Q1 2026 CME Group Inc Earnings Call

April 22, 2026

Operator: Placed on a listen-only mode until the question answer session of today's conference. I would now like to turn the call over to Adam Minick. Please go ahead.

Speaker #1: On a listen-only mode until the question-answer session of today's conference. I would now like to turn the call over to Adam Minick. Please go ahead.

Speaker #2: Good morning, and I hope you're all doing well today. Earlier this morning, we released our earnings commentary, which provides extensive details on the first quarter 2026, which we will be discussing on this call.

Adam Minick: Good morning. I hope you're all doing well today. Earlier this morning, we released our earnings commentary, which provides extensive details on Q1 2026, which we will be discussing on this call. I'll start with the safe harbor language. I'll turn it over to Terry. Statements made on this call and in the other reference documents on our website that are not historical facts are forward-looking statements. These statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any statement. Detailed information about factors that may affect our performance can be found in the filings with the SEC, which are on our website. Lastly, in the earnings release, you will see a reconciliation between GAAP and non-GAAP measures following the financial statements.

Speaker #2: I'll start with the Safe Harbor language, then I'll turn it over to Terry. Statements made on this call and in the other reference documents on our website that are not historical facts are forward-looking statements.

Speaker #2: These statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any statement.

Speaker #2: Detailed information about factors that may affect our performance can be found in the filings with the SEC, which are on our website. Lastly, in the earnings release, you will see a reconciliation between gap and non-gap measures following the financial statements.

Speaker #2: With that, I'll turn the call over to our chairman and CEO, Terry Duffy.

Adam Minick: With that, I'll turn the call over to our Chairman and CEO, Terry Duffy.

Speaker #3: Thanks, Adam, and thank you all for joining us this morning. I'll make a few brief comments about our record quarter before turning it over to Lynne to provide an overview of our financial results.

Terry Duffy: Thanks, Adam. Thank you all for joining us this morning. I'll make a few brief comments about our record quarter before turning it over to Lynn to provide an overview of our financial results. In addition to Lynn, we have other members of our management team present to answer questions after the prepared remarks. I'm proud to announce that CME Group has achieved a record-breaking start to 2026. Our outstanding performance in Q1 reflects the essential role we play in the global economy and the trust our clients place in our markets to manage risk during periods of significant economic transition.

Speaker #3: In addition to Lynne, we have other members of our management team present to answer questions after a prepared remarks. I'm proud to announce that CME Group has achieved a record-breaking start to 2026.

Speaker #3: Our outstanding performance in the first quarter reflects the essential role we play in the global economy and the trust our clients place in our markets to manage risk during periods of significant economic transition.

Speaker #3: The first quarter average daily volume of 36.2 million contracts was the highest quarterly average daily volume in CME Group's history, and represented an increase of 22% compared to the same period last year, and 6 million contracts a day higher than any previous quarter.

Terry Duffy: The first quarter average daily volume of 36.2 million contracts was the highest quarterly average daily volume in CME Group's history and represented an increase of 22% compared to the same period last year and 6 million contracts a day higher than any previous quarter. For the first time in our history, we achieved simultaneously record volume across every one of our 6 asset classes: rates, equities, energy, agricultural products, metals, and foreign exchange. In aggregate, our commodity sector volume grew by 38%, and our financial products volume grew by 18%. Building on the momentum of our record 2025, our global expansion continues to accelerate. International average daily volume reached a record 11.4 million contracts, a stunning 30% increase from 2025. The EMEIA, APAC, and Latin American regions all posted record highs.

Speaker #3: For the first time in our history, we achieved simultaneously record volume across every one of our six asset classes. Rates equities, energy, agricultural products, metals, and foreign exchange.

Speaker #3: In aggregate, our commodity sector volume grew by 38%, and our financial products volume grew by 18%. Building on the momentum of our record 2025, our global expansion continues to accelerate.

Speaker #3: International average daily volume reached a record 11.4 million contracts, a stunning 30% increase from 2025. The EMEA APAC and Latin American regions all posted record highs.

Speaker #3: Remarkably, our international business also saw record volume in all six asset classes simultaneously. Proving that our value proposition is resonating globally. We aren't just growing volume; we're growing client value.

Terry Duffy: Remarkably, our international business also saw record volume in all six asset classes simultaneously, proving that our value proposition is resonating globally. We aren't just growing volume, we're growing client value. We delivered record levels of capital efficiency, saving our customers an average of over $85 billion in margin per day. Additionally, open interest ended the quarter up 11% over the past year and up 19% since the beginning of 2026. During the quarter, U.S. Treasury open interest reached an all-time high of 36.3 million contracts, driven by unprecedented demand for U.S. Treasury futures and options. This growth reinforces CME Group's role as the deepest and most efficient liquidity pool in the world. We continue to innovate and provide the tools our clients need in an environment that is always risk on.

Speaker #3: We delivered record levels of capital efficiency, saving our customers an average of over $85 billion in margin per day. Additionally, open interest ended the quarter up 11% over the past year, and up 19% since the beginning of 2026.

Speaker #3: During the quarter, US Treasury open interest reached an all-time high of 36.3 million contracts. Driven by unprecedented demand for US Treasury futures and options.

Speaker #3: This growth reinforces CME Group's role as the deepest and most efficient liquidity pool in the world. We continue to innovate and provide the tools our clients need in an environment that is always risk on.

Speaker #3: These include: last week's CME FICC, or fixed income clearing corporation cross-margining agreements, received approval from both the SEC and CFTC to expand to our end-user clients beginning on April 30th.

Terry Duffy: These include last week's CME-FICC or Fixed Income Clearing Corporation cross-margining agreements received approval from both the SEC and CFTC to expand to our end user clients beginning on 30 April. 24/7 crypto trading scheduled to go live on 29 May. We're excited to announce that we will be filing to change our micro-equity index options to be financially settled to better serve the users of those products. Our new environment in Dallas is on track to open this summer, and we will provide a critical testing ground for our clients in advance of two of our agricultural products migrating to the cloud by the end of the year. As we look to the rest of 2026, we are confident in our ability to continue to deliver value to our clients and shareholders.

Speaker #3: 24/7 crypto trading scheduled to go live on May 29th. Also, we're excited to announce that we will be filing to change our micro equity index options.

Speaker #3: To be financially settled to better serve the users of those products. Our new environment in Dallas is on track to open this summer, and we will provide a critical testing ground for our clients in advance of two of our agricultural products migrating to the cloud by the end of the year.

Speaker #3: As we look to the rest of 2026, we are confident in our ability to continue to deliver value to our clients and shareholders. Our strong performance, coupled with our ongoing investments in technology and product innovation, provides a solid foundation for future growth.

Terry Duffy: Our strong performance, coupled with our ongoing investments in technology and product innovation, provides a solid foundation for future growth. With that, I'll now turn the call over to Lynn to review our financial results in more detail.

Speaker #3: With that, I'll now turn the call over to Lynne to review our financial results in more detail.

Speaker #4: Thanks, Terry, and thank you all for joining us this morning. As Terry mentioned, the first quarter was record-breaking across the board. This included growth in our clearing and transaction fee revenue of 15% year over year.

Lynne Fitzpatrick: Thanks, Terry, and thank you all for joining us this morning. As Terry mentioned, Q1 was record-breaking across the board. This included growth in our clearing and transaction fee revenue of 15% year over year. The average rate per contract for Q1 was $0.652. Our pricing strategy includes volume tiering, which results in decreasing rate per contract at higher levels of volume. With volume records in every single asset class this Q1, this volume tiering encouraged incremental trading, providing risk management benefits to our customers and in driving highly profitable incremental volume to the exchange. The combination of our volume growth and pricing structure resulted in an increase of $205 million in clearing and transaction fees for Q1.

Speaker #4: The average rate per contract for the quarter was 65.2 cents. Our pricing strategy includes volume tiering, which results in decreasing rate per contract at higher levels of this volume tiering encouraged incremental trading, providing risk management benefits to our customers and driving highly profitable incremental volume to the exchange.

Speaker #4: The combination of our volume growth and pricing structure resulted in an increase of 205 million in clearing and transaction fees for the quarter. Market data revenue also reached a record level, up 15% to 224 million, marking 32 consecutive quarters of year-over-year market data revenue growth.

Lynne Fitzpatrick: Market data revenue also reached a record level, up 15% to $224 million, marking 32 consecutive quarters of year-over-year market data revenue growth. In aggregate, CME Group generated record revenue of $1.9 billion, up $238 million or 14% from Q1 2025. Adjusted expenses were $512 million for the quarter, and $405 million excluding license fees. Our adjusted operating income was $1.4 billion, or a 72.8% adjusted operating margin, the highest in our history. Adjusted net income and adjusted diluted earnings per share came in at a record-setting $1.2 billion and $3.36 per share, 20% higher than Q1 2025.

Speaker #4: In aggregate, CME Group generated 14% from the first quarter of 2025. Adjusted quarter, and $405 million excluding license fees. Our adjusted operating income was $1.4 billion, or a 72.8% adjusted operating margin, the highest in our history.

Speaker #4: Adjusted net income and adjusted diluted earnings per share came in at a record-setting 1.2 billion, and $3.36 per share, 20% higher than Q1 2025.

Speaker #4: This represents an adjusted net income margin for the quarter of 64.9%. With 200 million, of the 238 million increase in revenue, accruing to adjusted net income.

Lynne Fitzpatrick: This represents an adjusted net income margin for the quarter of 64.9%, with $200 million of the $238 million increase in revenue accruing to adjusted net income. We returned $3.2 billion to shareholders during the quarter, with $2.7 billion in variable and regular quarterly dividends and $536 million in shares repurchased. This quarter delivered the highest volume, revenue, operating income, adjusted net income, and diluted earnings per share in the history of CME Group. These results are a reflection of our position as the world's premier risk management destination. As our clients continue to navigate uncertain times, we remain fully committed to meeting their evolving needs through continued innovation and deep liquidity. We'd now like to open up the call for your questions.

Speaker #4: We returned 3.2 billion to shareholders during the quarter, with 2.7 billion in variable and regular quarterly dividends, and $536 million in shares repurchased. This quarter delivered the highest volume, revenue, operating income, adjusted net income, and diluted earnings per share in the history of CME Group.

Speaker #4: These results are a reflection of our position as the world's premier risk management destination. As our clients continue to navigate uncertain times, we remain fully committed to meeting their evolving needs through continued innovation and deep liquidity.

Speaker #4: We'd now like to open up the call for your questions.

Speaker #5: The phone lines are now open for questions. If you would like to ask a question over the phone, please press star one and record your name.

Operator: The phone lines are now open for questions. If you would like to ask a question over the phone, please press star one and record your name. To withdraw your question, press star two. The first question in the queue is from Patrick Moley with Piper Sandler. Your line is now open.

Speaker #5: To withdraw your question, press star two. The first question in the queue is from Patrick Moley with Piper Sandler. Your line is now open.

Speaker #6: Yes, good morning. Thanks for taking the question. Terry, you mentioned that you've received regulatory approval to expand the DTCC cross-margining agreement to end-user clients.

Patrick Moley: Yes, good morning. Thanks for taking the question. Terry, you mentioned, you know, that you've received regulatory approval to expand the DTCC cross-margining agreement to end user clients. At the same time, the DTCC has been running a pilot program to tokenize US Treasuries as collateral. As you think about the intersection of these two initiatives, I'm curious how you see, you know, enhanced collateral mobility impacting CME's clearing business and then more specifically, you know, with customers having the ability to move tokenized Treasury collateral in real time, just what that could mean for the industry writ large.

Speaker #6: At the same time, the DTCC has been running a pilot program to tokenize US Treasuries as collateral. So as you think about the intersection of these two initiatives, I'm curious how you see enhanced collateral mobility impacting CME's clearing business, and then more specifically, with customers having the ability to move tokenized Treasury collateral in real time?

Speaker #6: Just what that could mean for the industry writ large. Thanks, Patrick. Suzanne Spragu is here, and she's been working very closely with both FIC and all the folks at DTCC and the regulators.

Terry Duffy: You know, thanks, Patrick. Suzanne Sprague is here, and she's been working very closely with both FICC and all the folks at DTCC and the regulators. I'm gonna ask her to opine on that question to start, and then I'll go.

Speaker #6: So I'm going to ask her to opine on that question to start, and then I'll go.

Speaker #4: Yeah, thanks, Patrick. We are continuing to work with FIC as well as internally on various tokenization efforts. So we think that there is a benefit for the industry to be able to reduce friction in moving collateral, especially for collateral that does not settle naturally, same day.

Suzanne Sprague: Yeah. Thanks, Patrick. We are continuing to work with FICC as well as internally on various tokenization efforts. We think that there is a benefit for the industry to be able to reduce friction in moving collateral, especially for collateral that does not settle naturally same day. U.S. Treasuries is a good example of that. We will continue to explore what we could do together with FICC as well as other initiatives that we're pursuing at CME, including the tokenization of cash and our partnership with Google, as well as looking at other assets that might be of interest in the ecosystem today to be able to reduce some of those frictions and free up liquidity by moving those assets on digital technology.

Speaker #4: Treasuries is a good example of that. So we will continue to explore what we could do together with FIC as well as other initiatives that we're pursuing at CME, including the tokenization of cash and our partnership with Google, as well as looking at other assets that might be of interest in the ecosystem today to be able to reduce some of those frictions and free up liquidity by moving those assets on digital technology.

Speaker #6: You know, Patrick, just to add on to that, I have said and the team has said, we're looking at potentially our own stablecoin here.

