(Reuters) – Futures exchange operator CME Group Inc on Wednesday reported a better-than-estimated fourth-quarter profit as recessionary fears pushed investors toward its investment tools to hedge against potential risks in their portfolios.
On an adjusted basis, the company earned $1.92 per share, compared with analysts’ estimates of $1.88 per share, according to Refinitiv data.
Red-hot inflation, paired with the U.S. Federal Reserve’s hawkish monetary policy, has roiled markets and added to fears of a recession, prompting investors to hedge their portfolios.
The company’s results round up a mixed quarter for major U.S. exchanges.
Over the past couple of weeks, derivatives exchange Cboe Global Markets Inc’s profit beat Wall Street estimates, while results from Nasdaq Inc and NYSE-owner Intercontinental Exchange Inc lagged expectations.
CME’s clearing and transaction fees, rose about 3% to $981.4 million for the quarter.
Average daily volume, measuring the average number of daily traded contracts on the exchange, rose nearly 6% to 21.8 million contracts in the three months ended Dec. 31.
The company, recognized primarily for its futures products mostly used for commodities trading, reported about 5% rise in revenue to $1.21 billion.
(Reporting by Anirban Chakroborti in Bengaluru; Editing by Shilpi Majumdar)
