CME reports record earnings

Chicago Mercantile Exchange Holdings, the parent company of the Chicago Mercantile Exchange (CME), yesterday reported record revenues and earnings for the second quarter of 2003, spurred by strong trading volumes in its three largest product categories: interest rates, equities and foreign exchange.

Net revenues increased 32% to a record $142.4 million for the second quarter of 2003, compared with $107.5 million for the year-earlier period. Net income rose 67% to a record $35.0 million, versus $21.0 million for the same period in 2002

Average daily volume increased 23% to nearly 2.7 million contracts for the second quarter of 2003 versus the same period of 2002.

In a release, CME chairman Terry Duffy said all three of its product lines saw record growth, but especially interest rates, where increasing mortgage hedging activity and activity on the back of the Federal Reserve’s quarter-point interest rate cut in June drove business.