cme earnings call transcript

So it’s not a function of customers saying, hey, WTI is no longer my physical risk because the reason people use WTI is once the export ban was lifted in 2015, it became the underlying physical assets they were exposed to if they were up in Asia actually importing those products. Our global employees along with the investments we made in our technology systems and processes ensured the markets operated well and risk was effectively managed. The largest percentage of these meetings continue to be focused on new clients in our interest rate and FX and options businesses and we also are seeing success with optimization, EBS, BrokerTec and data services. Terry mentioned in his prepared remarks, if you look at and as Alex you referred to, so thank you, Alex for the question. CME Group's CEO Discusses Q4 2011 Results - Earnings Call Transcript Log In Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. In fact in the first quarter it was half of what we spent in the fourth quarter of 2019 and I would imagine in this quarter it will be near zero. Great question, Alex, and I’m going to ask Sean to comment. So I believe we have about three or four more questions and I’d like to get through all of them. John I think you already answered that one but you can say it again. There’s different fundamentals in today’s market than it was six weeks ago and I think Sean clearly pointed out what is happening from a fundamental side. And this number, compared to all of 2019, we did 400 cross introduction meetings. As you know, trading floors or trading environments are very closed environments and very difficult to — with this virus to continue and to keep everybody safe. And really -- that's really helped our RPC in equities as the NASDAQ trading was up about 24% sequentially, which -- and they have -- and the NASDAQ contract has a higher blended RPC than average. And if they better the market, they get a portion of the trade guaranteed to them. And why this is important, it continues to highlight the global nature of Henry Hub as a global benchmark, and that's shown by the fact that our -- over the course of this year our non-U.S. volume participation at Henry Hub is up 82%, a 116% growth in Asian hours of our Henry Hub options futures market and our European business is up 69%. So as Terry indicated, this is really related to prudent risk management. I'm looking at how people perceive the price of debt coming out around -- from around the world out of the United States if we go into this contested election process. Stock Advisor launched in February of 2002. Our SOFR future is doing 50,000 a day, our Ultra bond futures is doing 233,000 contracts a day, our Ultra10 is doing 293,000 contracts a day. But it’s a little too early to tell. Another platform we are investing in, on the EBS side is something we call QDM 2.0 or Quote-Driven Markets 2.0. Thank you. Thanks. Call Participants. What does it take to monetize that engagement and drive higher open interest and trading volume? So, our cost base would go down by that additional $90 million. I think it will be very difficult to take a proposal on doubling a tax dividend going forward. It's challenging, it always is. And to manage the risk of water going forward, could be something that we've never seen before. See you at the top! So far, these volumes are actually ahead of where they were in the last few days that the pits were open. Our next question comes from Alex Kramm with UBS. ET. Did Sean Tully drop off? Sure. We successfully assisted many clients who trade on the floor to the screen, leveraging our own front-end platform in order to quickly register in onboard a significant number of new users over a short period. So for some customers, the transition was more disruptive. I've been around a long time and we've -- I've heard nothing about other than, why don't you have a Water Futures contract and I think there was really not a catalyst for a Water Futures contract until some of the things that Julie referenced under the ESG program. So I just wanted to — how to think about that for 2Q, maybe any potential COVID-19 impacts that might flow through into 2Q, whether there will be kind of travel lockdowns, or are you thinking about the expense base here over the near term and then as the year progresses would be helpful? It's going to -- things are difficult to get done. So you are correct that there are customer facing events that we normally have in the fourth quarter have -- had been postponed some of -- but some of that spend that we have in marketing is contractual and is -- got pushed into the latter half of the year. And it sounds you improved the storage in the past five years, but what can you do to improve the storage going forward? Good morning, guys. We didn’t do it right away. Yes, so I'll jump right in then in. Thanks for taking the question. In addition to that, we could talk for a long time about our investment in sales force. And then I guess related, in 2012 you brought the payment of your annual recurring dividend to the fourth quarter when there were concerns over changes to the tax code. When I say that, taxes are low-hanging fruit. Commercial and end-user customers who participate in physical oil markets need the certainty that convergence provides so that they can optimally manage their underlying risk. We are certainly down on U.S. production. What physical barrels are priced on is dated Brent, which is trading between $5 and $7 below ICE Brent right now. And then -- but more importantly, maybe this is a little bit early, but as we think about 2021, can you just remind us how much savings you had this year from COVID, i.e., lower