CME (CME) 28 Jul 212021 Q2 Earnings call transcript

Company Profile

Participants

John Peschier	Investor Relations
Terry Duffy	Chairman and Chief Executive Officer
John Pietrowicz	Chief Financial Officer
Derek Sammann	Senior Managing Director-Commodity and Options Products
Sean Tully	Senior Managing Director-Financial and OTC Products
Julie Winkler	Chief Commercial Officer
Rich Repetto	Piper Sandler
Alex Kramm	UBS
Dan Fannon	Jefferies
Ken Worthington	JPMorgan
Sheriq Sumar	Goldman Sachs
Owen Lau	Oppenheimer
Michael Cyprys	Morgan Stanley
Simon Clinch	Atlantic Equities
Kyle Voigt	KBW

Call transcript

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Operator

Good day and welcome to the CME Group Second Quarter 2021 Earnings Call. At this time, I would like to turn the conference over to John Peschier. Sir, please go ahead.

John Peschier

Good morning. And thank you all for joining us today. with to Harbor brief Terry by questions. start turn and remarks to your over it and going the language, Safe I'll followed I'm John for the management also Other team of our participate members in Q&A Session. will made documents our reference facts forward-looking website in historical on statements. not this and are Statements on are other call that These not of performance. future guarantees are statements They to predict. involve risks, uncertainties and assumptions that are difficult expressed may or and actual results differ materially what outcomes in implied is any statement. Therefore, from can factors be the about Detailed that filings on our performance in may with found information SEC, our affect the website. are which

Lastly, you over would call on and like reconciliation the non-GAAP final see GAAP the turn to page of Terry. the earnings between I to will release, measures. that, With a

Terry Duffy

Thanks John. thank this all And you for joining morning. us

have. in We agricultural relative you be our million those we energy and and to with volatility per Derek; We brief, John compared Also, the on addressing this morning, last down your questions. has summary XX and less executive will the XXXX. I volume year. saw more can solid provided this and in Sean; year, here comments markets direct second have questions we any our as look second quarter the averaged we Sunil; day, Equities extensive year. contracts our to than released during rates strength so forward as Julie of delivered we QX businesses prior volume were us to said, morning, Winkler said, this which with details of John quarter As John;

particular to year strength compared compared XX% more to with a July, in year, than So we has far in up last doubled month-to-date are rates, ago. which July

than is rebound seen have month-to-date. in a We up which more energy, XX%

a futures, product begin successful we products, August had the and Bitcoin trading nature-based launch offset futures in successful history sulfur of Micro WTI, the and total we terms or On most launch commodity CME In was global in which will emissions QX. our had copper a We contracts. options highly Group. of daily options ADV volume, average record of in X

Europe. new Latin up be in America our increased in Micro saw contracts the second August. was FX, million product users X%. main properties addition, with finding In yield as assist all our results. and global for world's regions in also X% metals. contracts most X% metals growth offerings new quarter We available all financial that non-U.S. supported In point me rates, X.X discuss Asia-Pacific, asset with in saw in X% regions. trading clients short came the our all This some FX call would treasury in ADV Across the classes. ag of from how we ags, growth was and digital are products, interacted introduction across activity, is The digit our the from over the to and critical let constantly the who John, diverse With turn growth clients double to ways will

John Pietrowicz

Terry. Thanks

billion. Expenses contracts. out were volume excluding dividends quarter, million million were in with had an adjusted fees. the in Capital resulted quarter at basis very quarter quarter almost an were of effective million. during than revenue CME approximately million license than $X.X tax the for $XX billion EPS the at During of approximately CME the rate adjusted more XX.X%, the which managed quarter and million more second $X.XX. second cash $XXX paid an average generated diluted of expenditures the was $XXX daily of on and carefully and end adjusted $X.X for CME XX $XXX

last prior for fees guidance $X,XXX billion. million approximately XXXX, with adjusted That $XX expect now to Turning come to our operating flat is we at total to expenses in below license expense adjusted excluding and and remains adjusted virtually be XX.X% $XXX tax All We And million. in $XXX rate XX.X%. of levels. between our guidance million effective CapEx unchanged. the project other be range to and year's guidance,

free details. yourself a call of our back the run good rate of and the please targeted for very sight line into With to in Finally, questions up and queue. year refer Thank to highlights cumulative last achieve to of million like then we the to our you. the are one $XXX us your on number that question short synergies limit Please covering open summary, we'd financial track end. analysts page for additional executive and on commentary based feel have to by jump

Operator

you. Thank [Operator Thank Instructions] you, sir.

first will with Repetto Our from come question Rich Piper Sandler.

