CME

CME Group Inc.

Next est. report 2026-10-28 · BMO

Alt & Market Data '24: Market DataBrokerages & Exchanges '26: Global Exchange OperatorsBrokerages & Exchanges '26: Options & Retail DerivativesData Owners '25: Financial Markets & Risk Info

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Overview

CME Group Inc. operates leading global marketplaces for futures and options on interest rates, equities, commodities, and foreign exchange. It provides essentia

CME Group Inc. operates leading global marketplaces for futures and options on interest rates, equities, commodities, and foreign exchange. It provides essential clearing and risk management services, alongside robust market data solutions. Serving primarily institutional clients, who comprise 94% of its volume, CME Group offers critical hedging tools and capital efficiencies. The company continues to innovate with new products like Single Stock futures and Compute Futures.

What They Do (Plain English & Analogies): CME Group operates like a giant, trusted marketplace where people and big companies go to buy and sell promises about future prices. Imagine a farmer who wants to lock in a price for their corn harvest before it's even grown, or a big bank that wants to protect itself from sudden changes in interest rates. CME provides the platform for these 'futures' and 'options' contracts on a vast array of things, including interest rates, stock market indexes, foreign currencies, oil, gold, and even farm products. They also act as a neutral referee, making sure all trades are settled correctly and safely, which reduces risk for everyone involved. Think of them as the world's central hub for managing financial risks and discovering fair prices for a huge variety of assets. Beyond just trading, they also sell the valuable information generated by all this market activity, and operate platforms for spot trading in fixed-income and foreign exchange markets.
Very Brief History: Founded in Chicago, Illinois, the company's roots trace back to the Chicago Board of Trade (CBOT) in 1848 and the Chicago Mercantile Exchange (CME), which began as the Chicago Butter and Egg Board in 1898. CME pioneered electronic futures trading with Globex in 1992. The Chicago Mercantile Exchange demutualized in 2000 and became a public company in 2002. In July 2007, the company merged with the Chicago Board of Trade to form CME Group Inc. Significant acquisitions followed, including the New York Mercantile Exchange (NYMEX) and Commodity Exchange (COMEX) in 2008, the Kansas City Board of Trade in 2012, and NEX Group (which included BrokerTec and EBS) in 2018.
"Street Stereotype": CME Group is widely perceived as 'the king of Derivatives'. Investors and analysts view it as the world's primary provider of hedging tools, especially for interest rate and commodity futures, thriving in volatile market conditions due to the increased need for risk management. It's seen as a robust market infrastructure with deep liquidity pools.
Subsidiaries On Linked In*: BrokerTec — A platform for electronic trading of fixed income products, part of CME Group.; LinkedIn: brokertec-a-cme-group-company
Customer Sectors & Example Clients: CME Group's customers span a wide range of sectors, including professional traders, financial institutions, institutional and individual investors, major corporations, manufacturers, producers, governments, and central banks. Specific examples include large asset managers (some with trillions of AUM) and mid-size firms across the U.S. and Europe. Based on their business model and industry, example clients could include major banks like JPMorgan Chase and Goldman Sachs, hedge funds such as Citadel, energy companies like ExxonMobil, and agricultural giants like Cargill. For new products like Compute Futures, they are targeting AI labs, cloud providers, and asset managers.
New Customers / Segments They'Re Targeting: CME Group is actively targeting several new customer segments and expanding its reach. They are focusing on retail traders through innovative products like 24/7 crypto futures, 24/7 one-ounce gold contracts, and Single Stock futures, which simplify directional trading with capital efficiency. They are partnering with retail brokers globally, such as NinjaTrader and Topstep, to attract a broader retail audience. With the upcoming Compute Futures market, they are targeting AI labs, cloud providers, and asset managers who need to manage risk related to the cost of computing power (e.g., NVIDIA H100 GPUs), as well as commercial end users in data centers for procurement planning, budgeting, and financing. Additionally, with Treasury Link, they aim to attract institutional risk managers seeking execution efficiencies between cash and futures in the U.S. Treasury market.
Supply Chain And Sourcing Geographies: CME Group's primary 'products' are financial contracts, market data, and clearing services, rather than physical goods. Therefore, its 'supply chain' is largely digital and intellectual. They source real-time and historical market data from their own exchanges and potentially from partners. For new products like Compute Futures, they are partnering with 'Silicon Data as the price reporting agency' for rental indices of NVIDIA H100 GPUs. They license intellectual property for indices from partners like S&P Global. Their operations rely on robust technology infrastructure, involving hardware and software from global technology providers (specific geographies for these components are not detailed but are generally global). Their workforce is primarily located in financial hubs globally, with significant presences in Chicago, New York, London, and Singapore.
Sales Geographies And Expansion Plans: CME Group manages international marketplaces and serves a global client base, with customers in approximately 150 countries. They have global distribution capabilities through trading hubs in key market centers across the Americas (e.g., Chicago, New York, São Paulo), EMEA (e.g., London, Dubai, Zurich), and Asia (e.g., Singapore, Tokyo, Hong Kong). Non-U.S. average daily volume reached 9.1 million contracts in the second quarter of 2026. London is noted as their single largest sales center, with 62% of front office sales staff located outside the U.S. While the company continuously expands its product offerings and client penetration within its established international footprint, there are no explicit mentions of expanding into entirely new geographic regions in the transcript.
How Key Themes May Help/Hurt: CME Group is strongly positioned to benefit from the 'Brokerages & Exchanges '26: Global Exchange Operators' theme, as it is considered 'the king of Derivatives' and a core global venue for futures and options. Its robust market infrastructure and deep liquidity are crucial for risk management, especially in volatile markets, aligning with the theme's focus on global exchange operators and their 'massive exchange moat'. The 'Options & Retail Derivatives' theme also presents an opportunity, as CME expands its retail offerings (e.g., 24/7 crypto and gold, Single Stock futures) to attract new participants. Furthermore, as a 'Data Owner '25: Financial Markets & Risk Info,' CME benefits from its proprietary market data across various asset classes, which is directly tied to global price discovery and risk transfer. Its market data revenue has shown consistent record growth, and increasing demand for data, potentially driven by AI, further enhances this segment.