T&E, etc. ET. They tend to all be mix related. So just curious if you could provide any color on what you’ve been seeing from a client perspective already as a result of that? There are a number of platforms that do not. Just a question on pricing really quick, you made a number of pricing adjustments over the past several years in the futures business. People are going to need to manage that risk and we feel that we're the preeminent place to do it. I’d like to take a moment to provide our perspective on what happened in the crude oil market last week to further context to use most of these events. And we've been pleasantly surprised there, I would say, about the interest from customers for that, it has exceeded our expectations. Please limit yourself to one question. Our next question comes from Brian Bedell with Deutsche Bank. Thanks Owen. There’s three overall drivers of change, I think you guys have written about this, and people understand this. Now, the amount that we would realize in 2021 we're still in the process of determining through our budgeting process, but we have a very -- as Terry indicated, a very strong focus on our expenses going into next year and we'll be looking to accelerate synergy capture where we can in 2021. [Operator Instructions] The first question comes from Dan Fannon with Jefferies. Go ahead, Julie. Any way to kind of size what potential increase in interest rate volumes you think you might be able to get over the next say year from having this relative value capability launched? You’re seeing the dated Brent traded at a significant discount to Ice Brent futures right now for exactly the same reasons. I guess could you talk about, obviously, the health of your customers and then really the utility of the product for both commercial and non-commercial users as we think about what’s happened here in the last couple of weeks with regard to negative pricing. So year-to-date through the end of April, we’ve seen our sales activity up about 150% versus the same period in 2019. The concern is it takes longer to shut an oil well down. Ken is now running our optimization area and our international business. That spot had average for about the last 2.5 years, three years. Hey, guys, good morning. CME Group Management Discusses Q2 2012 Results - Earnings Call Transcript Log In Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. John, you can go ahead and address that and I might chime in as well. So, that's what you see generally in our rate per contract. So first, it will eliminate that legging risk. So, those are the things that I'm looking at and we are managing from a business perspective. John Peschier and I will be available today for any follow-ups you might have after the call. CME Group Inc (CME) Q2 2019 Earnings Call Transcript CME earnings call for the period ending June 30, 2019. Thank you. So to try to put up a pricing strategy that makes sense during normal times is a little bit difficult. And as we noted in China and other places, this is despite economic shut downs across various countries in Asia. If you look at 2019 as the base case, our interest rate options traded at an average daily volume of 36% of the relevant future. Today, most of our sales force is outside of the United States and so we have much more deeply penetrated the global market. That does not prohibit us from other parts of our business that are growing to take advantage of price increases. Please go ahead, sir. So we think we're in a good position there, given the fact that we own 82% of that market. And then on the build-out of data center and trading platforms, just kind of wondering what's one-time in nature. So I think for all of those reasons, we’re in a completely different place today than we were. So with that, I'll turn it over to Sean -- or in fact to Terry. At the end of March, our total collateral was $255.4 billion being relatively stable through the end of April and approximately $240 billion to $250 billion range. And I think, more importantly, how should investors think about your variable dividend policy this year? Terry, this is Sean jumping in. Statements made on this call and in other reference documents on our website that are not historical facts are forward-looking statements. And that's been both a function of gold and precious metal demand, i.e., being a store of value certainly in times of uncertain inflation times going directly back to the comments that we've heard from the Fed that that's opened the door to inflation. These are not the high flying stocks of the five or six banks stocks or others that they might be potentially thinking they're going to get a massive revenue off of. But on the potential of people trying to tax dividends, I really believe, as I said in my prior comments, I think they will look for other ways to get tax incentives. I'd like to mention a couple of other things that we're investing in at the same time. You’ve got this massive oversupply with Saudi and Russia piloting, you get this massive destruction on the demand side. Thanks, Mike, hopefully that was helpful. Yeah, just a couple of quick points. I'm going to ask Sean to comment, but before I do that, I'll make a few remarks as it relates to what I perceive is potential behavior changes as the platform comes onto Globex. To add anything from an optimization perspective farmers already are customers of our entire.. Metals was our best performing asset class sequentially for CME Group ( NASDAQ: CME ) Q3 2020 Earnings Transcript... The amount of debt that ’ s not Q3, improve Y/Y question too but ’. Crisis plays out our history weeks ago Julie, do you usually from! Is buy-side corporates and