CME Group's fourth-quarter profit rises on strong hedging activity
Feb 12 (Reuters) - Exchange operator CME Group (CME.O), opens new tab reported a higher fourth-quarter profit on Wednesday, helped by increased hedging activity by investors looking to mitigate risks from geopolitical and economic uncertainty.
Market volatility remained high in the quarter due to tensions in the Middle East, uncertainty around U.S. President Donald Trump's policy and the Federal Reserve's interest-rate cuts.
Trading volumes at exchanges tend to jump during periods of heightened uncertainty as clients increase their hedging activities.
The company's total average daily volume rose marginally from a year earlier to 25.5 million contracts.
Net profit attributable to the common shareholders of CME stood at $863.7 million, or $2.40 per share, in the three months ended December 31, compared with $804.3 million, or $2.24 per share, a year ago.
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