Sector: Financials | Focus: Financial Exchanges & Data
HQ: Chicago, Illinois
Financial Risks
CME Group faces risks from increased competition, technological advancements, regulatory changes, fluctuating commodity, equity, and fixed income prices, and economic conditions. Potential losses from legal proceedings, including a pending class action, are uncertain. Credit risk from clearing members and third-party providers is also a concern. Changes in trading volume and average rate per contract can impact revenue. The company's reliance on dividends from subsidiaries for shareholder payouts is a risk.
Financial Upside
CME Group's revenue increased 18% in Q3 2024 compared to Q3 2023. Contract volume rose 12% in the first nine months of 2024. Investment income and equity in net earnings of unconsolidated subsidiaries contributed positively. Higher market data and information services revenue, and custody fees, are also positive factors. The company has substantial borrowing capacity.