3 Main Long-Term Bull Details

Dominant Position in Global Derivatives & Risk Management: CME Group is the world's premier destination for risk management, with 94% of its volume from institutional customers who rely on its products for essential hedging. Its extensive array of futures and options across diverse asset classes provides a critical, irreplaceable service, leading to strong and consistent demand, particularly in volatile markets.
Continuous Product Innovation & Market Expansion: CME consistently introduces new and innovative products, such as 24/7 trading for crypto and gold, Single Stock futures, Treasury Link, and pioneering Compute Futures. These innovations expand its addressable market, attract new customer segments (e.g., AI economy, retail traders), and reinforce its role as an evolving market infrastructure provider.
Strong Financial Performance & Capital Efficiencies: The company consistently delivers strong financial results, including record revenues, high operating margins, and significant capital efficiencies for its clients (over $95 billion in margin savings per day). This financial strength allows for continued investment in technology and product development, while its capital efficiency attracts and retains a broad client base.

3 Main Long-Term Bear Details

Regulatory Scrutiny & Product Approval Challenges: Recent regulatory actions, such as the CFTC staying the 24/7 crude oil contract, highlight potential hurdles for product innovation and market expansion. The ongoing litigation with the CFTC regarding the classification of perpetual futures as swaps also introduces uncertainty and potential legal costs.
Competitive Threat from Perpetual Futures & New Market Structures: While CME dismisses perpetual futures as unsuitable for its core institutional clients, the rise of these products, particularly in the crypto space, and the broader trend towards vertically integrated direct-to-customer marketplaces, could pose a long-term competitive threat, especially for retail and speculative traders, potentially fragmenting liquidity or attracting new market participants away from traditional venues.
Dependence on Market Volatility & Economic Conditions: While market volatility can drive hedging demand, a prolonged period of low volatility or a significant economic downturn could reduce trading volumes across certain asset classes, impacting CME's transaction-based revenues. The company's performance is inherently linked to the activity and risk appetite of financial market participants.

