Chicago Mercantile Exchange reported strong revenues and profits for the third quarter, with a 22% rise in net revenues and a 30% increase in net income, up from the same period last year.
The exchange claimed that the boosts were driven by increased trading volume in all major product lines.
Net revenues climbed 22% to $234 million, income before income taxes grew 28% to $128 million, and net income rose 30% to $77 million. Diluted earnings per share rose 29% to $2.22 from $1.72.
“We posted another solid quarter, fueled by significant volume growth in our foreign exchange, interest rate and equity products” said Terry Duffy, CME chairman. “We achieved record monthly volume in September and are seeing sizable volume growth in our equity products in October.
Revenue from clearing and transaction fees from CME products increased 19% to $176 million, up from $148 million for third-quarter 2004. Clearing and transaction services revenue rose 23% to $18 million and quotation data fees were up 26% to $19 million.
Net revenues increased 22%, expenses increased 15% to $106 million, primarily driven by technology spending related to improved functionality and capacity.
Third-quarter income before income taxes was $128 million, an increase of 28% from $100 million for the year-ago period. The company’s operating margin, defined as income before income taxes expressed as a percentage of net revenues, was 55% for the quarter, compared with 52% for the same period last year.