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CME Group: Energy Volumes Rose on Q1 Global Oversupply, Volatility

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Energy trades

CME Group (CME) reported a 20% rise in its energy volumes for 1Q15 compared to the first quarter of the previous year. It was mainly helped by a 60% rise in both WTI futures and WTI options. WTI futures and options have averaged 1.1 million contracts per day.

Energy volume led the way in terms of product line growth from Asia. Trade volumes rose by 40% in 1Q15. The trends reflect that Asian clients are comfortable trading and clearing directly with a US-based exchange.

CME continues to successfully grow its energy options volumes on Globex, with 41% of its total energy options trading on Globex in 1Q15, up from just 28% in Q1 of last year. The company saw an approximate 2% shift from equity to energy products in the 1Q15.

CME Globex provides global connectivity to an array of futures and options across all asset classes. Its technology facilitates all electronic trading, providing users across the globe with virtually 24-hour access to global markets.

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Global oversupply, Brent

There’s a global oversupply of oil (USO). CME has benefitted from higher volumes in WTI but has seen slower growth in Brent. CME delivered energy complex growth of 23% versus ICE (ICE), which saw growth of 9%. CME is also seeing outperformance of its options business. Its WTI options have increased both in volumes and operating income.

CME generated net income of $1.12 billion over the last 12 months compared to its peers:

  • NASDAQ OMX Group (NDAQ): $0.41 billion
  • ICE (ICE): $1 billion
  • CBOE Holdings (CBOE): $0.19 billion

Together, these companies form 1.91% of the Financial Select Sector SPDR Fund (XLF) and 0.35% of the SPDR S&P 500 ETF (SPY).

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