CME rate per contract stays low, CBoT rate up
Chicago Mercantile Ex-change (CME) and Chicago Board of
Trade (CBoT) have posted record financial results driven by a
growth in trading volume, higher average exchange fee rates and
disciplined expense management. The announcement came ahead of
the planned takeover by CME of its neighbour, scheduled for
completion in June.
CME saw a 35% increase in net income to $103m for Q4 last
year compared with the same period in 2005. However, for the
second quarter running, CME reported only a small increase in
the rate per contract for the period.
The revenue growth stem-med from a 36% increase in trading
volume and a higher average rate per contract, which bolstered
exchange and clearing fees.
Analysts and investors in recent years have considered the
amount an exchange makes in revenue per contract traded to be a
key underlying indicator of that market's fiscal health, and
have in the past put pressure on exchanges to increase the
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