Terry Duffy: You know, Patrick, just to add on to that, I have said, and the team has said, you know, we're looking at potentially our own stablecoin here. We're looking at multiple different ways to make that $85 billion a day in margin efficiencies continue to grow. Not only just the margin efficiencies, but the capital efficiencies about how we move money back and forth each and every day, and what's the best interest of every single client. Whether it's through tokenization, stable, using cash and treasuries, other forms of margin that they use with us today, we wanna make it as effectively for them and efficiently for them. I think it's an exciting time for us, and we look forward to informing you more as we continue to roll out these proposals.

Speaker #6: We're looking at multiple different ways to make that 85 billion a day in margin efficiencies continue to grow, and not only just the margin efficiencies, but the capital efficiencies about how we move money back and forth each and every day and what's the best interest of every single client.

Speaker #6: So whether it's through tokenization, stable, using cash and treasuries, other forms of margin that they use with us today, we want to make it effectively for them and efficiently for them.

Speaker #6: So I think it's an exciting time for us, and we look forward to informing you more as we continue out to roll out these proposals.

Speaker #5: Okay, that's great color. And then as a quick follow-up, we've seen some pretty interesting developments in the perpetual future space this year. The S&P Dow Jones JV recently granted an exclusive license for the S&P 500 Perpetual Futures to a relatively lesser-known company on the hyperliquid blockchain.

Patrick Moley: Okay. That's great color. Then as a quick follow-up, we've seen some pretty interesting developments in the perpetual futures space this year. The S&P Dow Jones Indices JV recently granted an exclusive license for the S&P 500 perpetual futures to a relatively lesser-known company on the Hyperliquid blockchain. On that platform, we've seen, you know, volumes explode in commodity perps. Just, you know, with your goal to try and attract more and more retail eyeballs to CME Group's product suite, I'm curious how you're thinking about perpetual futures as a product structure that could eventually become a more meaningful driver of retail engagement. Then just, you know, if you could maybe talk about some of the regulatory or market structure hurdles that I guess would need to be cleared before we get there. Thanks.

Speaker #5: And on that platform, we've seen volumes explode in commodity perps. So just with your goal to try and attract more and more retail eyeballs to CME's product suite, I'm curious how you're thinking about perpetual futures as a product structure that could eventually become a more meaningful driver of retail engagement.

Speaker #5: And then just if you could maybe talk about some of the regulatory or market structure hurdles that I guess would need to be cleared before we get there.

Speaker #5: Thanks.

Speaker #6: So thanks, Patrick. And I'm glad you raised that. There's a couple of things I want to unpack there. First, we'll talk about the JV venture.

Terry Duffy: Thanks, Patrick, and I'm glad you raised that. There's a couple of things I wanna unpack there. First, we'll talk about the JV venture, then I wanna talk about some of the commodities, and Derek can address that and what the true volumes are associated with that. It looks very large in the way they're trading it, but remember, those are in notional value, not in contract terms, the way we calculate our business. Who's on those platforms, how those platforms work, what's the risk management associated with it, and why would an institution potentially wanna participate in something of the way those are structured? First of all, perpetuals are against the law in the United States of America. That's first and foremost. That is where it's at today. They are not allowed under the Commodity Exchange Act of 2000.

Speaker #6: Then I want to talk about some of the commodities and Derek can address that and what the true volumes are associated with that. It looks very large and the way they're trading it, but remember, those are in notional value, not in contract terms, the way we calculate our business.

Speaker #6: And who's on those platforms, how those platforms work, what's the risk management associated with it, and why would that institution potentially want to participate in something of the way those are structured?

Speaker #6: First of all, perpetuals are against the law in the United States of America. That's first and foremost. That is where it's at today. They are not allowed under the commodity exchange act of 2000.

Speaker #6: The centerpiece of that act was how do you define what a futures contract is? It wasn't a bunch of other things in the act.

Terry Duffy: The centerpiece of that act was how do you define what a futures contract is? It wasn't a bunch of other things in the act. The centerpiece was what is a futures contract? It was defined as a contract for future delivery. It was not designed as a contract that never ended. I really believe that for perpetuals, I think convergence is massively important to the commercial producers and other participants that these contracts are designed for. Contracts are not designed, not, I repeat, not designed for speculators or hedgers. They are not designed for speculators or just a pure retail. They're designed for hedgers, commercials, and producers.

Speaker #6: The centerpiece was what is a futures contract. And it was defined as a contract for future delivery. It was not a it was not designed as a contract that never ended.

Terrence Duffy: that and what the true volumes are associated with that. It looks very large in the way they're trading it, but remember, those are in notional value, not in contract terms, the way we calculate our business. Who's on those platforms, how those platforms work, what's the risk management associated with it, and why would an institution potentially want to participate in something of the way those are structured? First of all, perpetuals are against the law in the United States of America. That's first and foremost. That is where it's at today. They are not allowed under the Commodity Futures Modernization Act of 2000. The centerpiece of that act was how do you define what a futures contract is? It wasn't a bunch of other things in the act. The centerpiece was what is a futures contract? It was defined as a contract for future delivery.

Speaker #6: So I really believe that for perpetuals, I think convergence is massively important to the commercial producers and other participants that these contracts are designed for.

We're not in contract terms the way, we calculate our business so and who's on those platforms. How those platforms work, what's the risk management associated with it and why would that institution potentially want to participate in something along the way those are structured first of all perpetuals are against the law in the United States of America, That's first and foremost that his words.

Speaker #6: Contracts are not designed, not, I repeat, not designed for speculators or hedgers or not designed for speculators or just a pure retail. They're designed for hedgers, commercials, and producers.

Today, they are not allowed under the commodity exchange Act of 2000.

Speaker #6: That's the way you have to have a natural buyer, a natural seller. And they need to have convergence between cash and futures in order to run their business, which benefits the participants, not only in the United States, but globally.

Terry Duffy: That's the way. You have to have a natural buyer and natural seller. They need to have convergence between cash and futures in order to run their business, which benefits the participants, not only in the United States, but globally. You need to have these markets. As the great Dr. Milton Friedman said to me in 2002, If we did not have futures contracts today, we would need to invent them in order to move forward with progress. The way the market works between cash and futures is critically important. The decisions that people want on perpetuals, it seems to me more of they're trying to create a contract for the speculator. That's not the mission of the Commodity Exchange Act. That's not the definition of it.

Centerpiece of that act was.

How do you define what a futures contract is.

It wasn't a bunch of other things in the act. The centerpiece was what is a futures contract and it was defined as a contract for future delivery. It was not a kind of a it was not designed as a contract that never ended so I really believe that for perpetuals I think convergence is massively important to the commercial producers and other participants that these con.

Speaker #6: You need to have these markets. There's a great Dr. Milton Freeman said to me in 2002, "If we did not have futures contracts today, we would need to invent them in order to move forward with progress." But that the way the market works between cash and futures is critically important.

Terrence Duffy: It was not designed as a contract that never ended. I really believe that for perpetuals, I think convergence is massively important to the commercial producers and other participants that these contracts are designed for. Contracts are not designed, not, I repeat, not designed for speculators or hedgers. They are not designed for speculators or just a pure retail. They're designed for hedgers, commercials, and producers. That's the way they. You have to have a natural buyer and natural seller, and they need to have convergence between cash and futures in order to run their business, which benefits the participants, not only in the United States, but globally. You need to have these markets.

Speaker #6: So the decisions that people want on perpetuals seem to me more of they're trying to create a contract for the speculator. That's not the mission of the commodity exchange act.

Tracts are designed for contracts are not designed not I repeat not designed for speculators or hedges are not a giant speculators or just a pure retail. They are designed for hedgers commercials and producers. That's the way. They are you have to have a natural buyer natural seller and they need to have convergence between cash and futures in order to run their business.

Speaker #6: That's not the definition of it. So I'll that's something that I'm very much involved with as it relates to perpetuals. Your other part about the volume going into some of these products, I assume you're referring to some on silver, some on oil, and so let's talk about that for a second.

Terry Duffy: That's something that I'm very much involved with as it relates to perpetuals. Your other part about the volume going into some of these products, I assume you're referring to some on silver, some on oil, and let's talk about that for a second. When they listed those on XYZ on Hyperliquid, as you know, the way that market works, if in fact they were to have a tip over in the auto liquidation, they've been very fortunate to have an orderly market for the most part. If in fact you had an auto liquidation, the money from the losers comes from the winners.

Which benefits the participants not only United States, but globally you need to have these markets. There's a great Doctor Milton Friedman said to me in in 2002, if we did not have futures contracts today, we would need to invent them in order to move forward progress, but that that the way the market works between cash and futures is critically important so the decisions.

Speaker #6: When they listed those on XYZ on hyperliquid, as you know, the way that market works, if in fact they were to have a tip over and the auto liquidation, they've been very fortunate to have an orderly market for the most part.

Terrence Duffy: As the great Dr. Milton Friedman said to me in 2002, "If we did not have futures contracts today, we would need to invent them in order to move forward with progress." The way the market works between cash and futures is critically important. The decisions that people want on perpetuals, it seems to me more like they're trying to create a contract for the speculator. That's not the mission of the Commodity Exchange Act. That's not the definition of it. That's something that I'm very much involved with, as it relates to perpetuals. Your other part about the volume going into some of these products, I assume you're referring to some on silver, some on oil, and so let's talk about that for a second.

Speaker #6: But if in fact you had an auto liquidation, the money from the losers comes from the winners. It's a very difficult proposal for any institutional hedger to use a product such as that where if they're due a dollar and they get 45 cents back because the other side of the trade just got beat up and so that's where they got the money from.

That people want on perpetuals, it seemed to me more of they're trying to create a contract for the speculator. That's not the mission of the commodity Exchange Act that's not the definition of it. So that's something that I am very much involved with.

Terry Duffy: It's a very difficult proposal for any institutional hedger to use a product such as that, where if they're due $1 and they get $0.45 back because the other side of the trade just got beat up, and so that's where they got the money from. I am concerned about some of those rules, and those are done on perpetual basis. I think the agricultural communities, the energy communities, and others are not completely pleased with some of the pricing of those products. I'll let Derek talk about that. What's important, before he mentions it, we have to think about the timing of when those products were listed. You gotta remember, silver went from $50 to 118, I believe, Derek, is that about right, to the high, and then back to 86.

Speaker #6: So I am concerned about some of those rules and those are done on perpetual basis. I think the agricultural communities, the energy communities, and others are not completely pleased with some of the pricing of those products.

As it relates to perpetuals.

Your other part about the volume going into some of these products I assume you're referring to some on silver some on oil and so let's talk about that for a second when they listed those on X Y Z on hyper liquid.

Terrence Duffy: When they listed those on TradeXYZ on Hyperliquid, as you know, the way that market works, if in fact they were to have a tip over in the auto-liquidation, they've been very fortunate to have an orderly market for the most part. If in fact you had an auto-liquidation, the money from the losers comes from the winners. It's a very difficult proposal for any institutional hedger to use a product such as that, where if they're due a dollar and they get 45 cents back because the other side of the trade just got beat up, and so that's where they got the money from. I am concerned about some of those rules, and those are done on perpetual basis. I think the agricultural communities, the energy communities, and others are not completely pleased with some of the pricing of those products.

Speaker #6: But I'll let Derek talk about that. But what's important before he mentions it, we have to think about the timing of when those products were listed.

As you know the way that market works. If in fact, they were to have a tip over and the auto liquidation they've been very fortunate to have an orderly market for the most part but if in fact, you had an auto liquidation the money from the losers.

Speaker #6: You got to remember silver went from 50 bucks to 118, I believe, Derek, is that about right? To a high and then back to 86.

It comes from the winners and it's a very difficult proposal for any institutional hedger. They use our products such as that where if they would do a dollar and they get 45 back because the other side of the trade just got beat up and so that's where they got the money from so I am concerned about some of those rules and those are done on perpetual base.

Speaker #6: Oil went from 50 dollars a barrel for almost four years to north of 100 and then back down to 86. So that was where that activity kind of caught.

Terry Duffy: Oil went from $50 a barrel for almost 4 years to, you know, north of 100 and then back down to 86. That was where that activity kinda caught. Now the question will be: Is that sustainable? I'll let Derek comment on those particular products.

Speaker #6: Now the question will be, is that sustainable? So I'll let Derek comment on those particular products.

Speaker #4: Yeah, I appreciate it, Terry. I think if you looked at the results of this last Q1 and even continuing into Q2 of this year, you're seeing exactly what Terry talked about.

Derek: Yeah. I appreciate it, Terry. I think if you looked at the results of this last Q1 and even continuing into Q2 of this year, you are seeing exactly what Terry talked about. The purpose of futures contracts are to enable hedgers to be able to know that they can identify the forward curve. These products converge to physical at delivery and physical markets, whether it is corn, whether it is livestock, whether it is oil, whether it is gold, all come to physical use. We look at the end user commercial need of these customers. When you look at the growth and record activity in our commodities portfolio as a whole, you will see that every single portion of our client segments grew at double-digit growth in every single group, led by commercials, corporates, banks, buy side, and prop firms.

Derek Sammann: Yeah. I appreciate it, Terry. I think if you looked at the results of this last Q1 and even continuing into Q2 of this year, you are seeing exactly what Terry talked about. The purpose of futures contracts are to enable hedgers to be able to know that they can identify the forward curve. These products converge to physical at delivery and physical markets, whether it is corn, whether it is livestock, whether it is oil, whether it is gold, all come to physical use. We look at the end user commercial need of these customers. When you look at the growth and record activity in our commodities portfolio as a whole, you will see that every single portion of our client segments grew at double-digit growth in every single group, led by commercials, corporates, banks, buy side, and prop firms.

