3,638 3,799
Equity standard-
size 166 201 161 204 194
Foreign exchange 561 640 665 710 481
Commodities &
alternative
investments 740 949 933 822 691
Total 10,574 13,669 11,060 11,404 8,857
Venue
Open outcry 1,876 2,336 1,836 1,602 1,275
Electronic
(excluding
TRAKRS) 8,528 11,097 9,054 9,641 7,447
Privately
negotiated 169 236 170 161 136
Total 10,574 13,669 11,060 11,404 8,857
NYMEX/COMEX ADV (in thousands)
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
NYMEX floor 229 257 238 193 166
NYMEX electronic 704 814 865 831 682
COMEX floor 42 47 38 36 29
COMEX electronic 147 205 172 214 144
NYMEX ClearPort 310 473 418 492 489
Other 107 75 85 65 75
Total 1,539 1,870 1,816 1,831 1,584
Average Rate Per Contract (RPC)
CME Group Pro Forma Average RPC (Legacy CME, CBOT and NYMEX combined)
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
Total $0.753 $0.743 $0.775 $0.785 $0.858
CME Group RPC (Legacy CME and CBOT combined for entire periods reported)
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
Product Line
Interest rates $0.530 $0.505 $0.522 $0.521 $0.569
Equity E-mini 0.687 0.684 0.668 0.677 0.706
Equity standard-
size 1.427 1.506 1.453 1.486 1.582
Foreign
exchange 0.985 0.927 0.907 0.936 0.894
Commodities &
alternative
investments 1.074 1.119 1.134 1.154 1.154
Average RPC
(excluding
TRAKRS) $0.648 $0.630 $0.648 $0.659 $0.713
Venue
Open outcry $0.517 $0.553 $0.572 $0.607 $0.663
Electronic
(excluding
TRAKRS) 0.629 0.609 0.629 0.637 0.691
Privately
negotiated 3.057 2.345 2.427 2.526 2.558
NYMEX/COMEX RPC
4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008
NYMEX floor $1.470 $1.594 $1.607 $1.386 $1.600
NYMEX
electronic 1.204 1.324 1.304 1.315 1.308
COMEX floor 1.466 1.641 1.712 1.626 1.801
COMEX
electronic 1.549 1.630 1.706 1.719 1.781
NYMEX ClearPort 1.925 1.875 1.905 0.933 2.099
Other 1.809 1.923 1.854 1.928 2.038
Total Pro
Forma
Average
Gross Rate $1.471 $1.570 $1.556 $1.567 $1.671
Total Pro
Forma Average
Net Rate $1.388 $1.472 $1.479 $1.488 $1.569
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.