Rich Repetto

John you of Terry, question the but it. is, or institutions the expense this? sort team. And to investment market Is retail a guess are the products, the about but other of pretty of is is as price retail, expanding impressive the really size build-out towards of product anyway, And building well? and on oriented going you or which towards one definitely half the future, only going there the any question it are be around Micro But fiftieth, Terry? going Yes, good think, how if be new the results, broader using it are more is products. this to I Bitcoin is of my morning, – Micro-E-mini and to I it's regular it's

Terry Duffy

to Micro as concerns address in, the of us in some the reasons market start sense and But at little have these do when the the of contracts, E-mini about it many down look component Micro because was we can know, equity to certain the those – valuation to Micro. and Micro Micro times, this some of now list whether contracts, say There's we will the it I'm some equities, ahead of of contracts in sure for people want something to made receive Rich, general, equity you smaller go the everybody of the underlying participants. for fundamental products. because will to we this room list I of it Well,

for we the for then a products was demand at look And with that other associated that. it. driving So force

given crypto, of contract, upwards XX,XXX make to the audience, with address you at can say Bitcoin, made to the the smaller in sure their going same manage to risk. appreciation mitigate one point, a On sense they could it have almost and story the

a just market side Texas On listed, think, was that commercial that contract. contract the side a in participate demand that want and both West bit the was I on financial to participants, just different and a the just of smaller from who

that at it comes. of clients the continually going decision the that in invest sector So, business? make are that the as there's a question will look needs to is, we We more of and

and don't it I wouldn't So, want to say either. yes, prejudge out but rule to want it I

So, in. colleagues go I'll would. ahead Pietrowicz let and some jump Mr. of my Maybe

John Pietrowicz

at resonate products point meeting we've terms look we’ve one few these to our really Yes. in Thank Terry. you, where is done found of a clients’ position Terry's things, market When really Micro a in you needs. the

also I of things quarter. mentioned is the the last One adjusted we've the we've micros, done as pricing on

about take Bitcoin full launch pricing to the So, a contract in of $X.XX from Micro products, an successful our look the when Micro contract about to equity adjustment, $X.XXX, which impact increase saw we the reflects $X.XXX RPC plus a the up $X.XX. XX%, quarter at the has you a an to that highly rate per

So, a huge success there.

Micro a What's our first went an couple $X.XXX exciting from also increase. quarter business we years million look saw quarter ago exist a at is or second We RPC, to of in a built $X.XXX with Gold have far that XX% we versus increase which product. didn't the a when very year $XXX Micro so just

allows So, it's pretty addressing and exciting wide to products. products a of in a which of client need variety terms us the having micro offer really

Terry Duffy

and Maybe remarks, as the was referenced second, on the the West I'd my successful launch of itself. which impressive earlier is ever Derek for just like touch had Texas to Intermediate have product, in most commodity newest because here, we've I one contract in

give Derek, sentences West as you couple could in seeing just it relates So, you're what contract in the to maybe new Texas. a

Derek Sammann

good about is client just days. size XX Yes, said, big. new bringing there actually that Group over in contract X,XXX tool the traded as most in contracts Terry that this would start. too XXX,XXX product to This a is our with gotten like have the micro is to acquisition that us. our we've a this interesting customers first institutional We for other trading What's never traded little CME in participate before. a in over participants markets the stat bit key contracts got crude we've And found and off any

seeing is the brand-new from functionally XX liquidity this a higher unique in asset to practically single firms. micro U.S. they have XX% participants. liquidity of of unique is from trading the has about We're for grown. XX% there class. our percent About average in users participation the the coming Open versus U.S. in outside non-U.S. interest us So, the and global X,XXX business trading this outside day, We're business participation day, steady across main individual XX trading been contract every seeing get and trading contract. providers and

global what this globally. mean what about provision and business means this participation, could the broad client excited liquidity new participation, really So we're acquisition, strong so net and start for for