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I think the agricultural communities the energy communities and others are not completely pleased with some of the pricing of those products, but I'll, let Derek talk about that but what is important before he mentioned that we have to think about the timing of when those products were listed.

Speaker #4: The purpose of futures contracts or to enable hedgers to be able to know that they can identify a forward curve, these products then converge to physical at delivery and physical markets, whether it's corn, whether it's livestock, whether it's oil, whether it's gold, all come to physical use.

Terrence Duffy: I'll let Derek talk about that. What's important, before he mentions it, we have to think about the timing of when those products were listed. You got to remember, silver went from $50 to $118, I believe, Derek, is that about right, to the high and then back to $86. Oil went from $50 a barrel for almost four years to north of $100 and then back down to $86. That was where that activity kind of caught. Now, the question will be, is that sustainable? I'll let Derek comment on those particular products.

You got to remember silver went from $50 to 118, I believe Eric is that about right to high and then back to 86.

Speaker #4: So we look at the end user commercial need of these customers. When you look at the growth and record activity in our commodities portfolio as a whole, you'll see that every single portion of our client segments group, we had double-digit growth in every single group led by commercials, corporates, banks, buy-side, and prop firms.

Oil went from $50 a barrel for almost four years to north of 100, and then back down 86, so that was where that activity kind of caught now. The question will be is that sustainable. So I'll, let derrick comment on those particular products. Yeah. I appreciate it Terry I think if you looked at the results.

Speaker #4: So retail is a part of that, but financial customers were following where the end user manages and hedges their underlying risk. And that's in our futures markets.

Derek: Retail is a part of that, but financial customers will follow where the end user manages and hedges their underlying risk, and that's in our futures market.

Derek Sammann: Retail is a part of that, but financial customers will follow where the end user manages and hedges their underlying risk, and that's in our futures market.

Derek: Yeah, I appreciate it, Terry. I think if you looked at the results of this last Q1 and even continuing into Q2 of this year, you're seeing exactly what Terry talked about. The purpose of futures contracts are to enable hedgers to be able to know that they can identify the forward curve. These products then converge to physical at delivery and physical markets, whether it's corn, whether it's livestock, whether it's oil, whether it's gold, all come to physical use. We look at the end user commercial need of these customers. When you look at the growth and record activity in our commodities portfolio as a whole, you'll see that every single portion of our client segments grew at double-digit growth in every single group led by commercials, corporates, banks, buy side, and prop firms.

Derek Sammann: Yeah, I appreciate it, Terry. I think if you looked at the results of this last Q1 and even continuing into Q2 of this year, you're seeing exactly what Terry talked about. The purpose of futures contracts are to enable hedgers to be able to know that they can identify the forward curve. These products then converge to physical at delivery and physical markets, whether it's corn, whether it's livestock, whether it's oil, whether it's gold, all come to physical use. We look at the end user commercial need of these customers. When you look at the growth and record activity in our commodities portfolio as a whole, you'll see that every single portion of our client segments grew at double-digit growth in every single group led by commercials, corporates, banks, buy side, and prop firms.

Of this last Q1, and even continuing into Q2 of this year Youre seeing exactly what Terry talked about the purpose of futures contracts or to enable <unk> to be able to know that they can identify a forward curve. These products, then converged to physical delivery and physical markets, whether its corn, whether its livestock, whether it's oil whether it's gold.

Speaker #6: And so on the first part of your question with the S&P, listing on that, we were not made aware of that even though we own 27% of the index business.

Terry Duffy: On the first part of your question with the S&P listing on that, we were not made aware of that, even though we own 27% of the index business. We were not made aware of that decision. We got made aware once they listed it, where literally several hours before their press release went out. Their press release went out, at which coincided with the opening of that market. We've been engaged with conversations, as you can imagine, with our partners. We both have a deep respect for intellectual property. We've made our points very aggressively on that, and I think they understand that now. We are continuing to work with our partners at S&P to make certain that as we go forward, we're all on the same page.

Speaker #6: We were not made aware of that decision. We got made aware once they listed it, literally several hours before their press release went out, their press release went out, and which coincided with the opening of that market.

I'll come to a physical use so we look at the end user commercial needs of these customers. When you look at the growth and record activity in our commodities portfolio as a whole you'll see that every single portion of our client segments grew mid double digit growth in every single group led by commercial and corporate banks buy side and prop firms so retailers apart.

Speaker #6: We've been engaged with conversations, as you can imagine, with our partners we both have a deep respect for intellectual property. We've made our points very aggressively on that.

Derek: Retail is a part of that, but financial customers will follow where the end user manages and hedges their underlying risk, and that's in our futures markets.

Derek Sammann: Retail is a part of that, but financial customers will follow where the end user manages and hedges their underlying risk, and that's in our futures markets.

Speaker #6: And I think they understand that now. And so we are continuing to work with our partners at S&P to make certain that as we go forward, we're all on the same page.

Of that but financial customers, we're following where the end user manages and hedges there underlying risk and that's in our futures market and so on the first part of your question with the S&P lifting on that.

Terrence Duffy: On the first part of your question with the S&P listing on that, we were not made aware of that, even though we own 27% of the index business. We were not made aware of that decision. We got made aware once they listed it, we're literally several hours before their press release went out. Their press release went out, which coincided with the opening of that market. We've been engaged with conversations, as you can imagine, with our partners. We both have a deep respect for intellectual property. We've made our points very aggressively on that, and I think they understand that now. We are continuing to work with our partners at S&P to make certain that as we go forward, we're all on the same page.

Speaker #5: Great. Very, very helpful. That's it for me.

Patrick Moley: Great. Very, very helpful. That's it for me.

We were not made aware.

Speaker #6: Thanks, Patrick.

Terry Duffy: Thanks, Patrick.

Of that even though we own 27% of the index business. We were not made aware of that decision. We got made aware once they lifted it where they're literally several hours before their press release went out their press release went out at which coincided with the opening of that market. We've been engaged with conversations that you can imagine with our partners.

Speaker #1: The next question in the queue is from Dan Fannon with Jefferies. Your line is now open.

Operator: The next question in the queue is from Dan Fannon with Jefferies. Your line is now open.

Speaker #5: Thanks. Good morning. So Terry wanted to follow up on your comments about the micro equity index option to change. I think you finally you're making to be more financially settled.

Dan Fannon: Thanks. Good morning. Terry, wanted to follow up on your comments about the micro equity index options and change, I think, finally you're making to be more financially settled.

Speaker #5: So just wanted to talk about why now and what you see as the opportunity going forward with that.

Terry Duffy: Yes

Dan Fannon: Just wanted to talk about why now and what you see as the opportunity going forward with that.

We both have a deep respect for intellectual property. We've made our points are very aggressively on that and I think they understand that now and so we are continuing to work with our partners at S&P to make certain that as we go forward. We're all on the same page.

Speaker #6: I'll attempt to chime in, but I will tell you why now is maybe we should have done it a little bit sooner, but why now is because the client base continues to go across multiple different versions of the equity complex, whether it's the larger e-mini whether it's the micro or something smaller.

Terry Duffy: I'll let Tim chime in, but I will tell you why now is, you know, maybe we should have done it a little bit sooner, but why now is because the client base continues to go across multiple different versions of the equity complex, whether it's the larger E-mini, whether it's the micro or something smaller, and how they participate. This client base in the micros seems to be more of a retail focus. They really don't wanna deliver their options into a future where the people that are trading the larger clients do wanna deliver their options into a future. We felt very strongly that the micro contract would make more sense for that constituency. At the same breath, we didn't think it made sense to change all of our equity contracts to deliver into cash settled.

Patrick: Great. Very, very helpful. That's it for me.

[Analyst]: Great. Very, very helpful. That's it for me.

Great very very helpful.

For me.

Terrence Duffy: Thanks, Patrick.

Thanks, Patrick.

Speaker #6: And how they participate, this client base in the micros seems to be more of a retail-focused. They really don't want to deliver their options into a future where the people that are trading the larger clients do want to deliver their options into a future.

Operator: The next question in the queue is from Daniel Fannon with Jefferies. Your line is now open.

Operator: The next question in the queue is from Dan Fannon with Jefferies. Your line is now open.

The next question in the queue is from Dan Fannon with Jefferies. Your line is now open.

Dan Fannon: Thanks. Good morning. Terry, I wanted to follow up on your comments about the Micro E-mini options and the change I think you're finally making to be more financially settled.

Thanks, Good morning, So Terry I wanted to follow up on your comments about the microwave equity index options and change I think you're finally, you are making to.

Speaker #6: So we felt very strongly that the micro contract would make more sense for that constituency. But at the same breath, we didn't think it made sense to change all of our equity contracts to deliver into cash-settled, basically we'll keep them as deliverable into a future.

It'd be more financially settled so just wanted to talk about why now and what you see as the opportunity going forward with that.

Terrence Duffy: Yes.

Dan Fannon: Just wanted to talk about why now and what you see as the opportunity going forward with that.

Terrence Duffy: I'll let Tim chime in, but I will tell you why now is, maybe we should have done it a little bit sooner, but why now is because the client base continues to go across multiple different versions of the equity complex, whether it's the larger E-mini, whether it's the micro or something smaller, and how they participate. This client base in the micros seems to be more of a retail focus. They really don't want to deliver their options into a future where the people that are trading the larger clients do want to deliver their options into a future. We felt very strongly that the micro contract would make more sense for that constituency. At the same breath, we didn't think it made sense to change all of our equity contracts to deliver into cash settled. Basically, we'll keep them as deliverable into a future.

I'll, let Tim chime in but I will tell you why now is you know maybe we should've done it a little bit sooner, but why now is because of that the client base continues to.

Terry Duffy: Basically, we'll keep them as deliverable into a future. Tim, you can add to that.

Speaker #6: But Tim, you can add to that.

Speaker #5: Great. Thanks, Terry. And thanks, Dan. And I think part of it is, as Terry said, CME Group is the comprehensive leader in risk transfer for the S&P 500 and the NASDAQ complexes.

Go across multiple different versions of the equity complex, whether it's the larger E mini.

Derek: Great. Thanks, Terry, and thanks, Dan. You know, I think part of it is, as Terry said, as CME Group is the comprehensive leader in risk transfer for the S&P 500 and the Nasdaq complexes, it's important for us to continue to evolve our products to meet the risk management and market access needs of our customers. That's the feedback that we're receiving when we look at the micro-sized products and how those strategies are deployed to hedge other parts of their either stock portfolios or ETF portfolios, or looking to access the market, that they prefer the financially settled mechanisms where they could have the options expire against the futures daily settlement price, and that is the change we're looking to file.

Tim McCourt: Great. Thanks, Terry, and thanks, Dan. You know, I think part of it is, as Terry said, as CME Group is the comprehensive leader in risk transfer for the S&P 500 and the Nasdaq complexes, it's important for us to continue to evolve our products to meet the risk management and market access needs of our customers. That's the feedback that we're receiving when we look at the micro-sized products and how those strategies are deployed to hedge other parts of their either stock portfolios or ETF portfolios, or looking to access the market, that they prefer the financially settled mechanisms where they could have the options expire against the futures daily settlement price, and that is the change we're looking to file.

Michael or something smaller and how they participate this client base and the micros seems to be more of a retail focus they they really don't want to deliver their options into a future where the people that are trading in the larger clients do want to deliver their options into our future. So we felt very strongly that the micro contract.

Speaker #5: It's important for us to continue to evolve our products to meet the risk management and market access needs of our customers. And that's the feedback that we're receiving when we look at the micro-sized products and how those strategies are deployed to hedge other parts that are either stock portfolios or ETF portfolios or looking to access the market that they prefer the financially settled mechanisms where they could have the options expire against the futures daily settlement price.

Would make more sense for that constituency, but at the same breath. We didn't think it made sense to change all of our equity contracts to deliver into cash settled.

Speaker #5: And that is the change we're looking to file. It will then, as Terry said, be different than the institutional-grade e-mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures which is of benefit to the institutional community and the hedgers out there, particularly when they're looking to access the almost 40 billion dollars per day of capital efficiencies in our equity complex at CME Group.

Derek: It will then, as Terry said, be different than the institutional grade E-mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures, which is of benefit to the institutional community and the hedgers out there, particularly when they're looking to access the almost $40 billion per day of capital efficiencies in our equity complex at CME Group. We've actually seen continued adoption of our E-mini products by clients, where several large buy side clients are also switching some of their structured product strategies to utilize the efficiencies and the benefits of trading futures-based options at CME Group on the S&P 500.

Tim McCourt: It will then, as Terry said, be different than the institutional grade E-mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures, which is of benefit to the institutional community and the hedgers out there, particularly when they're looking to access the almost $40 billion per day of capital efficiencies in our equity complex at CME Group. We've actually seen continued adoption of our E-mini products by clients, where several large buy side clients are also switching some of their structured product strategies to utilize the efficiencies and the benefits of trading futures-based options at CME Group on the S&P 500.

And we will keep them as deliverable into a future, but Tim you can add to that.

Terrence Duffy: Tim, you can add to that.