Competitors And Differentiation: CME Group faces competition from other major exchanges such as Intercontinental Exchange (ICE), Cboe Global Markets (Cboe), Deutsche Börse, Nasdaq, and New York Stock Exchange. They also compete with crypto-native platforms offering perpetual futures and other prediction markets (e.g., Kalshi). CME differentiates itself through its strong institutional focus, with 94% of its volume originating from institutional customers who rely on its products for hedging, providing price and time certainty. The company emphasizes its record levels of capital efficiencies, saving customers an average of over $95 billion in margin per day. CME is deeply committed to market integrity and preserving safety, contrasting with the heightened market risks of some competing products. Its broad product suite across all major asset classes, continuous innovation with new product launches, and essential clearinghouse services further set it apart. Additionally, CME holds exclusive rights to list futures on major indices like S&P, Dow Jones, Nasdaq, and Russell.
Recent Performance & What The Market'S Focused On: CME Group delivered strong financial results in the second quarter of 2026. Revenue exceeded $1.7 billion, up 1% from Q2 2025, marking a record for Q2 revenue and the second highest all-time quarterly revenue. Adjusted diluted earnings per share were $2.99, up 1% from Q2 2025. Average daily volume (ADV) was 29.8 million contracts, representing the third highest quarterly ADV on record. Market data revenue achieved another record quarter, up 20% to $238 million, continuing a trend of 33 consecutive quarters of year-over-year growth. The market is currently focused on: the ongoing debate and CME's strong stance against perpetual futures, including the legal battle with the CFTC over their classification; the successful introduction of 24/7 crypto futures and upcoming launches of 24/7 one-ounce gold contracts, Single Stock futures, Treasury Link, and the pioneering Compute Futures market; the continued strong performance and strategic importance of market data revenue; and the implications of CFTC actions and the broader regulatory environment for new financial products.

Revenue Segments And Estimated Mix: Clearing and Transaction Fees — Mix: ~82.4%; Source: Q2 2026 earnings call transcript and press release.; Trend: Totaled $1.4 billion in Q2 2026. Volume through H1 2026 was 10% ahead of last year; Q2 ADV 29.8 million contracts, third highest Q2 on record; average rate per contract $0.678.
Market Data Revenue — Mix: ~14.0%; Source: Q2 2026 earnings call transcript and press release.; Trend: Totaled a record $238 million in Q2 2026, up 20% year-over-year; 33 consecutive quarters of year-over-year growth.
Other Revenue (e.g., Access & Communication Fees) — Mix: ~3.6%; Source: Inferred from total revenue and other segments. Consistent with historical breakdowns.; Trend: n/m
Product Brands: CME Globex
BrokerTec
EBS
CME Clearing
CME (exchange)
CBOT (exchange)
NYMEX (exchange)
COMEX (exchange)
Crypto futures
One-ounce gold contract
Single Stock futures
Treasury Link
Compute Futures
E-mini S&P 500
E-mini NASDAQ 100
Micro E-mini
SOFR futures
CME Direct
CME ClearPort

Bull / Bear Details

CME Group, the leading derivatives exchange, demonstrates robust financial performance and strong growth across its core institutional business, driven by recor

Thesis

CME Group, the leading derivatives exchange, demonstrates robust financial performance and strong growth across its core institutional business, driven by record volumes, market data expansion, and significant capital efficiencies. Its strategic focus on innovative product launches like Single Stock and Compute Futures, alongside a firm stance against perpetual futures, positions it for continued leadership in global risk management. (Updated: 2026-07-26)

Bull case

CME Group is actively expanding its product suite with innovative offerings such as Single Stock futures, Compute Futures, and Treasury Link, designed to meet evolving client needs and accelerate growth. Single Stock futures are particularly anticipated as a major retail growth catalyst, while Compute Futures address the emerging risk management demands of the AI economy.
CME's core institutional business continues to exhibit strong performance, with Q2 2026 marking the second-highest Q2 in history for average daily volume and record capital efficiencies. Market data revenue achieved another record quarter, up 20% year-over-year, demonstrating consistent monetization of its proprietary data and reinforcing its position as a key financial data owner.
CME maintains a strong defensive moat against competitive threats like perpetual futures, which it views as unsuitable for its institutional clients and significantly more expensive. The company's disciplined approach to retail engagement, coupled with the potential for new online offerings to feed into CME's retail business, provides a sustainable growth pathway.