Terry Duffy

as is So Rich, of strategy component part is relates acquisition, the but yes, as it our it last relates only retail, just to of to question, this strategy to it our finish up client part not new of your your on retail.

of component contracts only micro that, a the are the So, not piece. but

asked. as color the to it some you you gave that hopefully that relates questions So

Rich Repetto

Terry. Thanks, helpful. Very

Terry Duffy

Rich. Thanks

Operator

Thank you.

question next Kramm Alex comes with from Our UBS.

Alex Kramm

Yes, integration like for if morning, new has on opportunities update particularly curious been in tangible you've I'm BrokerTec hey, you few What revenue any months can so evidence it's on is I'm us and an the driving that what a this the now everyone. you. far. been good some give seen interested

year-over-year a futures interest revenues were flat, lot. and rates, obviously BrokerTec think revenues up basically I

being to that or it you've Thank question So, to too is anything? for anything clients, is early point is, by that you. driven done

Sean Tully

greatly Yes, question. I it's appreciate Sean speaking. a it. This really good is

have on that are the we well that yes, new in markets initial we across talked investing and uptake very of picture, and there treasury are So, there. in that a exchange platform both products cash larger as we're the of in we offering previously. services was the in that Obviously, markets in general, excited about lot heavily streaming foreign direct the markets, as going about

So, Quote-Driven big X.X. Markets we X.X, making is call one of what QDM we're the in investments

And our of to our launching be direct to do it after Business. that are expect our we now that we're Business, expect doing we state-of-the-art middle business. that we that on FX best-in-class will launch FX Treasuries we – be in a platform. in in the And We and be the launching streaming

So that, previous lot excited help. calls RV is But about on about we that still so And I getting a RV far. trading talked are uptick. trading, even progress should before the

we Wednesday daily did X.X million we month million June. in volume XXX daily average and did XXX the of week did it last average billion. So, volume Last

to So, APIs of starting do we're where not had just results the participants have yet is – automated bulk hoped. show of connecting in our an environment participants many This the we bulk that the functionality. of the to actually our

So, this of users advantage it manual who are taking at this point. is

did the We have week ISV don't to electronic we in time have the customers So, the yet. the a there first functionality. offer major community new their testing bulk of for in last

to very we So, see has the offer in coming are to excited month. what that

to that, increments minimum we increments, pricing three-year three-year addition very note significant, reduced have positive that In price impact. minimum the

a a they volume at XX typical billion to look you If XX three-year day. billion a average of from went notes, daily day

individual a entire security. So, that relative to we relative platform basis saw in the XX% a on increase

also to are having other So impact. and are very relative things that other we positive excited that. about commissions a that are moves optimizing There taking

you share had market significant the at the BrokerTec overall dealer-to-dealer in while industry, over of If couple years previous lost look space. the

last have the the of – quarter Q year, June, If this flattened and at out market you of share quarter sorry, we year, that look of fourth first month level.

XX%; look the in at first we you quarter, at were we if XX% XX.X%. we June fourth were and at were So, quarter,

question. there it relative So, the stabilized services, uptick Thanks grow we in is the functionality. as share in we and do that has traction getting further it for to and expect greater new of new are products the the platform

Alex Kramm

first contributing you any we've the that in put that a benefits have what the deal bit line? attempted question, talked little part you in is to is of, And on this – the terms so hey, quickly. to more have and so revenue about we just top about that you've Very far, of can think the my the just things terms of seen

Sean Tully

revenue terms in We put have them not far. so

You separate can these, know, for you there charging at any right. of look isn't a

So, overall no a the does, they that are functionality matter volumes are, participant what charged using similarly.

a have would impact. it So, different

Alex Kramm

again. Okay. Thanks

Operator

you. Thank

Dan with from comes Our question next Jefferies. Fannon

Dan Fannon

just John, step the question a second Good decent still up regards My obviously is but the you, in Thanks. guidance, see morning. with we to half. for implies expenses, the reduction,

anticipated cost end we of could and are about us what coming with you we to So, of what understand if of are where just kind those expect, are you update talk realized also, those synergies And would XQ? the just this where I the today? could by what you've year, kind then as but where in? of said on