Derek: Great. Thanks, Terry, and thanks, Dan. I think part of it is, as Terry said, as CME Group is the comprehensive leader in risk transfer for the S&P 500 and the Nasdaq complexes, it's important for us to continue to evolve our products to meet the risk management and market access needs of our customers. That's the feedback that we're receiving when we look at the micro-sized products and how those strategies are deployed to hedge other parts of their either stock portfolios or ETF portfolios, or looking to access the market, that they prefer the financially settled mechanisms where they could have the options expire against the futures' daily settlement price, and that is the change we're looking to file.

Tim McCourt: Great. Thanks, Terry, and thanks, Dan. I think part of it is, as Terry said, as CME Group is the comprehensive leader in risk transfer for the S&P 500 and the Nasdaq complexes, it's important for us to continue to evolve our products to meet the risk management and market access needs of our customers. That's the feedback that we're receiving when we look at the micro-sized products and how those strategies are deployed to hedge other parts of their either stock portfolios or ETF portfolios, or looking to access the market, that they prefer the financially settled mechanisms where they could have the options expire against the futures' daily settlement price, and that is the change we're looking to file.

Thanks, Terry and thanks, Dan.

Part of it as Terry said as CME group is the comprehensive leader in risk transfer for the S&P 500, and the NASDAQ complex as it's important for us to continue to evolve our products to meet the risk management and market access needs of our customers and that's the feedback that we're receiving when we look at the micro sized products and how those strategies are deployed.

Speaker #5: We've actually seen continued adoption of our e-mini products by clients where several large buy-side clients are also switching some of their structure product strategies to utilize the efficiencies and the benefits of trading futures-based options at CME Group on the S&P 500.

To hedge other parts of their either stock portfolios or ETF portfolios or looking to access the market that they prefer the financially settled mechanisms where they can have the options expire against the futures daily settlement price and that is the change we're looking to file. It will then as Terry said would be different than the institutional grade.

Speaker #5: So we think this will further grow the complex as we remove some of the barriers to entry for clients and give them a better tool that serves the risk management needs of their portfolio.

Derek: We think this will further grow the complex as we remove some of the barriers to entry for clients and give them a better tool that serves the risk management needs of their portfolio.

Tim McCourt: We think this will further grow the complex as we remove some of the barriers to entry for clients and give them a better tool that serves the risk management needs of their portfolio.

Derek: It will then, as Terry said, be different than the institutional grade E-mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures, which is of benefit to the institutional community and the hedgers out there, particularly when they're looking to access the almost $40 billion per day of capital efficiencies in our equity complex at CME Group. We've actually seen continued adoption of our E-mini products by clients, where several large buy-side clients are also switching some of their structured product strategies to utilize the efficiencies and the benefits of trading futures-based options at CME Group on the S&P 500. We think this will further grow the complex as we remove some of the barriers to entry for clients and give them a better tool that serves the risk management needs of their portfolio.

Tim McCourt: It will then, as Terry said, be different than the institutional grade E-mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures, which is of benefit to the institutional community and the hedgers out there, particularly when they're looking to access the almost $40 billion per day of capital efficiencies in our equity complex at CME Group. We've actually seen continued adoption of our E-mini products by clients, where several large buy-side clients are also switching some of their structured product strategies to utilize the efficiencies and the benefits of trading futures-based options at CME Group on the S&P 500. We think this will further grow the complex as we remove some of the barriers to entry for clients and give them a better tool that serves the risk management needs of their portfolio.

Speaker #6: And just so you and I think I'm talking out of both sides of my mouth, but in this particular contract, we didn't design it as a financially settled in the micro because it's just for retail or speculation.

E mini offerings and options on those products, which serve a very specific and highly utilized function of the market of delivering the underlying futures, which is a benefit to the institutional community and the hedges out there, particularly when theyre looking to access the almost $40 billion per day of capital efficiencies in our equity complex at CME group we've.

Terry Duffy: Just so you're not thinking I'm talking out of both sides of my mouth, in this particular contract, we didn't design it as a financially settled in the micro because it's just for retail or speculation. It's not. You have to look at the value of the S&P 500 and who uses that contract today. For you historians that may or may not know this, we started with an S&P 500, and then we cut the multiplier to 250. As the contract continues to go up in value, participants, even the large ones, need to trade a smaller contract or they need to trade a bigger contract, depending on what their needs are.

Speaker #6: It's not. You have to look at the value of the S&P 500 and who uses that contract today. For you historians that may or may not know this, we started with an S&P 500.

<unk> seen continued adoption of our E muni products by clients, where several large buy side clients are also switching some of their structure product strategies to utilize the efficiencies and the benefits of trading futures based options at CME group on the S&P 500. So we think this will further grow the complex as we remove some of the barriers to entry for our clients and give.

Speaker #6: And then we cut the multiplier to 250. As the contract continues to go up in value, participants, even the large ones, need to trade a smaller contract or they need to trade a bigger contract depending on what their needs are.

Speaker #6: So we are trying to take these pools of liquidity for the constituents to go across the entire spectrum of CME's equity products and it's basically the decisions are being made for the value of the index itself, not for just the constituents who are trading it.

Terry Duffy: We are trying to take these pools of liquidity for the constituents to go across the entire spectrum of CME's equity products, and it's basically the decisions are being made for the value of the index itself, not for just the constituents who are trading it. I think that's a really important distinction.

I'm a better tool that serves the risk management needs of their portable and just so you are not thinking I'm talking out of both sides of my mouth, but in this particular contract.

Terrence Duffy: Just so you're not thinking I'm talking out of both sides of my mouth, in this particular contract, we didn't design it as financially settled in the micro because it's just for retail or speculation. It's not. You have to look at the value of the S&P 500 and who uses that contract today. For you historians that may or may not know this, we started with an S&P 500, and then we cut the multiplier to 250. As the contract continues to go up in value, participants, even the large ones, need to trade a smaller contract, or they need to trade a bigger contract, depending on what their needs are. We are trying to take these pools of liquidity for the constituents to go across the entire spectrum of CME's equity products.

We didnt design it as a.

Speaker #6: So I think that's a really important distinction.

Financially settled into micro because it's just for retail or speculation is not you have to look at the value of the S&P 500, and who uses that contract today for you historians that may or may not know this we started with an S&P 500, and then we cut the multiplier of the $2 50 as the contract continues to go up.

Speaker #5: Great. Thank you.

Derek: Great. Thank you.

Dan Fannon: Great. Thank you.

Speaker #1: The next question in the queue is from Ken Worthington with JP Morgan. Your line is now open.

Operator: The next question in the queue is from Ken Worthington with J.P. Morgan. Your line is now open.

Operator: The next question in the queue is from Ken Worthington with JPMorgan. Your line is now open.

Speaker #7: Hi. Good morning. Thanks for taking the question. Can you talk a bit about the evolution of WTI and how you see the ongoing growth of US Gulf Oil playing into the dominance of the Cushing Settled product?

Ken Worthington: Hi. Good morning. Thanks for taking the question. Can you talk a bit about the evolution of WTI and how you see the ongoing growth of US Gulf Oil playing into the dominance of the Cushing settled product? Secondly, how do you see the changes in Venezuela and the conflict in Iran changing global supply chains, and how might this feed back into CME energy activity and CME oil market share?

And value participants, even though large ones need to trade a smaller contract or they need to trade a bigger country, depending on what their needs are so we are trying to take these pools of liquidity for the constituents. They go across the entire spectrum of Cme's equity products and is basically the decisions are being made for the value of the index itself.

Speaker #7: And secondly, how do you see the changes in Venezuela and the conflict in Iran changing global supply chains and how might this feed back into CME energy activity and CME oil market share?

Terrence Duffy: It's basically the decisions are being made for the value of the index itself, not for just the constituents who are trading it. I think that's a really important distinction.

Speaker #6: Okay. And that's a really good question. I think a lot of people like to have the answer to that one, especially in the industry for sure.

Terry Duffy: Ken, that's a really good question. I think a lot of people would like to have the answer to that one, especially in the, you know, in the industry for sure. I'll let Derek talk a little bit about the TI because I think it's important. When we get into geopolitical, like what does it mean for Venezuela? I mean, we know what has been said publicly by the administration, but we don't ultimately know what's going to happen. I think we'll stick with what we think on TI right now, Derek.

Not for just the constituents who are trading at so I think that's a really important distinction.

Dan Fannon: Great. Thank you.

Speaker #6: I'll let Derek talk a little bit about the TI because I think it's important. But when we get into geopolitical, what does it mean for Venezuela?

Great. Thank you.

Operator: The next question in the queue is from Kenneth Worthington with JP Morgan. Your line is now open.

Operator: The next question in the queue is from Ken Worthington with JP Morgan. Your line is now open.

And the next question in the queue is from Ken Worthington with JP Morgan. Your line is now open.

Speaker #6: I mean, we know what has been said publicly by the administration. But we don't ultimately know what's going to happen. So I think we'll stick with what we think on TI right now, Derek.

Ken Worthington: Hi. Good morning. Thanks for taking the question. Can you talk a bit about the evolution of WTI and how you see the ongoing growth of US Gulf oil playing into the dominance of the Cushing settled product? Secondly, how do you see the changes in Venezuela and the conflict in Iran changing global supply chains, and how might this feed back into CME energy activity and CME oil market share?

Hi, Good morning, guys. Thanks for taking the question.

Can you talk a bit about the evolution of W. Ti and how you see the ongoing growth of U S. Gulf oil playing into the dominance of the Cushing settled product and secondly, how do you see the changes in Venezuela, and the conflict in Iran, changing global supply chains, and how might this feedback into our <unk>.

Speaker #5: Yeah. I think that's a great question, Ken. It's certainly timely in light of what we've been seeing in terms of restrictions and constrictions of typical supply.

Derek: Yeah. I think that's a great question, Ken. It's certainly timely in light of what we've been seeing in terms of restrictions and constrictions of typical supply. 20% of the crude oil market, as you know, comes from the Middle East, flows out into global network. That has been disrupted. We've been talking for years about the ways in which we have continued to evolve WTI as a global benchmark. Ever since the export ban was lifted in 2014, US-produced WTI and nat gas, in fact, have been flowing out into global markets.

Derek Sammann: Yeah. I think that's a great question, Ken. It's certainly timely in light of what we've been seeing in terms of restrictions and constrictions of typical supply. 20% of the crude oil market, as you know, comes from the Middle East, flows out into global network. That has been disrupted. We've been talking for years about the ways in which we have continued to evolve WTI as a global benchmark. Ever since the export ban was lifted in 2014, US-produced WTI and nat gas, in fact, have been flowing out into global markets.

Speaker #5: 20% of the crude oil market, as you know, comes from the Middle East, flows out into global network. That has been disrupted. We've been talking for years about the ways in which we have continued to evolve WTI as a global benchmark ever since the export ban was lifted in 2014.

<unk> energy activity and CME oil market share.

Terrence Duffy: Ken, that's a really good question. I think a lot of people would like to have the answer to that one, especially in the industry, for sure. I'll let Derek talk a little bit about the TI because I think it's important. When we get into geopolitical, like what does it mean for Venezuela, I mean, we know what has been said publicly by the administration, but we don't ultimately know what's going to happen. I think we'll stick with what we think on TI right now, Derek.

Okay, and that's a really good question I think a lot of people like to have the answer until that one, especially in the in the industry for sure I'll, let Derek talk a little bit about the Ti because I think it is important but when we get into geopolitical like whether that means for Venezuela.

Speaker #5: US produced WTI and nat gas, in fact, have been flowing out into global markets. So I think that to us, this is just another confirmation point of the absolute essential nature of US produced energy products, both WTI and Henry Hub, that is now being produced and exported at record levels outside the US.

Derek: I think that to us, this is just another confirmation point of the absolute essential nature of US-produced energy products, both WTI and Henry Hub, that is now being produced and exported at record levels outside the US, and this is just another marker of adoption globally, of the, what these markets mean and what these products mean to risk management across the board. We have seen outsized growth for 4 years in a row now of global adoption of commercial end user customers in Europe and Asia as both a Russia conflict with Ukraine disrupted supplies. This is another supply disruption, meaning a greater reliance on another provider of last resort, and that is the US right now.

Derek Sammann: I think that to us, this is just another confirmation point of the absolute essential nature of US-produced energy products, both WTI and Henry Hub, that is now being produced and exported at record levels outside the US, and this is just another marker of adoption globally, of the, what these markets mean and what these products mean to risk management across the board. We have seen outsized growth for 4 years in a row now of global adoption of commercial end user customers in Europe and Asia as both a Russia conflict with Ukraine disrupted supplies. This is another supply disruption, meaning a greater reliance on another provider of last resort, and that is the US right now.

Know what has been said publicly by the administration, but we don't ultimately know what is going to happen. So I think we'll stick with what we think on Ti right now Derrick Yeah. I think that's a great question, Ken It's certainly timely in light of what we've been seeing in terms of restrictions in constrictions that typical supply 20% of the crude oil market as you.

Speaker #5: And this is just another marker of adoption globally of the what these markets mean and what these products mean to risk management across the board.

Speaker #5: We have seen outsized growth for four years in a row now of global adoption of commercial and user customers in Europe and Asia as both the Russia conflict with Ukraine disrupted supplies.

Now comes to the Middle East flows out into global network that has been disrupted we've been talking for years about the ways in which we have continued to evolve <unk> as a global benchmark ever since the export ban was lifted in 2014.

Speaker #5: This is another supply disruption, meaning a greater reliance on another provider of last resort. And that is the US right now. As it relates to your specific question on the crude grades, we launched these contracts back in 2018, 2019, fully expecting a global adoption of WTI.

