CME's Second Quarter 2004 Volume* of 3.3 Million Contracts Increased 25 Percent; GLOBEX® Trading Up 65 Percent
During June, CME interest rate average daily volume of 1.85 million contracts was up 19 percent compared to last year, driven primarily by interest rate volume on GLOBEX that averaged 655,000 contracts per day. The electronic interest rate volume is up from 53,000 contracts per day in June 2003 and just over 100,000 contracts per day in January 2004. In June, Eurodollar futures on GLOBEX represented 50 percent of total Eurodollar futures trades. CME also saw strong volumes in its FX product group with 204,000 contracts, up 21 percent compared to last June.
For the second quarter of 2004, average daily trading volume was 3.29 million contracts, an increase of 25 percent compared to the second quarter 2003 and 16 percent above the prior quarterly record of 2.83 million contracts per day set in the first quarter of 2004. Volume on GLOBEX during the second quarter was up 65 percent to 1.72 million contracts per day from 1.04 million per day in Q2 of 2003. New quarterly volume records were set in CME's interest rate and E-mini equity products for the quarter. Eurodollar trading on GLOBEX totaled more than 520,000 contracts per day during the second quarter of 2004 compared to 156,000 per day during the first quarter of 2004.
* All volume figures reported in this news release are exclusive of non- traditional TRAKRS contracts unless otherwise noted.
"A significant part of our strong volume performance this year has been the dramatic growth we have seen in CME's Eurodollar futures on GLOBEX," said CME Chairman Terry Duffy. "As users around the globe adjust their exposure following yesterday's initial interest rate hike by the Federal Reserve Board, we are pleased to provide a world-class electronic trading platform where global investors can effectively manage risk."
"During the first half of the year, CME made important inroads in expanding the distribution of our products via GLOBEX," said CME Chief Executive Officer Craig Donohue. "We announced several strategic initiatives, including our agreement with Reuters that will provide access to CME's FX markets via the Reuters Dealing 3000 terminals, as well as the launch of our venture with Tullett Liberty that will provide clearing and trade matching functionality to the interest rate OTC market. Later this year, we will implement a series of technical enhancements that will facilitate the trading of Eurodollar options on GLOBEX and add new spread functionality for trading Eurodollar futures electronically."
Other CME volume achievements attained during the quarter include:
-- Average daily volume of CME's E-mini equity index products averaged almost 1.1 million contracts per day, an increase of 15 percent from last year, and also was up slightly from the first quarter of 2004. This comes as equity volatility continued to drop during the second quarter, and remains down considerably from year ago levels. -- CME's foreign exchange markets also continued to post strong growth and were up 29 percent in the second quarter versus last year. FX volume on GLOBEX totaled more than 112,000 contracts per day, up 99% compared to the second quarter 2003. Foreign exchange volume on GLOBEX represented 64 percent of the total FX volume.
-- The notional, or face, value of all CME contracts traded during the first half of 2004 (through June 30), was $222.9 trillion, a significant increase from the $167.1 trillion in notional value traded during the first half of 2003. The notional value of all CME contracts traded in June was $43.7 trillion, up from $35.2 trillion in June 2003.
-- For the first half of 2004, CME's Clearing House, the largest futures clearing organization in the world, processed all Chicago Board of Trade (CBOT) contracts through its transaction processing agreement. CBOT volume, which averaged 2.52 million contracts during the second quarter of 2004, was up 37 percent versus year-ago levels. For June, CBOT averaged 2.26 million contracts per day, up 15 percent compared to June 2003.
Below is summary of CME average daily volume for the second quarter, the first half of 2004, and the month of June:
CME AVERAGE DAILY VOLUME (In Thousands) Q2 2004 Q2 2003 Percentage Change PRODUCT GROUP Interest Rates 1,889 1,389 +36% E-Minis 1,075 936 +15% Equity Standard 112 134 -16% Foreign Exchange 176 137 +29% Commodities 41 34 +20% Sub Total 3,293 2,630 +25% TRAKRS 68 46 +48% Total 3,360 2,676 +26% VENUE Open Outcry 1,534 1,549 -1% GLOBEX (Ex TRAKRS) 1,720 1,041 +65% Privately Negotiated 39 41 -3% First Half First Half Percentage 2004 2003 Change PRODUCT GROUP Interest Rates 1,655 1,258 +32% E-Minis 1,072 947 +13% Equity Standard 115 138 -17% Foreign Exchange 182 132 +38% Commodities 39 34 +14% Sub Total 3,063 2,509 +22% TRAKRS 92 32 +186% Total 3,155 2,540 +24% VENUE Open Outcry 1,490 1,426 +5% GLOBEX (Ex TRAKRS) 1,534 1,043 +47% Privately Negotiated 39 40 -2% June 2004 June 2003 Percentage Change PRODUCT GROUP Interest Rates 1,852 1,560 +19% E-Minis 910 1,037 -12% Equity Standard 151 194 -22% Foreign Exchange 204 169 +21% Commodities 39 33 +19% Sub Total 3,156 2,993 +5% TRAKRS 41 37 +9% Total 3,196 3,030 +5% VENUE Open Outcry 1,413 1,785 -21% GLOBEX (Ex TRAKRS) 1,694 1,160 +46% Privately Negotiated 48 48 +2%
Chicago Mercantile Exchange Inc. ( http://www.cme.com ) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.6 billion per day in settlement payments in the first half of 2004 and managed $39.1 billion in collateral deposits as of June 30, 2004. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
Statements in this news release that are not historical facts are forward- looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, which can be obtained at its Web site at http://www.sec.gov . We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
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CONTACT: Anita S. Liskey, +1-312-466-4613, or John Holden, +1-312-930-3446, news@cme.com , or Investor Contact, John Peschier, +1-312-930-8491, all of Chicago Mercantile Exchange Inc. Web site: http://www.cme.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Chicago Mercantile Exchange's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.