UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported)
October 4, 2011
CME GROUP INC.
(Exact Name of Registrant as Specified in Charter)
Delaware | 001-31553 | 36-4459170 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File No.) |
(IRS Employer Identification No.) |
20 South Wacker Drive
Chicago, Illinois 60606
(Address of Principal Executive Offices) (Zip Code)
Registrants telephone number, including area code: (312) 930-1000
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 7.01. REGULATION FD DISCLOSURE.
On October 4, 2011, CME Group Inc. (the Company) will hold its Analyst Day from 10:00 a.m. 3:00 p.m. (Central). Presentations by executive management will cover the Companys strategic growth initiatives, as well as offer customer perspectives during two panels. A complete copy of the presentation slides and a link to the live video webcast will be posted and available on the Investor Relations section of CME Groups Web site at www.cmegroup.com.
Certain information which will be discussed during the webcast as set forth in Exhibit 99.1 is being furnished to the Securities and Exchange Commission in accordance with Item 7.01 of Form 8-K. The information is presented as of October 4, 2011 and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided.
The information contained in Exhibit 99.1 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in filings under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
Excerpts from the Companys Analyst Day presentation as set forth in Exhibit 99.1 is being furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CME Group Inc. | ||||
Registrant | ||||
Date: October 3, 2011 | By: | /s/ Kathleen M. Cronin | ||
Name: | Kathleen M. Cronin | |||
Title: | Managing Director, General Counsel and Corporate Secretary |
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Excerpts from the Companys Analyst Day presentation materials. |
October 4, 2011
October 4, 2011
CME Group Analyst Day 2011
Exhibit 99.1 |
©
2011 CME Group. All rights reserved
Forward-Looking Statements
2
Statements in this presentation 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. Among the factors that might affect our
performance are: increasing competition by foreign and domestic entities, including increased
competition from new entrants into our markets and consolidation of existing entities; our ability to keep pace with
rapid technological developments, including our ability to complete the development, implementation
and maintenance of the enhanced functionality required by our customers; our ability to
continue introducing competitive new products and services on a timely, cost-effective basis, including through
our electronic trading capabilities, and our ability to maintain the competitiveness of our existing
products and services, including our ability to provide effective services to the
over-the-counter market; our ability to adjust our fixed costs and expenses if our revenues decline; our ability to generate
revenues from our processing services; our ability to maintain existing customers, develop strategic
relationships and attract new customers; our ability to expand and offer our products outside
the United States; changes in domestic and non-U.S. regulations; changes in government policy, including policies
relating to common or directed clearing and changes as a result of legislation stemming from the
implementation of the Dodd-Frank Act; the costs associated with protecting our intellectual
property rights and our ability to operate our business without violating the intellectual property rights of others;
our ability to generate revenue from our market data that may be reduced or eliminated by the growth
of electronic trading, the state of the overall economy or declines in subscriptions; changes
in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of
customers (whether the customer receives member or non-member fees or participates in one of our
various incentive programs) and the impact of our tiered pricing structure; the ability of our
financial safeguards package to adequately protect us from the credit risks of clearing members; the ability of our
compliance and risk management methods to effectively monitor and manage our risks, including our
ability to prevent errors and misconduct; changes in price levels and volatility in the
derivatives markets and in underlying fixed income, equity, foreign exchange, interest rate and commodities markets;
economic, political and market conditions, including the volatility of the capital and credit markets
and the impact of economic conditions on the trading activity of our current and potential
customers stemming from the financial crisis that began in 2008 and any other future crises; our ability to
accommodate increases in trading volume and order transaction traffic without failure or degradation
of performance of our trading and clearing systems; our ability to execute our growth strategy
and maintain our growth effectively; our ability to manage the risks and control the costs associated with our
acquisition, investment and alliance strategy; our ability to continue to generate funds and/or manage
our indebtedness to allow us to continue to invest in our business; industry and customer
consolidation; decreases in trading and clearing activity; the imposition of a transaction tax or user fee on futures and
options on futures transactions and/or the repeal of the 60/40 tax treatment of such transactions; the
unfavorable resolution of material legal proceedings and the seasonality of the futures
business. 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 periodic reports filed on Form 10-K
and Form 10-Q, which are available in the Investor Relations section of the CME Group Web
site. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new
information, future events or otherwise. Non-GAAP Financial Measures In this
presentation we refer to non-GAAP financial measures, including pro forma results that assume the merger with CBOT Holdings and acquisition of NYMEX
Holdings were completed as of the beginning of the period presented. A reconciliation of
non-GAAP EPS and effective tax rate to our respective GAAP figures is available at the end
of the companys latest financial statements in the Investor Relations section of the CME Group Web site.
NOTE: Unless otherwise noted, all references to CME Group volume, open
interest and rate per contract information in the text of this document is
based on pro forma results assuming the merger with CBOT Holdings and the
acquisition of NYMEX Holdings were completed as of the beginning of the period presented. All data exclude
of less than one cent per contract on average, as well as HuRLO
products and credit default swap clearing. Unless
otherwise noted, all year, quarter and month to date volume is through
9/30/2011. CME
Groups
non-traditional
TRAKRS
SM
products,
for
which
CME
Group
receives
significantly
lower
clearing
fees |
©
2011 CME Group. All rights reserved
3
Accelerating Revenue, Expense Discipline
10%
CAGR
12%
CAGR
7%
CAGR
Long-term target:
Total operating expense
growth of 5%
Total revenue growth of
more than 10%
Contributing to 2012
revenue:
Monthly market data fees
increasing 15% from $61
to $70 per screen on Jan.
1, 2012 (expecting
incremental $25 -
$30M)
Annual co-location
revenue expected to be
between $40M and $45M
*2011 revenue is annualized
*
$10
$15
$20
$25
$30
$35
$40
$45
$50
2006
2007
2008
2009
2010
2011
Revenue per Share
Op Income per Share
Expense per Share |