<unk> produced WTO and Nat gas in fact have been flowing out into global markets. So I think that to US. This is just another confirmation of the absolute essential nature of U S produced energy products, both <unk> and Henry hub that is now being produced and exported at record levels outside the U S.

Derek: As it relates to your specific question on the crude grades, you know, we launched these contracts back in 2018, 2019, fully expecting a global adoption of WTI. When you have a physical contract that delivers in Cushing, as we see record amounts flowing out into the US, we needed to provide a risk management tool to get physical and Cushing down to the Gulf Coast to enter the export market. I think what you're seeing in the record volume and open interest in our crude grade contracts, it's really solidifying WTI as a dependable supplier of oil to the world. We think that continues to reinforce WTI's importance globally. You look at the dependability of physical deliveries. We continue to dependably deliver those barrels month after month.

Derek Sammann: As it relates to your specific question on the crude grades, you know, we launched these contracts back in 2018, 2019, fully expecting a global adoption of WTI. When you have a physical contract that delivers in Cushing, as we see record amounts flowing out into the US, we needed to provide a risk management tool to get physical and Cushing down to the Gulf Coast to enter the export market. I think what you're seeing in the record volume and open interest in our crude grade contracts, it's really solidifying WTI as a dependable supplier of oil to the world. We think that continues to reinforce WTI's importance globally. You look at the dependability of physical deliveries. We continue to dependably deliver those barrels month after month.

Speaker #5: When you have a physical contract that delivers in Cushing as we see record amounts flowing out into the US, we needed to provide a risk management tool to get physical in Cushing down to the Gulf Coast to enter the export market.

Derek: This is just another marker of adoption globally of what these markets mean and what these products mean to risk management across the board. We have seen outsized growth for four years in a row now of global adoption of commercial end user customers in Europe and Asia as both the Russia conflict with Ukraine, disruptive supplies. This is another supply disruption, meaning a greater reliance on another provider of last resort, and that is the US right now. As it relates to your specific question on the crude grades, we launched these contracts back in 2018, 2019, fully expecting a global adoption of WTI. When you have a physical contract that delivers in Cushing, as we see record amounts flowing out into the US, we needed to provide a risk management tool to get physical in Cushing down to the Gulf Coast to enter the export market.

Derek Sammann: This is just another marker of adoption globally of what these markets mean and what these products mean to risk management across the board. We have seen outsized growth for four years in a row now of global adoption of commercial end user customers in Europe and Asia as both the Russia conflict with Ukraine, disruptive supplies. This is another supply disruption, meaning a greater reliance on another provider of last resort, and that is the US right now. As it relates to your specific question on the crude grades, we launched these contracts back in 2018, 2019, fully expecting a global adoption of WTI. When you have a physical contract that delivers in Cushing, as we see record amounts flowing out into the US, we needed to provide a risk management tool to get physical in Cushing down to the Gulf Coast to enter the export market.

And this is just another marker of adoption globally.

Speaker #5: I think what you're seeing in the record volume and open interest in our crude gate contracts, it's really solidifying WTI as a dependable supplier of oil to the world.

What these markets mean and what these products means of risk management across the board we have seen outsized growth for four years in a row now of global adoption of commercial end user customers in Europe, and Asia as both the Russia conflict with Ukraine disruptive supplies. This is another supply disruption, meaning a greater reliance on another provider of last resort and that is the.

Speaker #5: We think that continues to reinforce WTI's importance globally. And you look at the dependability of physical deliveries, we continue to dependably deliver those barrels month after month.

Speaker #5: In fact, our GME, our stake in the GME Global Mercantile Exchange in Dubai, which delivers the Omadi Sour Crude contract, also physically delivered outside the Strait of Hormuz, has been uninterrupted in delivering 15 to 20 million barrels a day as well.

Derek: In fact, our, our GME, our stake in the GME, Gulf Mercantile Exchange, in Dubai, which delivers the Oman sour crude contract, also physically delivered, outside the Strait of Hormuz, has been uninterrupted in delivering 15 to 20 million barrels a day as well. The market needs to find dependability of supply. They found that in WTI. It's a reason why we're exporting not only record amounts of WTI and Henry Hub, but also RBOB gasoline and HO diesel contract as well. It confirms the importance of having global products for global customers, that we are the dependable provider and we continue to ramp up exports, and that further solidifies US energy products in the portfolios of global customers.

Derek Sammann: In fact, our, our GME, our stake in the GME, Gulf Mercantile Exchange, in Dubai, which delivers the Oman sour crude contract, also physically delivered, outside the Strait of Hormuz, has been uninterrupted in delivering 15 to 20 million barrels a day as well. The market needs to find dependability of supply. They found that in WTI. It's a reason why we're exporting not only record amounts of WTI and Henry Hub, but also RBOB gasoline and HO diesel contract as well. It confirms the importance of having global products for global customers, that we are the dependable provider and we continue to ramp up exports, and that further solidifies US energy products in the portfolios of global customers.

The us right now.

As it relates to your specific question on the crude grades we launched these contracts back in 2018 2019 fully expecting a global adoption of <unk>. When you have a physical contracts that delivers in Cushing as we see record amounts flowing out into the U S. We needed to provide a risk management tool to get physical and Cushing down to the Gulf coast to enter.

Speaker #5: So the market needs to find dependability of supply. They've found that in WTI. That's the reason why we're exporting not only record amounts of WTI and Henry Hub, but also our Bob gasoline and HOR diesel contract as well.

The export market.

Derek: I think what you're seeing in the record volume and open interest in our crude grade contracts, it's really solidifying WTI as a dependable supplier of oil to the world. We think that continues to reinforce WTI's importance globally. You look at the dependability of physical deliveries. We continue to dependably deliver those barrels month after month. In fact, our GME, our stake in the GME, Gulf Mercantile Exchange, in Dubai, which delivers the Oman Crude Oil contract, also physically delivered outside the Strait of Hormuz, has been uninterrupted in delivering 15 to 20 million barrels a day as well. The market needs to find dependability of supply. They've found that in WTI. It's a reason why we're exporting not only record amounts of WTI and Henry Hub, but also RBOB gasoline, and HO diesel contract as well.

Derek Sammann: I think what you're seeing in the record volume and open interest in our crude grade contracts, it's really solidifying WTI as a dependable supplier of oil to the world. We think that continues to reinforce WTI's importance globally. You look at the dependability of physical deliveries. We continue to dependably deliver those barrels month after month. In fact, our GME, our stake in the GME, Gulf Mercantile Exchange, in Dubai, which delivers the Oman Crude Oil contract, also physically delivered outside the Strait of Hormuz, has been uninterrupted in delivering 15 to 20 million barrels a day as well. The market needs to find dependability of supply. They've found that in WTI. It's a reason why we're exporting not only record amounts of WTI and Henry Hub, but also RBOB gasoline, and HO diesel contract as well.

What youre seeing in the record volume and open interest in our crude get contracts, that's really solidifying W. Ti as a dependable supplier of oil to the world. We think that continues to reinforce WTS importance globally and.

Speaker #5: So it confirms the importance of having global products for global customers that we are the dependable provider and we continue to ramp up exports.

Speaker #5: And that further solidifies US energy products in the portfolios of global customers.

And you look at the dependability of physical deliveries.

We continue to Dependably deliver those barrels month after month in fact R. R. G E R stake in the <unk> global brick until exchange.

Speaker #6: And Ken, I don't want to be dismissive, so I want to go back to the beginning of your question on Venezuela. Can you ask that question now separately so maybe I can address it, but I might not be able to?

Terry Duffy: Ken, I don't want to be dismissive, so I want to go back to the beginning of your question on Venezuela. Can you ask that question now separately? Maybe I can address it, but I might not be able to.

In Dubai, which delivers the Omani sour crude contract also physically delivered outside the Strait of Hormuz has been uninterrupted in delivering 15 to 20 million barrels a day as well so the market needs to find dependability of supply. They found that in <unk>. That's the reason why we're exploring not only record amounts of W. Ti and.

Speaker #5: So it was just about how the changes in Venezuela impact global supply chains and what it means for CME activity and share.

Ken Worthington: It was just about, you know, how the changes in Venezuela impact global supply chains and what it means for CME, you know, activity and share.

Speaker #6: So I think for not quite sure what that's ultimately going to mean with Venezuela. I think that the verdict is still out about how that country is going to run as everybody knows I think that their production got run way down.

Terry Duffy: Not quite sure what that's ultimately going to mean with Venezuela. I think that the verdict is still out about how that country is going to run. As everybody knows, I think that their production got, you know, run way down. Their infrastructure in Venezuela was not doing what it was at peak. Those are all issues that they need to have addressed going forward. Then there's going to be a lot of politics and other people trying to deal with that particular issue. As far as our share goes, I think what is important, and Derek touched on it, WTI is no different than Brent, another one. These are global markets.

Henry hub, but also our Bob gasoline and HR diesel contract as well so it confirms the importance of adding global products for global customers that we are a dependable provider and we continue to ramp up exports and that further solidifies U S energy products in the portfolio So global customers.

Derek: It confirms the importance of having global products for global customers, that we are the dependable provider and we continue to ramp up exports, and that further solidifies US energy products in the portfolios of global customers.

Derek Sammann: It confirms the importance of having global products for global customers, that we are the dependable provider and we continue to ramp up exports, and that further solidifies US energy products in the portfolios of global customers.

Speaker #6: Their infrastructure in Venezuela was not doing what it was at peak. So those are all issues that they need to have addressed going forward.

Terrence Duffy: Ken, I don't want to be dismissive, so I want to go back to the beginning of your question on Venezuela. Can you ask that question now separately so maybe I can address it, but I might not be able to.

Speaker #6: And then there's going to be a lot of politics and other people trying to deal with that particular issue. So as far as our share goes, I think what is important, and Derek touched on it, WTI is no different than Brent and other ones.

I don't want to be dismissive. So I wanted to go back to the beginning of your question on Venezuela can you ask that question now separately. So maybe I can address it but I might not be able to.

Ken Worthington: It was just about how the changes in Venezuela impact global supply chains and what it means for CME activity and share.

So it was just about.

Speaker #6: These are global markets. Whether it's produced in the United States or it's produced in Saudi Arabia or UAE or Qatar, these are global markets and people are going to sell to the highest bidder.

Terry Duffy: Whether it's produced in the United States or it's produced in Saudi Arabia or UAE or Qatar, these are global markets and people are going to sell to the highest bidder, and that's just how the oil market has worked. I think sometimes people here in the United States think that we have this massive supply of WTI, so our gas prices should be a lot lower. You know, our producers sell all over the world, and that's the way this market is. It's global. The good news is, I think what Derek's saying is the benchmark of WTI is getting a much higher visibility, and I think that will continue, which will bode well for CME's risk management goals. Derek?

The changes in Venezuela.

<unk> global supply chains, and what it means for for for CME.

Speaker #6: And that's just how the oil market has worked. So I think sometimes people here in the United States think that we have this massive supply of WTI, so our gas prices should be a lot lower.

Activity in share.

Terrence Duffy: I think I'm not quite sure what that's ultimately going to mean with Venezuela. I think that the verdict is still out about how that country is going to run. As everybody knows, I think that their production got run way down. Their infrastructure in Venezuela was not doing what it was at peak. Those are all issues that they need to have addressed going forward. Then there's going to be a lot of politics and other people trying to deal with that particular issue. As far as our share goes, I think what is important, and Derek touched on it, WTI is no different than Brent, another month. These are global markets.

So I think for.

I'm not quite sure what that's ultimately going to mean with Venezuela, I think that the verdict is still out about how that country is going to run as everybody knows I think that their production got runway down their infrastructure in Venezuela was not doing what it was at peak. So those are all issues that they need to have addressed going forward and then there's going to be a lot of politics and.

Speaker #6: Our producers sell all over the world. And that's the way this market is. It's global, but the good news is I think what Derek's saying is the benchmark of WTI is getting a much higher visibility.

Speaker #6: And I think that will continue which will bode well for CME's risk management goals. Derek?

Speaker #5: Yeah. I think one little last piece that's worth noting on the share piece here is that Venezuelan crude is extremely heavy. It's going to take a long time to rebuild the infrastructure in Venezuela, import that, and then actually resource some of the refineries in the US to adopt that.

Derek: I think one little last piece that's worth noting on the share piece here is that Venezuelan crude is extremely heavily. It's going to take a long time to rebuild the infrastructure in Venezuela, import that, and then actually retool some of the refineries in the US to adopt that. We think that's a term impact. If you look at the forward curve of the oil market, you'll see we're in backwardation, lower prices. Farther out is expecting more US flow in. The last point I want to note is on the share piece of that. I think if you've seen record amounts of activity in global energy markets, we have seen share increases back in CME WTI north of 79%, 80%.

Derek Sammann: I think one little last piece that's worth noting on the share piece here is that Venezuelan crude is extremely heavily. It's going to take a long time to rebuild the infrastructure in Venezuela, import that, and then actually retool some of the refineries in the US to adopt that. We think that's a term impact. If you look at the forward curve of the oil market, you'll see we're in backwardation, lower prices. Farther out is expecting more US flow in. The last point I want to note is on the share piece of that. I think if you've seen record amounts of activity in global energy markets, we have seen share increases back in CME WTI north of 79%, 80%.

There are people trying to deal with that particular issue so as far as our share goes I think what is important and Derek touched on <unk> is no different than Brent and another one is a global markets whether its produced in the United States, where it's produced in Saudi Arabia or UAE. Our guitar. These are global markets and people are going to sell to the highest bidder and thats just how the oil market has worked.

