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- Strong growth across major product lines compared with July 2006; foreign exchange volume up 68 percent, E-mini equity index volume up 47 percent and interest rate volume up 39 percent
- Record July NYMEX energy and metals volumes on CME Globex
- Impressive start to third quarter, with second highest monthly average daily volume in E-mini equity index products, and highest non-roll month in foreign exchange
CME Group, the world's largest and most diverse exchange, today announced July volume averaged 11.2 million contracts per day, up 40 percent from July 2006, assuming CME and Chicago Board of Trade volumes were combined for the full month. On this basis, total monthly volume exceeded 235 million contracts. Electronic volume represented 79 percent of total exchange volume. Total options volume averaged 2.0 million contracts per day, up 16 percent from July 2006. Electronic options volume averaged 348,000 contracts per day, up 69 percent from the same period a year ago, representing 19 percent of total CME Group options volume.
CME Group total interest rate product volume averaged 7.0 million contracts in July, up 39 percent from July 2006.
% Change vs.
July 2007 ADV July 2006
Eurodollar futures 2,538K 38%
10-year U.S. Treasury Note futures 1,541K 85%
5-year U.S. Treasury Note futures 619K 53%
30-year Bond futures 450K 54%
2-year U.S. Treasury Note futures 228K 81%
Eurodollar options 1,161K 7%
Treasury and Bond options 451K 18%
During July, 9 percent of Eurodollar options and 27 percent of Treasury and Bond options were traded electronically, and a combined 14 percent of the interest rate options traded electronically.
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.
CME Group E-mini equity index product volume averaged 2.6 million contracts per day in July, up 47 percent compared with July 2006. Total equity options volume averaged 205,000 contracts per day, a 62 percent increase from the same period a year ago. Total E-mini index options volume averaged a record 114,000 contracts per day, more than doubling from July 2006.
CME Group foreign exchange product volume averaged 628,000 contracts per day in July, up 68 percent compared with the year-ago period, reaching the highest non-roll month average daily volume ever. Electronic foreign exchange volume averaged 585,000 contracts per day, up 75 percent compared with July 2006. July foreign exchange futures and options volume represented a notional value of $77 billion.
CME Group commodities and alternative investment products volume averaged 764,000 contracts per day in July, up 18 percent compared with the same period a year ago. Corn futures volume averaged 192,000 contracts per day, up 3 percent from July 2006. Soybean futures averaged 130,000 contracts per day, up 45 percent, and Wheat futures averaged 72,000 contracts per day, up 35 percent. CME Group electronic commodities and alternative investments volume was 49 percent of total CME Group commodities and alternative investments volume in July.
NYMEX energy and metals volume on the CME Globex platform in July averaged a record 750,000 contracts per day, increasing more than 7 times the average daily volume for the same period a year ago.
CME GROUP MONTHLY AVERAGE DAILY VOLUME
(In thousands, average daily volume combined for entire month)
July 2007 July 2006 Percent Change
PRODUCT LINE
Interest Rates 7,049 5,058 39%
E-Minis 2,630 1,784 47%
Equity Standard 163 141 16%
Foreign Exchange 628 373 68%
Commodities and Alt. Inv. 764 646 18%
Total 11,234 8,001 40%
VENUE
Open Outcry 2,118 2,257 -6%
CME Globex and e-CBOT 8,919 5,641 58%
Privately Negotiated 197 103 91%
CME GROUP ROLLING THREE-MONTH AVERAGES (excluding trakrs)
Average Rate Per Contract (In Dollars)
By Product Line By Venue
Commod-
3-Month Inter- Equity Foreign ities Privately
Period est Stan- Ex- and Alt. Open Elec- Nego-
Ending Rates E-Minis dard change Inv. Total Outcry tronic tiated
Jun-07 0.516 0.700 1.334 1.090 1.034 0.639 0.492 0.626 2.948
May-07 0.515 0.715 1.364 1.080 0.994 0.639 0.492 0.631 3.018
Apr-07 0.524 0.716 1.367 1.118 0.993 0.650 0.509 0.637 3.144
Mar-07 0.519 0.712 1.387 1.106 0.952 0.640 0.498 0.630 3.130
Average Daily Volume (In Thousands)
By Product Line By Venue
Commod-
3-Month Inter- Equity Foreign ities Privately
Period est Stan- Ex- and Alt. Open Elec- Nego-
Ending Rates E-Minis dard change Inv. Total Outcry tronic tiated
Jul-07 7,386 2,482 185 591 790 11,434 2,391 8,835 208
Jun-07 6,670 2,127 180 527 818 10,322 2,297 7,838 188
May-07 6,444 2,055 200 525 744 9,967 2,200 7,607 159
Apr-07 6,440 2,049 204 535 815 10,044 2,195 7,686 162
Methodology for Reporting Third-Quarter Results
CME Group was formed on July 12, 2007, at the completion of the merger of CME and Chicago Board of Trade. For the purpose of quarterly reporting, volume will be calculated from that date onward in the following manner. CME standalone volume through July 12, 2007, plus the combined volumes of CME and CBOT for the remainder of the month, averaged 9.8 million contracts per day, up 41 percent from July 2006 using the same methodology.
This methodology also will be the basis for calculating transaction fee revenue for the third quarter. Following is a breakdown of this comparison by product line.
CME GROUP MONTHLY AVERAGE DAILY VOLUME
(In thousands, average daily volume totals reflect CME standalone volume
for the first eight trading days and combined volume for the remainder of
the month)
July 2007 July 2006 Percent Change
PRODUCT LINE
Interest Rates 5,924 4,298 38%
E-Minis 2,584 1,743 48%
Equity Standard 161 139 17%
Foreign Exchange 628 373 68%
Commodities and Alt. Inv. 502 412 22%
Total 9,799 6,965 41%
CME Group (http://www.cmegroup.com/) is the world's largest and most diverse exchange. Formed by the 2007 merger of the Chicago Mercantile Exchange Holdings and CBOT Holdings, 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 its trading floors. 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, agricultural commodities and alternative investment products such as weather and real estate. CME Group's Class A common stock is traded on the New York Stock Exchange and the Nasdaq Global Select Market 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. 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 news 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 successfully integrate the businesses of CME Holdings and CBOT Holdings, including the fact that such integration may be more difficult, time consuming or costly than expected; revenues following the merger may be lower than expected; increasing competition by foreign and domestic competitors, including new entrants into our markets; 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 continue to realize the benefits of our transaction processing services provided to third parties; 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; 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 the growth of electronic trading and the redundancies in the market data offerings of Chicago Mercantile Exchange Inc. and Board of Trade of the City of Chicago, Inc.; changes in the 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 tiered pricing; the ability of our financial safeguards package to adequately protect us from the credit risk of clearing firms; changes in price levels and volatility in the derivatives markets and in underlying fixed income, equity, foreign exchange and commodities markets; economic, political and market conditions; our ability to accommodate increases in trading volume 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; industry and customer consolidation; decreases in trading and clearing activity; the imposition of a transaction tax on futures and options on futures transactions; and seasonality of the derivatives business. 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 Quarterly Report on Form 10-Q, which is 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.