Bear case

The ongoing debate and potential regulatory shifts surrounding perpetual futures, particularly their classification as swaps or futures, pose a competitive risk. While CME asserts perpetuals are swaps, an unfavorable ruling or a regulatory framework that makes them more competitive could challenge CME's core derivatives franchise.
Regulatory actions, such as the CFTC's stay on CME's 24/7 crude oil contract, highlight potential hurdles for new product introductions. Such interventions, even for non-novel products, can cause delays and uncertainty, potentially impacting the timely launch and adoption of other innovative offerings like Treasury Link or Compute Futures.
The potential for CFTC approval of equity perpetuals, especially for major indices, presents a significant systemic risk. CME argues that the current design of crypto perpetuals, with their funding rates and auto-liquidation models, would be highly destabilizing for the much larger U.S. equity market, impacting global financial stability.

Bull / Bear Case

Bear Case: CME Group faces competitive and regulatory risks, particularly concerning perpetual futures. The ongoing debate and potential regulatory shifts regarding their classification as swaps or futures pose a threat; an unfavorable ruling could challenge CME's core derivatives franchise. Regulatory actions, such as the CFTC's stay on CME's 24/7 crude oil contract, highlight potential hurdles and delays for new product introductions, even for non-novel offerings. Furthermore, CME argues that the potential for CFTC approval of equity perpetuals, designed like current crypto perpetuals, presents a significant systemic risk to the much larger U.S. equity market due to inherent funding rates and auto-liquidation models. The broader trend towards vertically integrated direct-to-customer marketplaces also introduces a long-term competitive threat, potentially fragmenting liquidity and attracting participants away from traditional venues.
Bull Case: CME Group demonstrates robust financial performance, with Q2 2026 marking the second-highest Q2 in history for average daily volume and record capital efficiencies, saving customers over $95 billion in margin per day. Market data revenue achieved another record quarter, up 20% year-over-year, extending a 33-quarter growth streak and reinforcing its position as a key financial data owner. The company is actively expanding its product suite with innovative offerings such as Single Stock futures, Compute Futures (addressing the AI economy's risk management needs), and Treasury Link. Management maintains a strong defensive stance against perpetual futures, viewing them as unsuitable for its core institutional clients and significantly more expensive, while its crypto futures business continues to grow significantly. These initiatives, coupled with a disciplined approach to retail engagement, position CME for sustained growth and market leadership.
More Compelling & Why: Bull. Despite some analyst caution, CME's current EV/EBITDA of 14.37 is 20% below its 10-year median, suggesting a reasonable valuation. The strongest argument is the company's consistent organic market data revenue growth (20% YoY) and a robust pipeline of innovative products like Compute Futures and Single Stock futures, which are expected to accelerate growth. This demonstrates a strong ability to expand its market and diversify revenue. My view would flip to Bear if the CFTC rules that perpetual futures are indeed futures, significantly eroding CME's institutional moat.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Successful launch and early adoption of Single Stock futures	This new product is positioned as a significant catalyst for retail growth, aiming to attract a broader audience and provide new hedging tools for equity exposure, thereby diversifying CME's client base and revenue streams.	Monitor initial trading volumes (Average Daily Volume) and open interest for the 22 listed Single Stock futures in the weeks and months following the July 29, 2026 launch. Observe growth in the number of retail trading accounts utilizing these products.	Bullish: Strong ADV and growing open interest, indicating successful penetration into the retail and institutional hedging markets. Bearish: Low ADV and stagnant open interest, suggesting limited market acceptance or competitive challenges.	CME Group's monthly or quarterly volume reports, earnings calls (Q3 2026 expected late October/early November 2026), and press releases. Retail broker partners' announcements or trading statistics if publicly available.	Google Trends: Search volume for 'CME Single Stock futures' or specific underlying stock futures names. Financial news outlets covering new product launches and retail trading trends.	Thinknum: CME Single Stock futures contract volume/open interest data (if available). Brokerage data providers: Retail trading activity in new CME products.