Terrence Duffy: Whether it's produced in the United States or it's produced in Saudi Arabia or UAE or Qatar, these are global markets and people are going to sell to the highest bidder, and that's just how the oil market has worked. I think sometimes people here in the United States think that we have this massive supply of WTI, so our gas prices should be a lot lower. Our producers sell all over the world, and that's the way this market is. It's global. The good news is, I think what Derek's saying is the benchmark of WTI is getting a much higher visibility, and I think that will continue, which will bode well for CME's risk management goals. Derek?

Speaker #5: So we think that's a term impact. If you look at the forward curve of the oil market, you'll see we're in backwardation, lower prices, farther out is expecting more US flow in.

So I think sometimes people here in the United States I think that we have this massive supply O. W. T. I saw our gas prices should be a lot lower.

Speaker #5: The last point I want to note is on the share piece of that. I think if you've seen record amounts of activity in global energy markets, we have seen share increases back in CME WTI.

Our produce or sell all over the world and that's the way. This market is it's global but the good news is I think what Theyre, saying is the benchmark of WTS is getting a much higher visibility and I think that will continue which will bode well for CME is rich Mack.

Speaker #5: North of 79, 80 percent. And that just confirmation that when markets are going through times of undue stress, market retrenches to core liquidity on the home exchange, we've seen that in WTI futures and options over this last three to four months.

Derek: That's just confirmation that when markets are going through times of undue stress, market retrenches to core liquidity on the home exchange. We've seen that in WTI futures and options over this last three to four months.

Derek Sammann: That's just confirmation that when markets are going through times of undue stress, market retrenches to core liquidity on the home exchange. We've seen that in WTI futures and options over this last three to four months.

Derek: I think one little last piece that's worth noting on the share piece here is that Venezuelan crude is extremely heavy. It's going to take a long time to rebuild the infrastructure in Venezuela, import that, and then actually retool some of the refineries in the US to adopt that. We think that's a long-term impact. If you look at the forward curve of the oil market, you'll see we're in backwardation, lower prices farther out is expecting more US flow in. The last point I want to note is on the share piece of that. I think if you've seen record amounts of activity in global energy markets, we have seen share increases back in CME WTI north of 79%, 80%. That's just confirmation that when markets are going through times of undue stress, market retrenches to core liquidity on the home exchange.

Derek Sammann: I think one little last piece that's worth noting on the share piece here is that Venezuelan crude is extremely heavy. It's going to take a long time to rebuild the infrastructure in Venezuela, import that, and then actually retool some of the refineries in the US to adopt that. We think that's a long-term impact. If you look at the forward curve of the oil market, you'll see we're in backwardation, lower prices farther out is expecting more US flow in. The last point I want to note is on the share piece of that. I think if you've seen record amounts of activity in global energy markets, we have seen share increases back in CME WTI north of 79%, 80%. That's just confirmation that when markets are going through times of undue stress, market retrenches to core liquidity on the home exchange.

I think one little last piece, that's worth noting on the share piece here is that our Venezuelan crude is extremely heavily it's going to take a long time to rebuild the infrastructure in Venezuela import that and then actually resource some of the refineries in the U S to adopt that so we think it's one of them. We think that's a term impact if you look at the forward curve of the oil market Youll see were in backwardation lower prices.

Speaker #6: Thanks, Ken. Appreciate it, bud.

Terry Duffy: Thanks, Ken. Appreciate it, bud.

Speaker #7: Thank you.

Ken Worthington: Thank you.

Speaker #1: And the next question is from Ben Budish with Barclays. Your line is open.

Operator: The next question is from Ben Budish with Barclays. Your line is open.

Speaker #8: Hi. Good morning and thank you for taking the question. I wanted to maybe start with market data. It looked like this quarter's recurring revenue growth was the fastest.

Ben Budish: Hi, good morning, and thank you for taking the question. Wanted to maybe start with market data. It looked like this quarter's recurring revenue growth was the fastest I think you've seen in several years. I'm just curious if there's anything you can share there. You know, to what extent are these you know, co-contracts volume-based? To what extent do these come from, you know, new, you know, FCMs kind of joining the platform? How sustainable do you think this growth is over the near term?

Speaker #8: I think you've seen in several years. I'm just curious if there's anything you can share there. To what extent are these contracts volume-based? To what extent do these come from new FCMs kind of joining the platform?

Rather I was expecting more U S slow and the last point I want to note is on the share piece of that I think if you've seen record amounts of activity in global energy markets. We have seen share increases back in C. N E. W. Ti north of 79% to 80% and that's just confirmation that when markets are going.

Speaker #8: And how sustainable do you think this growth is over the near term?

Speaker #6: Thanks, Ben. We'll turn it over to Julie Winkler who heads up this area for CME. Jill?

Terry Duffy: Thanks, Ben. We'll turn it over to Julie Winkler, who heads up this area for CME. Julie?

Going through times of undue stress market retrenched, a core liquidity on the home exchange, we've seen that <unk> futures and options over this last three to four months.

Speaker #9: Thanks for the question, Ben. Yeah. It was a great quarter. We had record 224 million in revenue. So we were up 15 percent from Q1 of 2025.

Derek: We've seen that in WTI futures and options over this last 3 to 4 months.

Derek Sammann: We've seen that in WTI futures and options over this last 3 to 4 months.

Julie Winkler: Thanks for the question, Ben. Yeah, it was a great quarter. We had, you know, record $224 million in revenue. We are up 15% from Q1 of 2025. I'd say one of the biggest shifts that we've seen is really a surge in the simulated trading environment. What's happening there is really strong growth, and I would say maturity among these platforms. These environments are really allowing new traders access to our market data. They're learning how futures products work, and they're taking advantage of the educational resources provided within these platforms, and really using it as part of the customer journey to become successful, new, active retail traders.

Terrence Duffy: Thanks, Ken. Appreciate it, bud.

Thanks, Ken I appreciate that thank you.

Ken Worthington: Thank you.

Operator: The next question is from Benjamin Budish with Barclays. Your line is open.

Operator: The next question is from Ben Budish with Barclays. Your line is open.

Speaker #9: And I'd say one of the biggest shifts that we've seen is really a surge in the simulated trading environment. So what's happening there is really strong growth.

And the next question is from Ben <unk> with Barclays. Your line is open hi.

Ben Budish: Hi, good morning, and thank you for taking the question. I wanted to maybe start with market data. It looked like this quarter's recurring revenue growth was the fastest I think you've seen in several years. I'm just curious if there's anything you can share there. To what extent are these contracts volume-based? To what extent do these come from new FCMs kind of joining the platform? And how sustainable do you think this growth is over the near term?

Hi, Good morning, and thank you for taking the question I wanted to maybe start with market data. It looks like this quarters recurring revenue growth was the fastest I think you've seen in several years I'm. Just curious if there's anything you can share there you know to what extent are these.

Speaker #9: And I would say maturity among these platforms. And so these environments are really allowing new traders access to our market data. They're learning how futures products work.

Contracts volume base to an extent of these from new Mcm's kind of joining the platform and how sustainable do you think this growth is over the near term.

Speaker #9: And they're taking advantage of the educational resources provided within these platforms. And really using it as part of the customer journey becomes successful new active retail traders.

Terrence Duffy: Thanks, Ben. We'll turn it over to Julie Winkler, who heads up this area for CME. Jill?

Terrence Duffy: Thanks, Ben. We'll turn it over to Julie Winkler, who heads up this area for CME. Jule?

Thanks, Ben we'll turn it over to Julie Winkler, who heads up this area for CMA Jill Thanks.

Julie Winkler: Thanks for the question, Ben. Yeah, it was a great quarter. We had record $224 million in revenue. We are up 15% from Q1 of 2025. I'd say one of the biggest shifts that we've seen is really a surge in the simulated trading environment. What's happening there is really strong growth, and I would say maturity among these platforms. These environments are really allowing new traders access to our market data. They're learning how futures products work, and they're taking advantage of the educational resources provided within these platforms and really using it as part of the customer journey to become successful, new, active retail traders.

Speaker #9: And so we've seen very strong year-over-year growth in these participants utilizing these SIM environments to begin their trading journey in futures. That we believe is really going to be additive over the long term to the retail ecosystems.

Thanks for the question Ben Yes, it was a great quarter, we had a record $224 million in revenue. So we were up 15% from Q1 of 2025 and I would say one of the biggest shifts that we've seen is really a surge in the stimulated trading environment.

Julie Winkler: We've seen very strong year-over-year growth in these participants utilizing these SIM environments to begin their trading journey in futures, that we believe is really gonna be additive over the long term to the retail ecosystem. SIM participation was up significantly, that is really kind of driving that retail or non-professional participation in our market data business. You know, we continue to make policy changes, right, in thinking about data feed licensing and how that all needs to work. That has contributed to some of that recurring revenue growth that you're seeing. Lastly, you know, subscriber growth has continued on the professional side as well. You know, we're up about 1% from Q4 and up about 2.45% from the number of professional subscribers we had a year ago.

Speaker #9: So SIM participation was up significantly. And so that is really kind of driving that retail or non-professional participation in our market data business. We've also made we continue to make policy changes, right?

What's happening there is really strong growth and I would say maturity. Among these platforms and so these environments are really allowing new traders access to our market data they're learning how features products work and Theyre, taking advantage of the educational resources provided within these platforms.

Speaker #9: And thinking about data feed licensing and how that all needs to work. That is contributed to some of that recurring revenue growth that you're seeing.

And really using it as part of the customer journey to become successful new active retail traders and so we've seen very strong year over year growth in these participants utilizing these sim environment to begin their trading journey in futures.

Speaker #9: And then lastly, subscriber growth has continued on the professional side as well. We were up about 1 percent from Q4 and up about 2.45 percent from the number of professional subscribers we had a year ago.

Julie Winkler: We've seen very strong year-over-year growth in these participants utilizing these sim environments to begin their trading journey in futures that we believe is really going to be additive over the long term to the retail ecosystem. Sim participation was up significantly, and that is really kind of driving that retail or non-professional participation in our market data business. We continue to make policy changes, right, in thinking about data feed licensing and how that all needs to work. That has contributed to some of that recurring revenue growth that you're seeing. Lastly, subscriber growth has continued on the professional side as well. We're up about 1% from Q4 and up about 2.45% from the number of professional subscribers we had a year ago. I'd say it's a number of fronts. A lot of this is relatively sticky revenue in that sense.

Speaker #9: So I'd say it's a number of fronts. A lot of this is relatively sticky revenue in that sense. And we continue to work with our customers to ensure that our benchmark data is provided and they're getting the data in the way that they want it.

That we believe is really going to be additive over the long term to the retail ecosystem well San participation was up significantly and so that is really kind of driving that retail or nonprofessional participation in our market data business. We've also made we continue to make policy changes right.

Julie Winkler: You know, I'd say it's a number of fronts. A lot of this is, you know, relatively sticky revenue in that sense. You know, we continue to work with our customers to ensure that our benchmark data is provided, and they're getting the data in the way that they want it.

Speaker #9: Yeah. If I could just reinforce a little bit of what Julie said. I mean, I think what we're really pleased with is it's kind of broad-based growth.

Lynne Fitzpatrick: Yeah, if I could just reinforce a little bit of what Julie said. I mean, I think what we're really pleased with is this kind of broad-based growth. We're seeing that subscriber growth. We're seeing the new product growth, as well as some of the changes just with pricing. This is really, really healthy ecosystem that we're seeing across the market data business.

Thinking about data feed licensing and how that all needs to work on.

Speaker #9: So we're seeing that subscriber growth. We're seeing the new product growth as well as some of the changes just with pricing. But this is really healthy ecosystem that we're seeing across the market data business.

That has contributed to some of that recurring revenue growth that you're seeing and then lastly subscriber growth has continued on the professional side as well.

Speaker #8: All right. All very helpful. Thank you. Maybe just a follow-up, maybe sticking with the retail theme. You mentioned in the earnings commentary that on the prediction market side, you've now seen it looks like about 15 percent of volumes are kind of markets related.

We are up about 1% from Q4 and up about 245% from the number of professional subscribers, we had a year ago.

Ben Budish: All right. All very helpful. Thank you. Maybe just a follow-up, maybe sticking with the retail theme. You know, you mentioned in the earnings commentary that on the prediction market side, you've now seen it looks like about 15% of volumes are kind of markets related. Curious if there's any further details you can share. You know, if you have any visibility, you know, what types of customers are trading those contracts rather than sports? I would imagine all this is happening within, you know, your two current FCMs. Just curious what, you know, that customer base looks like. Maybe any color you can share in terms of, you know, the pipeline of potential additional FCMs would be helpful. Thank you.

You know I'd say, it's a number of fronts a lot of this is.

Speaker #8: So curious if there's any further details you can share what if you have any visibility, what types of customers are trading those contracts rather than sports?

Relatively sticky revenue in that sense, and we continue to work with our customers to ensure that our benchmark data is provided and theyre getting the data in the way that they want it.

Julie Winkler: We continue to work with our customers to ensure that our benchmark data is provided and they're getting the data in the way that they want it.

Speaker #8: I would imagine all of this is happening within your two current FCMs. But just curious what that customer base looks like. And maybe any color you can share in terms of the pipeline of potential additional FCMs would be helpful.