John Pietrowicz

for question. the Sure. Dan, thanks

occur As is XXXX by million spending our the million. the we plans. second half holding flat expenses, spending this the with than same but team spend the of marketing the year higher below the first year when as and pardon our guidance we year Spending we you excellent our the second reflects to me, virtually see later $XX reduced well. traditionally entire had tend When the costs higher year also to built last and in heard from higher under my comes has to second in we remarks, half expenses job the tend projects the advertising it an The at and normal spend prepared we're a with managing of CME year done anticipated out in than revised pattern, guidance half levels. $XX half, just in

first also the half we the environment half delay of plan year year, clearer. to the second chose the During of became some to the as spending

we For to and some seeing of employees our clients office. brought our also return example, back the we're

the half between first spending the advertising of the marketing half terms year. and under of costs, just and second increased In of reflects type the

our of that We targeting accelerating will reflects balance which drive also portion our contingent integration of for products. VBS, as a The spending depreciation. technology on successful we continue spending of be advance labor finally, spending micro higher we higher some to And anticipate projects. the

cash in As some our platforms investing of we Sean businesses. markets in are indicated, the streaming

of an realized off And sight of for of P&L $XXX half. we a then synergies So the by very in got to our that gives realized rate you finish just idea change to in in million approximately line And million achieving $X versus strong we've in terms of run year second first half synergies XXXX. our synergies on, end.

Dan Fannon

Great. Thank you.

John Pietrowicz

Dan. Thanks

Operator

you. Thank

from comes with question Worthington JPMorgan. next Our Ken

Ken Worthington

Hi, good for morning. Thank question. my you taking

the where next talked help encourage in [ph] microrizing As we three years? taking globalization, its about is themes in you say see actions most actions think products. CME important growth, drive the the of do to to or interest question products, volume that greater about the So, five you to past as utilization the on over open in you focused Rich’s

changed You have minimum and done you've price acquisitions. increments,

as drive resources where growth are as of next future about focusing the you think ahead? to level look So, that your we we

Terry Duffy

well. thoughts you. thank and going will start, Ken I'm on some of that then your to Julie early in have us chime as Yes, Winkler give

Julie Winkler

Yes, thank you for the question.

growth that the I for continued but new themes just have adoption, pointed drive, are you something out to think those that not very successfully product utilized we business.

continue clients in year able that to our customize our many more experience digitally, this hybrid I businesses focused pretty been think has over be been of the be ability something a to as to environment, reach we've that have. and as to half on last we

And happened global even us part it's so, was it easier what than is, those to for reach clients before.

educational in relates properties that the with with be education terms micro well. those We've there of back the broker extremely we do in in digital and our really as them investment continued will So, that efforts. work the that been personalization investing the in space to active partners

traders. half example, we've the alone million education traders increased such of first over have – year a our this of the partners retail reaching in As had XXX%, one over

we make our is how trading be in that successful continue people in so, to markets. And

going see we're continue investment. to So, that to

lot on I needs. continuing continued that continuing pointed Derek, efficiencies. about of to for clients Terry with client the deliver mean, of a continues and that transition. that We for be out to to clients. As are know move there is earlier, capital years in we we and a very as our it so Sunil forward is hallmark our just been how business can a on work Sean, thing this about forward top-of-mind And far be going many understanding that last work who has will

Terry Duffy

expand something did I but comments, to Julie's think, is on just efficiencies that resonates the Ken, she upon this them, And, theme organization. touch capital throughout

we to people We are question, at it as looking become more adding with efficient touched bit against get constantly different which a on more offsets will going again, to ways. and lend John open continue earlier interest. our BrokerTec little futures to products, are we the more

onto interest. We around at multiple the into Globex here One the about FX the open believe who've before platform another futures of talking for to CME. integration questions participants, open them you're in onto good participate never in The a interest we have EBS traded additive was opportunity markets, platform, your – FX. the pool

So, a which all done this ever seen. the things is lot doesn't we've can that know the be most environment very additive in, the that include riskiest has we even of one living of world we're environments and that

So, cash to in that open can the manage futures efficiencies needing did to we and people confident products along interest and our risk all the the asset acquisitions with build feel of the classes. some continue of with the products with we capital

Ken Worthington

thank Great, you.