Outcome of CFTC litigation on perpetual futures classification	The legal classification of perpetual futures (swaps vs. futures) has significant implications for regulation, margin requirements, and CME's exclusive rights to index derivatives. A favorable outcome for CME would reinforce its competitive moat and potentially limit competition.	The CFTC's response to CME's filing (expected by the end of August 2026), subsequent court proceedings, and any official rulings or guidance from the CFTC regarding perpetual futures.	Bullish: Court ruling or CFTC determination that perpetual futures are swaps, requiring higher margin and potentially limiting their appeal or requiring different regulatory oversight. This would validate CME's stance and protect its core business. Bearish: Ruling that perpetual futures are futures, or a regulatory framework that makes them more competitive with CME's offerings without adequate risk protections.	Public court filings, CFTC announcements, and CME Group's official statements or SEC filings (e.g., 10-Q, 10-K). Financial news outlets covering regulatory developments in derivatives markets.	CFTC website for public notices and rulings. Legal news services tracking financial regulatory cases.	Bloomberg Law: Regulatory intelligence and legal case tracking for derivatives.
Successful launch and early commercial adoption of Compute Futures	This innovative product expands CME's offerings into the high-growth artificial intelligence and data center industry, providing a novel risk management tool for GPU rental costs and potentially opening a significant new revenue stream.	Announcement of the specific launch date (planned for later in 2026), initial trading volumes, and open interest for the NVIDIA H100 GPU rental cost benchmark. Monitor partnerships with AI labs, cloud providers, and asset managers.	Bullish: Strong initial ADV and open interest, indicating a clear market need and successful price discovery for compute resources. Positive commentary from early commercial users. Bearish: Delayed launch, low ADV, or lack of significant institutional participation.	CME Group press releases, earnings calls (Q3/Q4 2026), and product announcements. Industry news on AI infrastructure and data center financing.	Industry news on AI infrastructure and data center market trends. Silicon Data's public announcements regarding the GPU rental indices.	S&P Global Market Intelligence: AI/data center industry investment and growth trends. Bloomberg Terminal: News and analysis on new commodity futures markets.
Successful launch and adoption of Treasury Link	Treasury Link aims to enhance efficiency, liquidity, and price discovery by connecting CME's U.S. Treasury futures and BrokerTec cash Treasury liquidity pools, strengthening CME's position in a critical asset class.	Specific launch date in Q4 2026. Initial trading activity and reported execution efficiencies for cash-for-future spread transactions. Client feedback on the elimination of lagging risk.	Bullish: Smooth launch, strong adoption by existing and new participants, and reported improvements in execution efficiency and liquidity in the U.S. Treasury market. Bearish: Delays in launch, low uptake, or technical issues hindering adoption.	CME Group press releases, Q4 2026 earnings call (expected late January/early February 2027), and product updates. BrokerTec trading statistics (if publicly available).	U.S. Treasury market news and analysis from financial media. Industry forums discussing fixed income trading technology.	Coalition Greenwich: Fixed income trading technology adoption surveys. IHS Markit: Treasury market liquidity and trading analytics.
Sustained organic growth in market data revenue	Market data is a high-margin, recurring revenue stream and a key differentiator for CME. Sustained organic growth indicates increasing demand for its proprietary data, reinforcing its 'financial data IP' value.	Q3 and Q4 2026 market data revenue figures, specifically the year-over-year growth rate, and management commentary on the contribution from professional subscribers, derived data, and simulation trading accounts, adjusted for any non-recurring items (Q2 2026 included $7 million in non-recurring payments).	Bullish: Market data revenue growth consistently above 15% year-over-year (excluding one-time benefits), driven by increasing professional subscribers and derived data expansion. Bearish: Significant deceleration in growth or reliance on one-time payments to meet targets.	CME Group's quarterly earnings releases and conference calls (Q3 2026 expected late October/early November 2026, Q4 2026 expected late January/early February 2027).	Public reports on financial market data industry trends. News on CME's partnerships for data distribution.	Burton-Taylor International Consulting: Financial market data industry market share and growth reports. S&P Global Market Intelligence: Data terminal subscriber growth trends.

Key Reported Metrics, Reratings Triggers & Results3 rows

ADV is a direct measure of trading activity and liquidity on CME's platforms, directly impacting transaction fee revenue and reflecting market engagement with i

Key reported metrics
Metric	Last period	Why it matters
Average Daily Volume (ADV)	-1%	ADV is a direct measure of trading activity and liquidity on CME's platforms, directly impacting transaction fee revenue and reflecting market engagement with its core futures and options products.
Total Revenue	1%	Total Revenue reflects the overall financial health and growth trajectory of CME Group, indicating its ability to generate income from its diverse marketplaces and services across interest rates, equities, and commodities.
Market Data Revenue	20%	Market Data Revenue demonstrates CME's success in monetizing its proprietary data, a high-margin business that provides a stable and consistently growing revenue stream, reinforcing its position as a data owner.