Lynne Fitzpatrick: Yeah, if I could just reinforce a little bit of what Julie said. I think what we're really pleased with is this kind of broad-based growth. So we're seeing that subscriber growth. We're seeing the new product growth as well as some of the changes just with pricing. This is really healthy ecosystem that we're seeing across the market data business.

If I could.

If I could just reinforced that a little bit of what Julie said I mean, I think what we're really pleased with is it kind of broad based growth that we're seeing that subscriber growth, we're seeing the new products growth as well as some of the changes just with pricing, but this is really really.

Speaker #8: Thank you.

Speaker #6: Yeah. Thanks, Ben. Tim, you want to address that?

Terry Duffy: Yeah, thanks, Ben. Tim, you wanna address that?

Speaker #10: Yeah. Thanks, Ben. So when we went live with our prediction markets and event contracts offering back in December, we've seen strong growth both in terms of adoption and volume where we've recently surpassed the 220 million contract mark.

Derek: Thanks, Ben. When we went live with our prediction markets and event contracts offering back in December, we've seen strong growth, both in terms of adoption and volume, where we've recently surpassed the 220 million contract mark. When we look at the participation across those contracts, we started a marketing effort in the middle of March with our partners at FanDuel. Since then, the actual participation or the distribution of volume towards the markets-based contracts across equity, crypto, energy, and metals has actually exceeded 30%. That's a shift that we're pleased with, and I think it speaks to the attractiveness of the offering, where we're looking at attracting these next-generation traders to our markets.

Really healthy ecosystem that we're seeing across the market data business.

Tim McCourt: Thanks, Ben. When we went live with our prediction markets and event contracts offering back in December, we've seen strong growth, both in terms of adoption and volume, where we've recently surpassed the 220 million contract mark. When we look at the participation across those contracts, we started a marketing effort in the middle of March with our partners at FanDuel. Since then, the actual participation or the distribution of volume towards the markets-based contracts across equity, crypto, energy, and metals has actually exceeded 30%. That's a shift that we're pleased with, and I think it speaks to the attractiveness of the offering, where we're looking at attracting these next-generation traders to our markets.

Ben Budish: All right. All very helpful. Thank you. Maybe just a follow-up, maybe sticking with the retail theme. You mentioned in the earnings commentary that on the prediction market side, you've now seen, it looks like about 15% of volumes are kind of markets related. So curious if there's any further details you can share. If you have any visibility, what types of customers are trading those contracts rather than sports? I would imagine all this is happening within your two current FCMs, but just curious what that customer base looks like. Maybe any color you can share in terms of the pipeline of potential additional FCMs would be helpful. Thank you.

All very helpful. Thank you, maybe just a follow up maybe sticking with the retail theme.

You mentioned in the earnings commentary that on the prediction market side, you've now seen it looks like about 15% our volumes are kind of market related. So I'm curious if there's any further details you can share what did you have any visibility into what types of customers, who are treating those contracts rather than sports I would imagine all of this is happening within your two current <unk>.

Speaker #10: And then when we look at the participation across those contracts, we started a marketing effort in the middle of March with our partners at FanDuel.

Speaker #10: And since then, the actual participation or the distribution of volume towards the markets-based contracts across equity, crypto, energy, and metals has actually exceeded 30 percent.

But just curious what that customer looks customer base looks like.

And maybe any color you can share in terms of the pipeline of potential additional FC EMS would be helpful. Thank you.

Speaker #10: That's a shift that we're pleased with. And I think it speaks to the attractiveness of the offering where when we're looking at attracting these next-generation traders to our markets, they're coming in through the apps, through our FCM partners.

Terrence Duffy: Thanks, Ben. Tim, you want to address that?

Okay. Thanks, Ben Tim you want to address that.

Derek: Yeah. Thanks, Ben. When we went live with our prediction markets and event contracts offering back in December, we've seen strong growth both in terms of adoption and volume where we've recently surpassed the 220 million contract mark. When we look at the participation contracts, we started a marketing effort in the middle of March with our partners at FanDuel, and since then, the actual participation or the distribution of volume towards the markets-based contracts across equity, crypto, energy, and metals has actually exceeded 30%. That's a shift that we're pleased with, and I think it speaks to the attractiveness of the offering, where we're looking at attracting these next-generation traders to our markets. They're coming in through the apps, through our FCM partners, and they're trading all types of the event contracts, both sports and the markets-based contracts.

Tim McCourt: Yeah. Thanks, Ben. When we went live with our prediction markets and event contracts offering back in December, we've seen strong growth both in terms of adoption and volume where we've recently surpassed the 220 million contract mark. When we look at the participation contracts, we started a marketing effort in the middle of March with our partners at FanDuel, and since then, the actual participation or the distribution of volume towards the markets-based contracts across equity, crypto, energy, and metals has actually exceeded 30%. That's a shift that we're pleased with, and I think it speaks to the attractiveness of the offering, where we're looking at attracting these next-generation traders to our markets. They're coming in through the apps, through our FCM partners, and they're trading all types of the event contracts, both sports and the markets-based contracts.

Yeah. Thanks, Ben So when we went live with our prediction markets and a bank contracts offering back into <unk>.

Derek: They're coming in through the apps, through our FCM partners, and they're trading all types of the event contracts, both sports and the markets-based contracts. That's something I think that reinforces the value prop of CME, that we have some of the world's leading benchmark products at CME Group, and now we're making them more approachable and more accessible to the individual and next-generation trader through the fully funded or fully collateralized event contracts and prediction markets offering at CME. I think the other thing that we're pleased to see is since December, we've had over 150,000 new accounts trade at CME Group in these products, which is, that's off to a fantastic start.

Tim McCourt: They're coming in through the apps, through our FCM partners, and they're trading all types of the event contracts, both sports and the markets-based contracts. That's something I think that reinforces the value prop of CME, that we have some of the world's leading benchmark products at CME Group, and now we're making them more approachable and more accessible to the individual and next-generation trader through the fully funded or fully collateralized event contracts and prediction markets offering at CME. I think the other thing that we're pleased to see is since December, we've had over 150,000 new accounts trade at CME Group in these products, which is, that's off to a fantastic start.

Speaker #10: And they're trading all types of the event contracts, both sports and the markets-based contracts. And that's something I think that reinforces the value prop of CME that we have some of the world's leading benchmark products at CME Group.

Okay.

$20 million contract Mark and then when we look at the participation.

Speaker #10: And now we're making them more approachable and more accessible to individual and next-generation traders through the fully funded or fully collateralized event contracts and prediction markets offering at CME.

Okay.

Tracts, we started a marketing effort in the middle of March with our partners at <unk> and since then the actual participation or the distribution of volume towards the market space contracts across equity crypto energy and metals has actually exceeded 30%.

Speaker #10: I think the other thing that we're pleased to see is since December, we've had over 150,000 new accounts trade at CME Group in these products, which is off to a fantastic start.

Speaker #10: We're continuing to work with our partners that are currently trading. And we have a pipeline of FCMs we're still working to get onboarded and offer these products to their end users.

Derek: We're continuing to work with our partners that are currently trading, and we have a pipeline of FCMs we're still working to get on board and offer these products to their end users. Optimistic about the future, but a first few good months here at CME Group in our prediction market offering.

Tim McCourt: We're continuing to work with our partners that are currently trading, and we have a pipeline of FCMs we're still working to get on board and offer these products to their end users. Optimistic about the future, but a first few good months here at CME Group in our prediction market offering.

A shift that we're pleased with and I think it speaks to the attractiveness of the offering where we're looking at attracting these next generation traders to our markets. They are coming in through the apps through our MCM partners and Theyre trading all types of event contracts, both sports and the market's based contracts and Thats something I think that reinforces the value.

Speaker #10: So optimistic about the future, but a first few good months here at CME Group in our prediction market offering.

Speaker #6: So Ben, just to emphasize a little something. When we originally negotiated this deal with FanDuel, our goal and objective was it had nothing to do with sports.

Terry Duffy: Ben, just to emphasize a little something. When we originally negotiated this deal with FanDuel. Our goal and objective was, it had nothing to do with sports. Our goal and objective was to do with markets and distribution, and that is exactly what we're starting to see happen. Even though it's very, very early innings, to say the least, it is, for baseball season, Tim is absolutely right. What's going on here, and that's exactly what we were hoping to see. If in fact, you know, but our partner at FanDuel wanted to have sports, so we were accommodating to them. That was never our goal and objective. Our goal and objective were markets, on events, on markets, for their participants and ours. That's what we're starting to see. For me, that's exactly what we wanted to see happen.

Derek: That's something I think that reinforces the value prop of CME, that we have some of the world's leading benchmark products at CME Group, and now we're making them more approachable and more accessible to individual and next-generation trader through the fully funded or fully collateralized event contracts and prediction markets offering at CME. I think the other thing that we're pleased to see is since December, we've had over 150,000 new accounts trade at CME Group in these products, which is off to a fantastic start. We're continuing to work with our partners that are currently trading, and we have a pipeline of FCMs we're still working to get on board and offer these products to their end users. Optimistic about the future, but a first few good months here at CME Group in our prediction market offering.

Tim McCourt: That's something I think that reinforces the value prop of CME, that we have some of the world's leading benchmark products at CME Group, and now we're making them more approachable and more accessible to individual and next-generation trader through the fully funded or fully collateralized event contracts and prediction markets offering at CME. I think the other thing that we're pleased to see is since December, we've had over 150,000 new accounts trade at CME Group in these products, which is off to a fantastic start. We're continuing to work with our partners that are currently trading, and we have a pipeline of FCMs we're still working to get on board and offer these products to their end users. Optimistic about the future, but a first few good months here at CME Group in our prediction market offering.

Profit excuse me that we have some of the world's leading benchmark products at CME group and now, we're making them more approachable and more accessible to individual and next generation trader through the fully funded or fully collateralized event contracts in prediction markets offering at CME.

Speaker #6: Our goal and objective was to do with markets and distribution. And that is exactly what we're starting to see happen. Even though it's very, very early innings, to say the least, for baseball season, Tim is absolutely right.

Speaker #6: What's going on here? And that's exactly what we were hoping to see. And if in fact our partner at FanDuel wanted to have sports, so we were accommodating to them.

The other thing that we're pleased to see is since December we've had over 150000, new accounts trade at CME group in these products, which is off to a fantastic start we're continuing to work with our partners.

Speaker #6: But that was never our goal and objective. Our goal and objective were markets. On events, on markets. For their participants and ours. And that's what we're starting to see.

That are currently trading and we have a pipeline of actions, we're still working to get onboard and offer these products to their end users so optimistic about the future, but our first few good months here.

Speaker #6: And for me, that's exactly what we wanted to see happen.

Speaker #8: All right. Thank you all very much.

Ben Budish: All right. I thank you all very much.

Speaker #6: Thank you.

Terry Duffy: Thank you.

Speaker #8: The next question in the queue is from Alex Blostine with Goldman Sachs. Your line is now open.

At CME group in our prediction market offering so again just to emphasize a little something when we were originally negotiated this deal with <unk>. Our goal and objective was had nothing to do with sports our goal and objective was to do with markets and distribution and that is exactly what we're starting to see happen, even though it's very very early innings to say the least for baseball season.

Operator: The next question in the queue is from Alex Blostein with Goldman Sachs. Your line is now open.

Terrence Duffy: Ben, just to emphasize a little something. When we originally negotiated this deal with FanDuel, our goal and objective had nothing to do with sports. Our goal and objective was to do with markets and distribution. That is exactly what we're starting to see happen. Even though it's very early innings, to say the least, for baseball season, Tim is absolutely right. What's going on here, and that's exactly what we were hoping to see. If in fact, both our partner at FanDuel wanted to have sports, so we were accommodating to them. That was never our goal and objective. Our goal and objective were markets, on events, on markets, for their participants and ours, and that's what we're starting to see. For me, that's exactly what we wanted to see happen. All right. Thank you all very much. Thank you.

Speaker #11: Hey, guys. Good morning. Thank you for the question. I had a follow-up on the energy markets. And just curious to get your thoughts on the health of the underlying customer.

Alex Blostein: Hey, guys. Good morning. Thank you for the question. I had a follow-up on the energy markets. Just curious to get your thoughts on the health of the underlying customer. Obviously, we've seen extreme volatility, which feels like might continue for some time. There's always a debate about good vol, bad vol. This doesn't feel like great vol. If you think about what's happening with the underlying users, and the durability perhaps of the customer base on a go-forward basis, I would love to hear your comments on that. Thanks.

Speaker #11: Obviously, we've seen extreme volatility which feels like might continue for some time. There's always a debate about good vol, bad vol. This doesn't feel like great vol.

Absolutely right, what's going on here and that's exactly what we were hoping to see and if in fact, you know about our partner at Banfield wanted to have a sports. So we're accommodating to them, but that was never our goal and objective our goal and objective where markets on events on markets for their participants and ours and that's what we're starting to see in for me.

Speaker #11: So if you think about what's happening when the underlying users and the durability perhaps of the customer base, on the go-forward basis, I would love to hear your comments on that.

Speaker #11: Thanks.

Speaker #6: Derek?

Speaker #10: Yeah. It's a great question. I think that when you look at markets in times of stress, as I mentioned before, you're going to see liquidity retrench back to home markets.

Terry Duffy: Derrick?

Terry Duffy: Derek?

Derek: Yeah, it's a great question. I think that when you look at markets in times of stress, as I mentioned before, you're gonna see liquidity retrench back to home markets. We've absolutely seen that. When we think about healthy markets, we think about a couple different markers. Number one, we wanna see health across the entire breadth of the portfolio. We saw record activity, not just in WTI futures, but options. We saw record activity and open interest being held in the crude guide contract, as I mentioned before. We're seeing record uptake and actually fastest uptake in Europe and Asia. We're seeing options set records, particularly in the short-dated part of the curve as well. Broad-based activity across all products. We're not seeing activity spikes in one.