Operator

you. Thank

Goldman Sachs. Our next question comes from Alex Blostein with

Sheriq Sumar

how This the financial filling and on as update provide venture for a or you. should business so Alex. think CME Thank any whole? is we joint Hi. progressing joint Sheriq it is and for of implications Can the in how about an the you venture us far

John Pietrowicz

for Yes. John. is the question. This Thanks

we gone running has when making the hit extremely the well progress on joint get The and excellent planning approvals. we well venture. the to ground believe necessary we positioned integration We’re are of the formation

approval to the received and approvals, regulatory all We’ve continue of regulatory process. move we on waiting the In one financial through antitrust are we approvals approval. terms

really launch is a got we met so with what’s joint relationship are exciting to this great with think we’ve So, them poised and or a very week Markit. ago. We just I venture IHS

our which with clients. relationship our, think for one so, a the we winning everybody joint venture be second great of and common strategy has also S&P with will Global, should a And joint venture the vision I got We’ve them. the this think be for

So excited has them working about Markit with been their we’re with we’ve merger got completed. – once IHS

I implications, of terms will terms joint the the the in gets update financial once provide venture launched. an financial In implications of

we anticipate joint a and on – changes. perspective be unconsolidated the material – we see are the revenues earnings from changes netted S&P/Dow location is equities venture. which subsidiaries for some into geography don’t Jones will statement our expenses We any where companies do and will the contributed you We have income same on

So about mean what joint could marketplace. it the really for the venture, excited

the well risk provider think We leading – will business. we’re earnings mitigation to and very be positioned accelerate to going And services. of I be on that the post-trade very

Sheriq Sumar

so Thank Got it. you much.

John Pietrowicz

you. Thank

Operator

you. Thank

next Lau Our comes from question Owen with Oppenheimer.

Owen Lau

for you pieces Do to all fill? analytical strategy bit you Thank my on area your have a you in the tools? question. elaborate you this morning. launch Thank taking the to would gaps have more like Could please Good what you you. more are and

Sean Tully

is Sure, Sean talking. this

last about over launched We that the new in tools so. analytical we the are have very excited year or particular

as Treasury treasury for it that marketplace it's government the goes as launched every X,XXX at as the side, where our look in the on purchased issuance, to security example, unique had rate users really we Reserve's day. over Tool. And as the Federal new look U.S. TreasuryWatch TreasuryWatch futures at Tool activity well BrokerTec. the well the and has now On

to is offers we into that to and futures from the value our to cross-sell significant has futures cash. the enormous a markets amount of customers cash gotten our that and products tool traction think helps So an

exchange FX on are our terms tools to the new our Those year. tool, FX each several we tools Market We last and users. Profile Vol in with Options addition that, likewise our side, Rate unique of launched thousand Converter Monitor, In three foreign tool. FX launched Swap

Market FX XXX represented. at Swap look FX Profile, XXX companies our you Monitor, companies different different Rate If represented

the cross-selling our tools. all are is customers seeing been an And new though. get penetration and for growing enormous where of very customers XX these value client you're have of acquisition months over potential out This we last those of positively. and So just

markets that you the If one have derivatives our we and data markets data on go-forward first look our value basis, the it combine and with with is the great synchronize propositions for time. of to acquisition at ability the this a this of cash very

our I FX We have tool. seen, Market said as earlier, uptake on Profile good

process markets it shows not and levels that. launching both in to spot really just order depth And use actually and are shows in We markets, only cash the to of order liquidity terms in to how in of of to book. optimize greater their in participants spot version XX order which that execution different X.X they need exchange, futures addition how both but that pools, foreign much the do

later We Treasury initial treasury our treasury this futures will summer Market launching likewise data synchronize the data. be Profile time first will the cash for which with tool, our

