(Reuters) – Exchange operator CME Group reported higher first-quarter adjusted profit on Wednesday, helped by record gains in futures and options contracts tied to U.S. Treasuries and increased trading activity in commodity markets.
While hopes for a “soft landing,” where inflation falls without a recession or large job losses, have strengthened over the past few months, the path for interest rates remains uncertain as investors weigh the latest economic data.
Average daily volume (ADV) of CME Group’s (NASDAQ:) U.S. Treasury futures and options rose 12% year over year to a record high of 7.8 million contracts per day, the company said, adding that ADV in its commodity markets rose by 14% to 4.7 million contracts.
Clearing and transaction fees, from which CME derives most of its revenue, rose 0.7% to $1.21 billion. Total company revenue rose 3% to $1.49 billion.
CME Group’s adjusted net income rose to $911.1 million, or $2.50 per share, in the quarter from $882.3 million, or $2.42 per share, a year earlier.