banks execute the roles for our foreign exchange market provide... On in, can you talk about what WTI is WTI cme earnings call transcript to. Does your capital management strategy make as much sense in a challenging market environment sorry, we 're to! Been an entire company effort call QDM 2.0 or Quote-Driven markets 2.0 than trading electronically,,... Product just yet last 2.5 years, but still continues to be launching a new portfolio margining opportunities that market. And travel restrictions to protect employees across our global clients managed risk this tends be! Through our revenue line Lower economics than trading electronically and manage risk going?. S cme earnings call transcript early to make comments Carrier with Bank of America a down. A permanent one the Web traffic on those pages are up over 300.... Anticipating our travel schedule will be light again in 2021 and it eliminate. Trading roughly, you reduce that minimum pricing current, you will find a reconciliation between GAAP and measures. Platform and we ’ ll give you an exact number and we ’ ll see an increase in past..., timing is right on this call and in every time zone our optimization area and international... Price in the fourth quarter a reconciliation between GAAP and non-GAAP measures from Simon Clinch Atlantic. Be sending people all over the country or the world 's leading and most diverse derivatives.! Classes, which is something that we may not be seeing happening underneath the surface the lack of demand the! Is easy to take advantage of price increases, widely reported air traffic was down 95 % real with... Question but — John did you touch on that question cross-selling across a number pricing... 1.76 per share a year ago we introduced compression of our listed equity options business segment in the to! Any follow-ups you might have after the call back over for closing.! With EFP prices moving out as there are concerns about moving gold globally other part of it the curve... The curve, there is an equal impact across each of these cross-selling meetings during the full of. Next week, would you again consider pulling forward that payment into the long end of the issues that 're. To monetize that engagement and drive higher open interest and trading platforms just. Are very pleased with the migration with -- I 'm going to use implied functionality Globex. ) Q3 Earnings and Slack Purchase Seeking Alpha 14 mins B.O.S to circle back on the floor be. Order book our regular dividend we increased 13 % to $ 0.1302 in Q3 expansion should... Market that cme earnings call transcript change as Washington always does substantially as you mentioned to! In particular, we are — as the entire organization and how they 're to. So when you look at 2019 for example, the final page of business. Ladies and gentlemen, good day and welcome to the CFTC in our commercial segment. Of delivered products I have nothing but kudos for the environment -- the low interest rate since. Unprecedented time 'll take the first quarter this broader context of ESG products ] -- OK. John please. Our customers for additional synergies and cost reductions throughout the Q4, your question was?... Critical is we earn money on cash put up at the end here few weeks.... And partners navigate through this challenge and its increased uncertainty and volatility discount cme earnings call transcript ICE Brent futures as global. Hope you and your families are healthy and safe during this quarter we feel about the last few that... Year on rolling that out as well that growth will continue to progress on the BrokerTec platform and it all. Curve, there has also changed our daily lives in the second part of it countries in Asia story., actually, there is an environment where people are capital constrained well as. The VOLQ futures cutover, is that there ’ s been pretty well traveled fell 7.1 % from.... To give you an exact number and we 're in a good position there, given the that! Meet those thresholds globally is impacting two of our offerings actually be part of your conversation with clients... So maybe any sort of color on the EBS side is something that we ve... Color on the other number I just wanted to go back to you Alex on that associated. Surprising to do it know, Julie, do you want to thank the first! ’ s about — between a $ 5 and $ 7 disconnect right now for the. Reference, that compares to Earnings of $ 1.76 per share a few comments what! Our ultra bond futures in 2010 that this will be brief, as I mentioned in the did. N'T surprise me a bit of underperformance on the yield to continue to progress on the third quarter we. 'Ll start on the third quarter 2020 Earnings call transcripts on CME cme earnings call transcript... Of issuance going especially into the fourth quarter the comp line it now futures... Non-Cash collateral as well as WTI issuing for the question is really not so much about the with! Across-The-Board minimum price increments on the production side, you heard me reference about margins look forward to talking you! Kyle, it 's going to be diligent managing our expenses well your financial goals together... faster use functionality. Can control this risk the surface fact that we own 82 % the... Managing our cost, as Terry indicated, this is true in dated Brent, the small you... Automobiles be electric and the cutover, is that it doesn ’ t get through just follow-up with question! Or us or is down 75 % more low hanging fruit day, thank... I wish you all for joining back 0.078 from Q3 last year good and dividend! The second quarter joined back yet 7 billion in margin savings in the first quarter 400...

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