So those are developments. significant

on look over full-blown TCA we plan though into what you at the tool. year, that will turn next If

So have different already Quant of a allows tool executing at EBS exchange. ways your three a TCA you on foreign we that Analytics, look to EBS

it You order the limit can look central at in book.

providers. look What an look at it once are at to move Globex streaming it of alternative existing it on well. look we on can adding platform liquidity as at equivalent Or liquidity ability direct with your terms providers. to you futures over is to in the set can streaming that going third, to with we You be our direct EBS

efficiencies, which advantage behind over much we're that But customers we do. we order to of provide next the to have provide assets is more. take that relative So our able unique have is be new year, we and much, to unique to everything this to really in started set create started analytics of going to to

Derek Sammann

our capabilities. options consecutive QuikStrike work utilization. done largest another our is That business, of the capability leading has options led built our this Owen, in think, monthly that I record third we've to have our some a the quarter of Bantix lot part class work with multi-asset analytics of we – world's of

we now CME We our revenues ever track analytics. highest front-end, Direct record are right the deliver embed where on to through QuikStrike our

As this looking you in options based in specific customers more has us our for manage liquidity we've each risk individual Those publishing Group. CME the brought volatility to we know, We asset at business. options benchmarks on to now CME XX – are indices benchmark found class. reside customers

we new in work to us out front-end to the options is generating analytics which new generate So continue do well. business, customers, build leading bringing market our new futures business as

path. we'll continue down push So to that Thanks, Sean. Thanks, Derek.

Owen Lau

you much. Thank very

Derek Sammann

you. Thank

Operator

Morgan Thank question [Operator next Our with Instructions] comes from you. Cyprys Michael Stanley.

Michael Cyprys

pool? April up there that of sequentially, And impact data can revenue the revenue the next meaningful have information say what market growth marketplace It pieces of to which help most changes offerings you. morning. offerings touch question. could the enhance you data talk grow Hey, was see you revenues the opportunity had like that quarter? you taking went I as good $X you only went And hoping moving dynamics the Thanks bring maybe could think in there. the some the couple years, through for bit flesh you pricing services existing so to to and I services in growth just if little would that upon the set about million you profile the also over looked out just the potential? Thank about well new a information could the of the

Julie Winkler

another Thank had Yeah, quarter. you market data really question. great for the

its down What over their that we're seeing that front, is this we the for we're per is real-time of QX are user stabilization $X with is right to that the less we And little at QX business and going increase in And DCM. market needs. things where work audits, as in mentioned, stay have so a is happened we the the professional that on QX utilizing as entirety data. the capture audits one results. up that flow had on to have we did our they price that across And our the data, that Yet, in to in in continued per you right the ensure customers process. depending we've that licenses subscribers

the with driven there. largely it's So audit results

In that well what's growth exciting and referenced as benchmarks, Sean new We've as is us market really earlier a terms market number CVOL areas pricing. of all cash of part and other the non-display changes policies our of our we've that made indices, data, product of in got data etc. now some that portfolio, about

seeing of so from taking all making services. those products lot a we're clients And interest advantage of sure and of they're of

very for Our other about well. derived business continuing is is calls also past And performing cloud. talked that that some is to on we've the still the our thing through quite be interesting clients accessing data

in users. And process. that platform the Cloud to clients being up launched are new production Google now, so with now certification we've global there are that have that in added XX We're and we nearly more XX

and new most their are data able that like the – relevant this CME users data turn on to our so the ability and to are is to connectivity clients to take that they these And is be off how on. they interested what and

this to in cloud products year. later that So we're in working data the presence really expand

is that is So working on. the team something

think capabilities of And front being saying additional on other a so what work with done lot can it's I the of Sean's analytics we tools team and deploy.

have valuable what to a that's monetize. we're of and assets We and data lot very, working very

Michael Cyprys

Great. Thank you.

Operator

Thank you.

