CME Group's Market Data Revenue Hit a Record $243 Million Last Quarter. Can It Carry the Stock When Trading Slows?
The narrative is bullish, but numbers (and pictures) are needed to put it in proper perspective.
CME Group's revenue from market data reached a record $243.1 million in the third quarter, accounting for 14% of its total top line. While this figure is significant, it is not enough to sustain the company through periods of slower trading activity. Despite the current high market, the exchanges are still not at the revenue levels they reached earlier this year.
CME Group's market data business shows consistency, remaining strong even when transaction and clearing fee revenue fluctuates. The company's growth trend seems to be independent of the economy's condition, as it has institutions reliant on its services regardless of the economic climate. This resilience suggests that CME Group's stock could still be a good investment, even if its data business is not a major driving force.
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