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CME Group Reports 2Q Results

Average daily volume (ADV) grew 14% from second-quarter 2018

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CME Group Inc. has reported financial results for the second quarter of 2019.

The company reported revenue of $1.3 billion and operating income of $699 million for the second quarter of 2019. Net income was $514 million and diluted earnings per share were $1.43.

On an adjusted basis, net income was $632 millionand diluted earnings per share were $1.76. Financial results presented on an adjusted basis for the second quarter of 2019 and 2018 exclude certain items, which are detailed in the reconciliation of non-GAAP results.1

"During the second quarter, our clients turned to CME Group to manage their risks amid ongoing global trade concerns, geopolitical unease and Fed policy uncertainty, all of which drove our strong financial results," says CME Group Chairman and Chief Executive Officer Terry Duffy. "We delivered the second-highest quarterly average daily volume in our history, with 21 million contracts per day, driven in part by record trading volume outside the U.S. and strong options activity, while maintaining our focus on expense control. Likewise, open interest reached an all-time record of 153 million contracts, illustrating the ongoing need for risk management. Looking ahead, we remain focused on the successful integration of the NEX businesses, which we believe will provide additional value for both clients and shareholders."

Second-quarter 2019 average daily volume (ADV) grew 14% from second-quarter 2018. Second-quarter 2019 non-U.S. ADV was a record 5.4 million contracts, up 24% compared with second-quarter 2018.

Clearing and transaction fees revenue for second-quarter 2019 totaled $1.1 billion and the total average rate per contract was $0.693, down 3% compared with $0.713 in first-quarter 2019. This was mainly driven by higher discounts and the introduction of the Micro E-mini equity futures contracts. Market data revenue totaled $128 million for second-quarter 2019.

As of June 30, 2019, the company had $1.0 billion in cash (including $100 million deposited with Fixed Income Clearing Corporation (FICC) and included in other current assets) and $4.1 billion in debt. The company paid dividends during the second quarter of $268 million. The company has returned approximately $11.8 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.

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