Feb 4 (Reuters) - Derivatives exchange CME Group posted a rise in fourth-quarter profit on Wednesday, as strong demand for equity and metal products bolstered trading volumes.
Growing uncertainty around
the broader economic outlook, including the pace of interest-rate cuts, and escalating geopolitical and trade tensions prompted investors to hedge their portfolios more aggressively. That shift has supported higher demand for equity products and metals trading.
Total average daily volume (ADV) at the world's largest derivatives marketplace rose about 7.5% from a year earlier to a record 27.4 million contracts.
Metals ADV more than doubled to a record 1.4 million contracts, while equity ADV climbed 22%.
Trading volumes at exchanges generally increase when markets turn volatile, with clients ramping up hedging strategies to manage risk and protect portfolios.
Market data revenue rose 14.5% to $208 million during the quarter, while clearing and transaction fees, the exchange's main source of income, 7.8% to $1.33 billion.
Excluding one-time items, profit attributable to CME shareholders stood at $997.7 million, or $2.77 per share, for the three months ended December 31, compared with $907.4 million, or $2.52 per share, a year earlier.
CME shares gained nearly 17.6% in 2025, compared with a 28.5% rise at Cboe Global Markets, an 8.7% increase in Intercontinental Exchange and a 25.6% jump in Nasdaq.
(Reporting by Pragyan Kalita and Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar)
