(Reuters) – CME Group Inc reported a rise in its second-quarter profit on Wednesday, as traders turned to the exchange operator’s products to hedge against market volatility triggered by recession fears.
Demand for exchange’s risk-hedging investment products held steady as investors used them to navigate a challenging market environment riddled with worries of a looming recession and high interest rates.
“Given ongoing uncertainty in both macroeconomic and geopolitical environments, market participants continued turning to CME Group risk management products and services in Q2,” CME Group Chief Executive Officer Terry Duffy said.
The company, recognized primarily for its futures products mostly used for commodities trading, reported an about 10% rise in revenue in the second quarter to $1.4 billion.
Its clearing and transaction revenue rose 9% to $1.1 billion.
The exchange operator’s average daily volumes were 22.9 million contracts.
It said last week it had eliminated 100 positions or 3% of its workforce, and reallocated some positions.
On an adjusted basis, the world’s largest derivatives exchange reported a net income of $836 million, or $2.30 per share, for the quarter ended June 30, compared with $717 million, or $1.97 per share, a year earlier.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shinjini Ganguli)
