(Reuters) -Derivatives exchange CME Group reported a fall in third-quarter profit on Wednesday, as subdued energy volumes weighed on fees collected from clearing and settling transactions.
Energy markets cooled off after driving trading activity for several quarters. CME’s energy average daily trading volumes (ADV) dropped 10.7% to 2.3 million contracts, as steady oil prices and muted price swings dampened investor hedging activity — a key driver during periods of volatility.
The world’s largest derivatives marketplace saw its total ADV fall about 10.5% to 25.3 million contracts from a year earlier, hurt by lower activity across most asset classes.
CME’s revenue was $1.54 billion during the quarter, compared with $1.58 billion a year ago.
Clearing and transaction fees, which make up the bulk of the company’s revenue, fell 5.3% to $1.23 billion.
Profit attributable to CME shareholders was $896.6 million, or $2.49 per share, for the three months ended September 30. That compares with $901.3 million, or $2.50 per share, a year earlier.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar)
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