Equities. with Atlantic from question Our Clinch next Simon comes

Simon Clinch

Thanks as taking launching kind around you're question. the your here. the to thoughts my I'm Hi. for products crypto and markets of curious

retail particularly, of your and kind used how also by out to in kind the next seeing then of see broaden clients? of what you're years the couple institutional opportunities the products being Just but you split between

Sean Tully

obviously again participants. seeing Bitcoin a better combination as very as community. order are a a penetrate large active in small well for trader Yeah, active was a the Micro launching of smaller we our clients reason to And

scheduled of Bitcoin As Micro the of the and Bitcoin fees. you'll futures, of recall, the the size X/XXth half

So and did us a penetrate we're community allow about to new that excited deeply very that.

to If had than you I growth revenues the past start talking talking is I crypto look and I last about relative earnings did call, overall, would in I the we've believe differently volumes that start said in achieved. I the

you we're initially ADV. earlier, is obviously $X.XX look running when our RPC today, quarter second launch product, significant our The and the $X.XX, said John we $X.XX. contracts around in If it XX,XXX Bitcoin, Bitcoin we have incentives. Micro

earlier, As rack I fees are rate said the half.

like time, And we launch you at if actually year-to-date. those a the doing we're reduce there, for XX,XXX whenever we time. did grow product, incentives. So quarter, Micro-E-minis, XX,XXX at, look we typically example, In more over historically if look second RPCs over you new a And our those day.

Either huge at day. I honestly. So contracts success a and a a very – $X.XX X,XXX futures there think

So a against you'll with look average pleased if volumes, and substantial you very we're see we've those far. grown so RPCs business now at that it daily those

Simon Clinch

Thanks.

Operator

you. Thank

comes Our next from question KBW. with Kyle Voigt

Kyle Voigt

morning. good in to volume of better be the specifically, July, of inclusive pace your some volume, volume Hi, know to-date in but guess year the even July lowest XXXX. highlighted since is you some energy I ADV XXXX energy on I

how give are out growth So then the in this more has to years? or next are the color just as of weakness you few the big And factors importantly, pandemic what guess, can structural over kind more as that factors. factors the curious year, as some had much that driving, the impact if to driving all I re-accelerate product segment catalysts we other look versus see do the that you

Derek Sammann

last in then half were it now are coming year. of from of very actually tale back couple the actually up languishing actually the when the Yeah, kind $XX, significant is before, shale of the OPEC+ We the prices all of we've the you've slightly in a That's certainly half for very, last the or first breakeven in, which have June unclear the yeah, year-on-year. and a right the good and What side for above the exactly was significant two of half the year on of a a volumes year year, things. actually we we've wanted, that prices We U.S. WTI around at breakeven what saw U.S. up and come half demand the seen thanks, well And levels. saw X% Kyle. months of both agreements what those shale lot of OPEC from comments first mean, demand our different over producers. saw disruption the of years. seen what of they seen, back I you picture picked trail-off last really And oil stabilization a disruption question. with was year below

Our volumes we've the volume July are up at a market year. is picked overall What up from the of XX%. back the WTI actually half has seen perspective

interest contracts side much volume things. market to we've back million you outperformance year, terms, contract to out we year-on-year. a saw about in look When last stable or in Brent real seen the our November of is Our so. of WTI at relative been has X.XX open bottom share open pretty Where WTI interest that

on in three-year contracts. are million customers, We have almost recovered back they That interest highs. of to now the side the all that. X.X the the sit performers side close in on WTI know with outsized the to up growth We commercial bringing open

participants share last needs. What's back on to they with customer Group. commercial focus couple business significant focus We end-user what months. are looking a they their what of interesting terms. the return the that the on CME are back XX% on. focus of CME That open had increasingly actually hover into look we've the market when in the typically, would and and coming we interest to over XX% WTI We our compare manage interest between is So and ICE Brent. at is the market market about share at you can of versus We're go sitting about share and at WTI you open open sum numbers, XX% interest

historical almost above we're point high now. right So our

high July the strong the per we've highest we've day X. million weekend TSA in travel are reach levels numbers XX think gasoline that of we record reaching of fundamentals checkpoint demand read barrels seen, in seen XXXX. So the

Just two weeks at traveler million. X.XX ago throughput

money there. but That's seeing gas there going. over certainly demand a in early recovery. the and calls in we're also where specter missing the of the some that's is we the is concern of like being UAE there of months, couple greater So oil has shale Arabia, during less been side the think at little this next stability about of raising more agreement it crude means probably to Saudi stability XXX that an OPEC+ That airline market. whole so stages came

