CME Group Inc. Q1 FY2026 earnings call

• CME Group achieved record-breaking start to 2026 with highest first quarter average daily volume. • Simultaneously record volume across all 6 asset classes. • International average daily volume reached record 11.4 million contracts. • Delivered record levels of capital efficiency, saving customers over $85 billion in margin per day. • Open interest ended quarter up 11% y-o-y and 19% since start of 2026. • Received regulatory approval to expand DTCC cross-margining agreement to end user clients. • 24/7 crypto trading scheduled to go live on May 29. • Filing to change Micro Equity Index options to be financially settled. • New Dallas environment on track to open summer, with agricultural products migrating to cloud by end of year.

First quarter average daily volume was 36.2 million contracts, highest in history, up 22% y-o-y. Record volume across all 6 asset classes. Commodity sector volume grew 38%, financial products volume grew 18%. International average daily volume reached 11.4 million contracts, up 30% in 2025. Clearing and transaction fee revenue grew 15% to $205 million. Market data revenue up 15% to $224 million. Record revenue of $1.9 billion, up 14% y-o-y. Adjusted expenses $512 million, adjusted operating income $1.4 billion, adjusted net income $1.2 billion, adjusted diluted earnings per share $3.36, all record highs.

• Confident in continuing to deliver value to clients and shareholders with strong performance and ongoing investments in technology and product innovation. • No specific downward/upward revision mentioned, just confident in future growth.

Q: Terry, you mentioned regulatory approval to expand DTCC cross-margining agreement to end user clients and intersection with tokenization of U.S. treasuries as collateral.

A: Suzanne Sprague and Terrence Duffy discussed tokenization efforts, looking at ways to enhance collateral mobility and capital efficiencies.

Q: Patrick Moley asked about perpetual futures and retail engagement.

A: Terrence Duffy and Derek Sammann discussed that perpetuals are against U.S. law, importance of convergence for hedgers, and true volumes in perpetuals.

Q: Daniel Fannon asked about Micro Equity Index option change to be financially settled.

A: Terrence Duffy and Tim McCourt explained why now, client focus on micro contracts being retail-focused and preference for financially settled mechanisms.

Q: Kenneth Worthington asked about WTI evolution and Venezuela's impact.

A: Derek Sammann and Terrence Duffy discussed WTI as global benchmark, growth in global adoption, and uncertainty around Venezuela's impact.

Q: Benjamin Budish asked about market data and retail team.

A: Julie Winkler and Lynne Fitzpatrick talked about market data revenue growth, sim participation, subscriber growth, and prediction market volumes.

Q: Alexander Blostein asked about energy markets health.

A: Derek Sammann and Terrence Duffy discussed broad-based activity, open interest resilience, and options business helping manage risk.

Q: Michael Cyprys asked about partnership with Google, tokenizing cash, and cloud migration.

A: Suzanne Sprague, Lynne Fitzpatrick, and Terrence Duffy discussed tokenizing cash timeline, stablecoin progress, and cloud migration benefits.

Q: William Katz asked about capital allocation and adjusted expenses.

A: Terrence Duffy and Lynne Fitzpatrick talked about capital allocation, dividend, share repurchase, and adjusted expenses growth.

Q: Craig Siegenthaler asked about prediction markets FCM JV with FanDuel.

A: Terrence Duffy and Tim McCourt explained partnership details, no change in relationship.

Q: Brian Bedell asked about prediction markets KPI contracts and collateral balances.

A: Tim McCourt and Lynne Fitzpatrick discussed regulatory aspects of KPI contracts and April collateral balances.

Q: Will Qi asked about market data license changes.

A: Julie Winkler talked about data license changes and market data revenue growth.

Q: Simon Clinch asked about BrokerTec Chicago.

A: Michael Dennis discussed BrokerTec Chicago's progress.

Q: Christopher Allen asked about buyback philosophy.

A: Lynne Fitzpatrick talked about using OSTTRA proceeds for repurchases.

Q: Chris Allen asked about buyback philosophy.

A: Lynne Fitzpatrick explained use of OSTTRA proceeds for repurchases.

Q: Michael Cyprys asked about expanded treasury cross-margining.

A: Suzanne Sprague and Lynne Fitzpatrick discussed savings potential and ramp-up of cross-margining.