Key Questions

Will the CFTC's ruling on perpetual futures classify them as swaps, validating CME's stance and mitigating competitive threats to its core institutional busines

Will the CFTC's ruling on perpetual futures classify them as swaps, validating CME's stance and mitigating competitive threats to its core institutional business?

Question 2: Can CME Group's newly launched Single Stock futures and Compute Futures achieve significant early adoption and contribute meaningfully to volume and revenue growth in the next quarter?
Question 3: Will CME Group sustain its strong organic market data revenue growth, particularly from professional subscribers and derived data, excluding one-time benefits, to continue its diversification strategy?

Earnings Transcript SummaryTable

2026-07-22 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Defending their core institutional business against perpetual futures: Management extensively articulated why perpetual futures are not suitable for their institutional clients, emphasizing the lack of price or time certainty and heightened market risk. They highlighted CME's commitment to market integrity and customer protection. 2. Product innovation and expansion: Management frequently mentioned new product launches and initiatives, including 24/7 crypto futures, 24/7 gold contracts, Single Stock futures, Treasury Link, and Compute Futures, demonstrating a focus on evolving their offerings to meet client needs and accelerate growth. 3. Delivering capital efficiencies and maintaining deep liquidity: Terry Duffy and Lynne Fitzpatrick repeatedly referred to the record levels of capital efficiencies provided to customers (e.g., over $95 billion in margin savings per day) and the robust market infrastructure and deep liquidity pools as key differentiators and value propositions.	The call conveyed a positive and confident tone. Management emphasized strong financial results, including record volumes in several areas, and a robust product pipeline. A key takeaway was CME Group's firm stance against perpetual futures, asserting their unsuitability for institutional clients and highlighting the superior performance of their existing crypto futures. The company is actively innovating with new products like Compute Futures and Single Stock futures, demonstrating a forward-looking strategy while reinforcing its core value proposition of providing essential risk management tools and capital efficiencies in a regulated marketplace.	In Q1 2026, CME Group's total revenue was up 14% year-over-year. Clearing and transaction fees revenue climbed 15%. Market data revenue was up 15%. The cryptocurrency product suite's average daily volume (ADV) increased from 191,000 to 310,000 contracts traded year-over-year. Equity Index ADV was up 10%. Metals ADV was up 56%.	1. Perpetual futures and their competitive threat: Analysts repeatedly questioned Terry Duffy on perpetual futures, particularly regarding customer demand (institutional and retail) and the competitive landscape. Management responded that institutional clients do not want perpetuals due to their unsuitability for risk management, and that CME's crypto futures are outperforming perpetuals in terms of volume and open interest, even for retail. They also highlighted the inherent risks and costs of perpetuals. 2. Compute Futures (customer demand and differentiation): Analysts inquired about the new Compute Futures product, seeking color on customer demand and how CME's offering would be differentiated. Management explained that there's an unmet need in the AI/data center world for risk management tools, and their product will be the first daily benchmark tracking GPU rental costs, allowing for procurement planning and financing. 3. Single Stock futures (why now and distribution strategy): Analysts asked why the timing is right for Single Stock futures now, given their past failure, and how CME plans to partner for retail distribution. Management responded that market evolution, higher equity valuations, and the need for new hedging tools make the timing opportune. They emphasized financial settlement, near 24/7 access, and significant interest from retail brokers and partners for distribution.	CME Group reported total revenue was up 1% from the second quarter in 2025. Market data revenue achieved a record quarter, up 20% to $238 million. The cryptocurrency business grew 32% compared to Q2 2025. The equity complex average daily volume (ADV) was up 13% year-over-year for Q2. Copper volumes were up 4% this year.