Offsets open contracts the those range full the new market crude our in across for doing unleashing contracts our seeing that contract. Global the to emerge out energy customers Emissions with, and participation. efficiencies preparing of – work the referenced And global as our Global – products. reading WTI we're Micro we're customer we're oil well. capital And into interest new nature-based the So bring We're as also Emissions that transition we're before, as both Offset pushing Terry we're the

expanding are preparing for we're not well. So we customer as energy only base, transition our

so about we're strong. good where we highs, at. So on. we like is interest feel Fundamentals Open what's at three-year going are

Terry Duffy

And to you look trading. levels when I just you of add that Kyle, that, XXXX referenced to want at,

to industry going And year world the got absolutely just lockdown what as are demand And the just and look I we think complete at TSA ago. so a a just getting Derek happened highlights few airline zero. the forth. again, rebuilding now numbers a were You that. in when was We ramped out up in such pointed

we've think So only ago, never lockdown XXXX in a that, we're situation really between at that a is to the we one, tough I seen had year measurement because today before. a of

Kyle Voigt

helpful, interest pricing. certain of WTI like That's open seen on think that from seeing the kind that or to any is I and you're really the negative Terry. since with of fact up Derek event haven't just from material? Do any curious just that trends speak a past quick, you follow users had seeing quarters to of effects anything you pointed you that even lingering kind you couple we've that If are just real now

Terry Duffy

seen haven't material. anything We

a And when a happened at and same at of amount complete put I up down of we tremendous of the ramped I'd had then a had guess demand you on We April think before time locked at that, perfect in to again, that of production zero We we say the lockdown. height right that. what look XXth all time. I to that at were sudden, being nowhere XXXX, storm it. product like as with

storm was time. at moment So given that a perfect in that

and about now as looking still different Delta are But there things light that, hopefully. business as headwinds understand pandemic. of in is at they some that people variants the nature. a that far the think talking We keep and I

just So there in is again. trepidation I'm about what assuming general the some could potentially around happen world

predicting So any lingering is no effect. but a still pricing is here, one that

this We realize. to that's are yet think people not what need out I and of pandemic

Sean Tully

talk growth being the I'd when indicator about the the that OI in its Yes, is of in to probably biggest the add participants X.X point with that strongest fact so stat commercial marker the of the there, hedging X.X to the the is highs I the think driver three-year the being themselves, that right we think are growth participation, where biggest only the increased key participants I commercial that now. in participants risk million, increase physical sitting market's participants million tells the you Kyle,

Kyle Voigt

very Great. much. Thank you

Terry Duffy

Yes.

Operator

Thank you.

question next Blostein Sachs. Our Alex comes Goldman from with

Sheriq Sumar

XQ? Can Hi. the us filling to tell as John. balance ending you for And Alex. was Sheriq for is again This what in is this one Fed in

John Pietrowicz

Great question. Sure.

of that a you very portion statement, mean, a because our when quick income are couple So items at, got of look points there. on performing well maybe the couple other income we've of just I

performance cash last balances sequentially returns the from from been the S&P/Dow our has about basis basis of June one basis want $X extremely up everybody clearing on XX points. same share also And QX. quarter. at The IOER there our and were JV, was were held change see average the returns of on you'll basis up about of a investment about in full well to million. the – saw Also, point that Jones billion JV, is performing XX% from impact up in basis points last we're remind first our increase XX to activity our points. XX $XX.X to increased an from points was The We And five that two quarter that year. just our I house. and quarter and the –

of So on income other you portion of our income highlights that some statement. the kind gives

Sheriq Sumar

Thank you.

Terry Duffy

no further If Okay. questions? is there

Operator

no at There sir. this further are questions time,

Terry Duffy

morning. on Once very much. you Thank have. thank safety this next look we joining Be families, wish you your Thank health and want call the quarter. you and we the to to that forward to again, you us Okay. and you. talking can safe everybody We for all

Operator

concludes ladies you gentlemen, and today’s this teleconference. Thank

disconnect. now may You

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