The CME Group, a top derivatives marketplace, released its first quarter 2023 financial results on Wednesday, reporting $1.4 billion in revenue for the period. The amount is the Group’s second-highest quarterly revenue, according to Terry Duffy, the Chairman and Chief Executive Officer.

CME's Revenue Grows in Q1

The revenue represents growth of 17% from the $1.2 billion the derivatives business generated during the last quarter of 2022. Also, the Group reported total revenue of $5 billion last year.

Duffy attributed the new quarterly revenue performance to “flight to futures” among global market participants who sought to manage risks across asset classes during the period. Additionally, the development resulted in the Group’s highest adjusted net income and highest adjusted earnings per share (EPS) ever, Duffy said.

This is even as the CME Group reported an operating income of $914 million and a net income of $884 million during the first three months of 2023. In addition, the derivatives marketplace operator’s diluted EPS came in at $2.43 during the first quarter.

CME Breaks Records in Q1

As a derivatives marketplace, the CME Group operates Globex, a platform for trading futures and options on futures; BrokerTec, a marketplace for fixed-income trading; and EBS, a portal for foreign exchange trading. In addition, the Group runs CME Clearing, a central counterparty clearing service.

During the first quarter of 2023, the Group’s total daily volume exceeded '25 million contracts 28 times'. Moreover, the Chicago-based marketplace reported an average daily volume (ADV) of 26.9 million contracts during the period.

In particular, the CME Group noted that its ADV in non-United States marketplaces touched down at 7.2 million contracts, accounting for the second-highest quarterly ADV across Europe, Middle East and Africa (EMEA), Asia and Latin America. Finance Magnates reported earlier that the Group saw its second-highest March and quarterly ADV in March 2023 as the average daily volume grew 24% to 30.3 million contracts.

Furthermore, the CME Group in its latest financial result reported a new single-day volume record of 66.3 million contracts on March 13. Again, the derivatives marketplace operator’s single-day volume of forex futures and options contracts earlier peaked at 3.15 million contracts on March 8, 2023.

“Of particular note was our double-digit growth in options and interest rate products, including the growth in our SOFR derivatives complex, driven by ongoing Fed policy changes and regional bank stress,” Duffy explained, adding that the company expects "risk management will continue to be more important than ever."

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