Transcript TidbitsTable

2026-07-22

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
CME Group is expanding its eligible market by introducing 24/7 trading of crypto futures and one-ounce gold contracts, launching Single Stock futures, planning Treasury Link to connect U.S. Treasury futures and cash liquidity, and partnering to launch Compute Futures. The company is also seeing strong growth in its metals business, partly due to initiatives like Project Vault reinforcing U.S. supply chains, and its prediction markets are growing with over 140,000 accounts trading event contracts this quarter, up 13% from last quarter, and average daily volume up 40%. Retail brokers are 'extremely excited' about Single Stock futures, seeing them as a 'single biggest retail growth catalyst of the year', with over 35 retail partners targeting readiness.	CME Group views perpetual futures as 'leveraged spot products' that are 'not appropriate for the institutional risk managers' who comprise 94% of their business, and 'in no way substitutes for the institutional hedging tools'. They note that perpetuals are 'orders of magnitude more expensive' than CME's futures contracts. Despite the existence of crypto perpetuals, CME's crypto futures volume is up over sevenfold in the past three years, with CME doing $4.5B-$6.5B/day in crypto trading versus $270M for a new Bitcoin perp. CME believes perpetuals are swaps, not futures, and asserts exclusive rights to S&P index perpetuals if they were deemed futures. The company is prepared for a future with 'vertically integrated direct-to-customer marketplaces' but maintains its neutral facilitator model, noting potential 'conflicts' with integrated entities.	The market landscape is evolving with 'times of uncertainty' driving demand for risk management products. The proliferation of data centers and artificial intelligence is creating a need for new risk management tools, exemplified by Compute Futures. There's a focus on reinforcing U.S. physical supply chains and critical minerals, as seen with Project Vault. The Treasury market is in an 'evolving time' with a new Fed chair, record debt levels, and upcoming Treasury and repo clearing mandates. The consumption of market data is changing, with Gen AI tools influencing future distribution methods, requiring CME to adapt its policies and offerings.	CME Group expects its innovative new offerings, including 24/7 crypto and gold trading, Single Stock futures, Treasury Link, and Compute Futures, to 'further accelerate our growth' and drive 'continued value for both clients and shareholders'. The company plans to build on its record-breaking performance in the first half of 2026, continuing its momentum into the second half. Management's strategic vision remains consistent: running a 'world-class exchange', bringing on more products and customers, and creating 'capital efficiencies'. The company sees potential for new online offerings to 'feed right into the growth of CME's retail business' and is prepared to compete in a future with vertically integrated marketplaces.	Global	Artificial Intelligence (AI) and its impact on various industries, particularly the need for risk management tools for compute resources. The reinforcement of U.S. physical supply chains and critical minerals. The evolving consumption of financial market data influenced by generative AI tools. The emergence of vertically integrated direct-to-customer marketplaces in financial services.	The second quarter average daily volume of 29.8 million contracts represented the second highest Q2 in our history. Open interest ended the quarter up 8% over the past year and up 16% since the beginning of this year. We delivered a record level of capital efficiencies, saving our customers an average of over $95 billion in margin per day. Our crypto futures volume is up over sevenfold in the past three years. Market data revenue achieved another record quarter, up 20% to $238 million, continuing our trend of 33 consecutive quarters of year-over-year market data revenue growth. Volume through the first half was 10% ahead of last year, with open interest growing 8%. Third quarter volumes have started out strong, with July to date tracking 18% ahead of last year. Our retail brokers globally are extremely excited about this new product innovation. We are the number one exchange for battery metals globally. We're seeing record open interest in our steel complex right now. We are up over 4 million a day. That was up about 40% versus what we saw in Q1.	This strong business performance has been overshadowed by discussions surrounding perpetual futures. Perpetual futures are highly engineered instruments that rely on frequent funding rate adjustments... They offer limited investor protections and introduce heightened market risk, particularly for retail participants. These products do not appeal to our core customers. The total cost to trade perpetual futures is typically orders of magnitude more expensive than our highly efficient futures contracts. The CFTC stayed your 24/7 crude oil contract the day before launch. I was a little surprised by that, but I guess I shouldn't be because there's certain other contracts that take priority when you're in the hot dog business. The systemic risk of an equity perp, if you were to try to list an equity perp, the way they are designed today and listed today in crypto, I think it could be a systemic issue for the marketplace. A lot of these prediction markets on sports are gambling, and I think that that is going to find its way to the Supreme Court, and that is not something that we want to be a part of participating in right now.

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