CME reported a solid Q3 with record market data revenue and high open interest, though total revenue dipped slightly year-over-year. Management highlighted growth in crypto, new event contracts (including a FanDuel partnership), and the launch of BrokerTec Chicago. The tone was confident on innovation and cost control, with FY2025 expense guidance lowered modestly. No major cross-company signals beyond the Google cloud partnership. Q3 revenue $1.5B (-3% YoY), adjusted EPS $2.68; record market data revenue of $203M.
CME reported a solid Q3 with record market data revenue and high open interest, though total revenue dipped slightly year-over-year. Management highlighted growth in crypto, new event contracts (including a FanDuel partnership), and the launch of BrokerTec Chicago. The tone was confident on innovation and cost control, with FY2025 expense guidance lowered modestly. No major cross-company signals beyond the Google cloud partnership. Q3 revenue $1.5B (-3% YoY), adjusted EPS $2.68; record market data revenue of $203M.
CME reported a solid Q3 with record market data revenue and high open interest, though total revenue dipped slightly year-over-year. Management highlighted growth in crypto, new event contracts (including a FanDuel partnership), and the launch of BrokerTec Chicago. The tone was…
Q3 revenue $1.5B (-3% YoY), adjusted EPS $2.68; record market data revenue of $203M.
Record crypto volumes (340K contracts/day), driven by Solana/XRP futures; 24-7 crypto trading planned for early 2026.
Announced event contracts partnership with FanDuel for distribution (not sports initially).
AI is not explicitly discussed in this transcript, aside from mentions of the Google partnership for tokenization and technology transformation.
Management remains confident in organic growth, product innovation (crypto, event contracts, BrokerTec Chicago), and cost discipline, with no signs of demand deterioration despite lower volatility.
Capital expenditures were approximately $19 million in the third quarter. The company is investing in operational readiness for 24-7 crypto trading and tokenization, with cost discipline noted in managing Google-related spend.
Management expressed confidence in growth strategies across retail, crypto, and fixed income, emphasizing record results and innovation.
CME is deepening its partnership with Google on tokenization and cloud infrastructure, which could drive future cost efficiencies and product innovation for CME and reinforce Google's cloud position in financial services.
“we've been fortunate to be partnering with Google over the past few years towards that initiative”
Hey, good morning. Thanks for taking the question. Wanted to focus on 24-7 trading, understand in crypto markets you're going to be enabling that early next year. I was hoping you could elaborate on some of the hurdles you've had to overcome and what could be the scope to enable 24-7 trading for other products? What can make sense next, the time frame around that? And then just more broadly, how do you think about the role of tokenization as a catalyst to support 24-7 trading over time? How are you experimenting with that today or May over the next year or so?
Yeah, sure. Thanks for the question. As Terry mentioned, we do know that tokenization is a hot topic and we've been fortunate to be partnering with Google over the past few years towards that initiative. So we do continue to progress our efforts with them, starting with tokenizing cash to begin with. The technology that they bring to the table through the Google Cloud Universal Ledger does enable tokenization of other types of assets, both on the product side and the collateral side. So we plan to continue progressing with our initial phase, tokenizing cash, through the end of this year and enabling that for Go Live in 2026. That will allow the value outside traditional banking hours, starting with cash and then other assets in the future. That is an important element to risk management, as Terry mentioned. On the general risk management side, we also think it's prudent to make sure that the collateralization in the system supports those exposures that can accumulate, especially over the weekend. And so our approach will be to make sure that collateralization in the system is consistent with the risk that participants can bring over the weekend, just how we monitor that activity today, knowing that markets open on Sundays, for example. So we look forward to the offering building in many phases and think that the tokenization efforts we have on the way with Google are timely and being able to roll that out for 2026 as well.