Derek Sammann: Yeah, it's a great question. I think that when you look at markets in times of stress, as I mentioned before, you're gonna see liquidity retrench back to home markets. We've absolutely seen that. When we think about healthy markets, we think about a couple different markers. Number one, we wanna see health across the entire breadth of the portfolio. We saw record activity, not just in WTI futures, but options. We saw record activity and open interest being held in the crude guide contract, as I mentioned before. We're seeing record uptake and actually fastest uptake in Europe and Asia. We're seeing options set records, particularly in the short-dated part of the curve as well. Broad-based activity across all products. We're not seeing activity spikes in one.

It's exactly what we wanted to see happen.

Ben Budish: All right. Thank you all very much.

Alright, Thank you all and pretty much. Thank.

Terrence Duffy: Thank you.

Speaker #10: And we've absolutely seen that when we think about healthy markets, we think about a couple of different markers. Number one, we want to see health across the entire breadth of the portfolio.

Thank you.

Operator: The next question in the queue is from Alexander Blostein with Goldman Sachs. Your line is now open.

The next question in the queue is from Alex Blaustein with Goldman Sachs. Your line is now open.

Speaker #10: So it's our record activity, not just in WTI futures, but options. We saw record activity in open interest being held in the crude guide contract, as I mentioned before.

Alex Blostein: Hey, guys. Good morning. Thank you for the question. I had a follow-up on the energy markets, and just curious to get your thoughts on the health of the underlying customer. Obviously, we've seen extreme volatility, which feels like might continue for some time. There's always a debate about good vol, bad vol. This doesn't feel like great vol. If you think about what's happening with the underlying users, and the durability perhaps, of the customer base on a go-forward basis, I would love to hear your comments on that. Thanks.

Hey, guys. Good morning, Thank you for the question.

I had a follow up on the energy markets.

Just curious to get your thoughts on the health of the underlying customer obviously, we've seen extreme volatility.

Speaker #10: We're seeing record uptake and actually fastest uptake in Europe and Asia. And we're seeing options set records, particularly in the short-dated part of the curve as well.

Which feels like May continue for some time.

There's always a debate about good ball bad vol. This doesn't feel like great wall. So if you think about what's happening with the underlying users and the durability, perhaps of the customer base on the on the go forward views I would love to hear your comments on that thanks.

Speaker #10: So broad-based activity across all products. We're not seeing activity spikes in one. We're also seeing, despite the fact that we're seeing some pretty unprecedented volatility times and uncertainty, open interest in energy has been extremely resilient.

Derek: We're also seeing, despite the fact that we're seeing some pretty unprecedented volatility times and uncertainty, open interest in energy has been extremely resilient. If you look at open interest, since the Dec 31, our open interest in energy is up 14%. Even on a year-on-year basis, open interest is up 1%. Open interest is a marker of the sustainability and health of activity, and that is still holding in well. One of the other markers we look at is the breadth of activity across client segments, and every one of our client segments continues to perform, up double digits across the board, led by our commercial customers, not surprisingly, in markets like this. Retail has returned over this last quarter, as we saw in the metals markets as well.

Derek Sammann: We're also seeing, despite the fact that we're seeing some pretty unprecedented volatility times and uncertainty, open interest in energy has been extremely resilient. If you look at open interest, since the Dec 31, our open interest in energy is up 14%. Even on a year-on-year basis, open interest is up 1%. Open interest is a marker of the sustainability and health of activity, and that is still holding in well. One of the other markers we look at is the breadth of activity across client segments, and every one of our client segments continues to perform, up double digits across the board, led by our commercial customers, not surprisingly, in markets like this. Retail has returned over this last quarter, as we saw in the metals markets as well.

Speaker #10: If you look at open interest since the DEC 31st, our open interest in energy is up 14 percent. Even on a year-on-year basis, open interest is up 1 percent.

Terrence Duffy: Derek?

Sure Yes, great question I think that when you look at markets in times of stress as I mentioned before youre going to see liquidity retrench back to home home markets and we've absolutely seen that when we think about healthy markets. We think about a couple of different markers number one we want to see health across the entire breadth of the portfolio. So it was a record activity not just in <unk> futures and options we have.

Derek: Yeah, it's a great question. I think that when you look at markets in times of stress, as I mentioned before, you're going to see liquidity retrench back to home markets, and we've absolutely seen that. When we think about healthy markets, we think about a couple of different markers. Number one, we want to see health across the entire breadth of the portfolio. So we saw record activity, not just in WTI futures, but options. We saw record activity and open interest being held in the Crude Grade contract, as I mentioned before. We're seeing record uptake and actually fastest uptake in Europe and Asia, and we're seeing options set records, particularly in the short-dated part of the curve as well. So broad-based activity across all products. We're not seeing activity spikes in one.

Derek Sammann: Yeah, it's a great question. I think that when you look at markets in times of stress, as I mentioned before, you're going to see liquidity retrench back to home markets, and we've absolutely seen that. When we think about healthy markets, we think about a couple of different markers. Number one, we want to see health across the entire breadth of the portfolio. So we saw record activity, not just in WTI futures, but options. We saw record activity and open interest being held in the Crude Grade contract, as I mentioned before. We're seeing record uptake and actually fastest uptake in Europe and Asia, and we're seeing options set records, particularly in the short-dated part of the curve as well. So broad-based activity across all products. We're not seeing activity spikes in one.

Speaker #10: So open interest is a marker of the sustainability and health of activity. And that is still holding in well. One of the other markers we look at is the breadth of activity across client segments.

Speaker #10: And every one of our client segments continues to perform up double digits across the board. Led by our commercial customers, not surprisingly, in markets like this, retail has returned over the last quarter as we saw in the metals markets as well.

Record activity in open interest being held in the crude got contract as I mentioned before we're seeing record uptake and actually fastest uptake in Europe, and Asia, and we're seeing options set records, particularly in the short dated part of the curve as well so broad based activity across all products were not seen activity spikes in one we're also seeing despite the fact that we're seeing some pretty.

Speaker #10: Very much wanted to be actively involved in our micro contracts. But I would say the growth and the sustainability and the open interest holdings continue to be show positive trends.

Derek: Very much wanted to be actively involved in our micro contracts. I would say the growth and the sustainability and the open interest holdings continue to be show positive trends. We're seeing sustained activity. We are not seeing activity that we saw immediately following COVID, which was a spike in activity, closing open interest, and reduction in activity across client segments. We are seeing a healthy amount of activity. I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short-dated options business, that are giving customers the ability to discreetly manage event risk like we're seeing right now. That's why we're seeing records in weekly options that I think customers are using to manage short-dated risk around longer-term core exposure.

Derek Sammann: Very much wanted to be actively involved in our micro contracts. I would say the growth and the sustainability and the open interest holdings continue to be show positive trends. We're seeing sustained activity. We are not seeing activity that we saw immediately following COVID, which was a spike in activity, closing open interest, and reduction in activity across client segments. We are seeing a healthy amount of activity. I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short-dated options business, that are giving customers the ability to discreetly manage event risk like we're seeing right now. That's why we're seeing records in weekly options that I think customers are using to manage short-dated risk around longer-term core exposure.

Derek: We're also seeing, despite the fact that we're seeing some pretty unprecedented volatility times and uncertainty, open interest in energy has been extremely resilient. If you look at open interest since 31 December, our open interest in energy is up 14%. Even on a year-on-year basis, open interest is up 1%. Open interest is a marker of the sustainability and the health of activity, and that is still holding up well. One of the other markers we look at is the breadth of activity across client segments, and every one of our client segments continues to perform up double digits across the board, led by our commercial customers, not surprisingly, in markets like this. Retail has returned over this last quarter, as we saw in the metals markets as well. Very much wanted to be actively involved in our micro contracts.

Derek Sammann: We're also seeing, despite the fact that we're seeing some pretty unprecedented volatility times and uncertainty, open interest in energy has been extremely resilient. If you look at open interest since 31 December, our open interest in energy is up 14%. Even on a year-on-year basis, open interest is up 1%. Open interest is a marker of the sustainability and the health of activity, and that is still holding up well. One of the other markers we look at is the breadth of activity across client segments, and every one of our client segments continues to perform up double digits across the board, led by our commercial customers, not surprisingly, in markets like this. Retail has returned over this last quarter, as we saw in the metals markets as well. Very much wanted to be actively involved in our micro contracts.

This volatility Thompson and uncertainty open interest in energy has been extremely resilient. If you look at open interest.

Speaker #10: And we're seeing sustained activity. We are not seeing activity that we saw immediately following COVID, which was a spike in activity, closing open interest, and reduction in activity across client segments.

Since the Dec 31 are up in interest in energy is up 14% even on a year on year basis open interest is up 1%. So open niches as a marker of this the sustainability and the health of activity and that is still holding in well.

Speaker #10: So we are seeing a healthy amount of activity. I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short-dated options business that are giving customers the ability to discreetly manage event risk like we're seeing right now.

One of the other markers we look at is the breadth of activity across client segments and every one of our client segments continues to perform up double digits across the board led by our commercial customers not surprisingly in markets. Like this retail has returned over this last quarter as we saw in the metals markets as well very much wanted to be at.

Speaker #10: And that's why we're seeing records in weekly options that I think customers are using to manage short-dated risk around longer-term core exposures. So at this point, we're seeing into April a strong participation, open interest holding in there.

Derek: At this point, we're seeing into April a strong participation, open interest holding in there, and good participation across clients.

Derek Sammann: At this point, we're seeing into April a strong participation, open interest holding in there, and good participation across clients.

Speaker #10: And good participation across clients.

Activity involved in micro contracts, but I would say that the growth and the sustainability and the open interest holdings continue to be show positive trends and machines were seeing sustained activity. We are not seeing activity that we saw immediately following COVID-19, which was a spike in activity closing open interest and reduction in activity across client segments. So.

Derek: I would say the growth, the sustainability, and the open interest holdings continue to show positive trends, and we're seeing sustained activity. We are not seeing activity that we saw immediately following COVID, which was a spike in activity, closing open interest, and a reduction in activity across client segments. We are seeing a healthy amount of activity. I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short-dated options business, that are giving customers the ability to discreetly manage event risk like we're seeing right now. That's why we're seeing records in weekly options that I think customers are using to manage short-dated risk around longer-term core exposure. At this point, we're seeing into April a strong participation, open interest holding in there, and good participation across clients.

Speaker #6: And just to add to that, Alex, and I think you got to look at the entire industry and it's not just oil. It's the shipping industry.

Derek Sammann: I would say the growth, the sustainability, and the open interest holdings continue to show positive trends, and we're seeing sustained activity. We are not seeing activity that we saw immediately following COVID, which was a spike in activity, closing open interest, and a reduction in activity across client segments. We are seeing a healthy amount of activity. I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short-dated options business, that are giving customers the ability to discreetly manage event risk like we're seeing right now. That's why we're seeing records in weekly options that I think customers are using to manage short-dated risk around longer-term core exposure. At this point, we're seeing into April a strong participation, open interest holding in there, and good participation across clients.

Terry Duffy: Just to add to that, Alex, you know, I think you gotta look at the entire industry, and it's not just oil, it's the shipping industry. These are billion-dollar ships that are sitting out there that need to be insured. Insurance companies are very nervous about extending insurance to some of these billion-dollar ships that could be blown up in a heartbeat. They are looking to offset some of their risk on the insurance side, whether they're creating a swap or trading futures against it. I think the new the client base will continue to expand because this even though whenever this gets resolved, people are still going to be very concerned.

Speaker #6: These are billion-dollar ships that are sitting out there that need to be insured. Insurance companies are very nervous about extending insurance to some of these billion-dollar ships that could be blown up in a heartbeat.

Speaker #6: So they are looking to offset some of their risk on the insurance, whether they're creating a swap or trading futures against it. So I think the client base will continue to expand because even though whenever this gets resolved, people are still going to be very concerned.

We are seeing a healthy amount of activity I would attribute at least a portion of that strength in these markets to the growth in our options business, particularly the short dated options business that are giving customers the ability to discrete.

Discretely manage event risk like we're seeing right now and Thats why were seeing records in weekly options that I think customers are using to manage short dated risk around longer term core exposures. So at this point, we're seeing into April a strong participation open interest holding in there and good participation across clients and just to add to that Alex I think you've got to look at.

Speaker #6: So I think we'll get a new constituency of participants, not too dissimilar from the mortgage industry and others, from insurers and reinsurers from the energy business using our products and others in order to manage that risk going forward.

Terry Duffy: I think we'll get a new constituency of participants, not too dissimilar from the mortgage industry and others, from insurers and reinsurers from the energy business using our products and others in order to manage that risk going forward. These are very expensive vessels that they cannot afford to have being sunk, you know, in the Strait of Hormuz or anywhere else. I think it's a very interesting what's going on. You mentioned good vol and bad vol, Alex. I wanna touch on that for a second. Good vol is a volatility that market kinda, you know, goes orderly in a direction and then maybe goes into a different direction. When you see pockets of volatility with not much trade, that to me is bad volatility, but that's headline volatility. Headline volatility can be very disruptive to the marketplace.

Speaker #6: These are very expensive vessels that they cannot afford to have being sunk in the Strait of Hormuz or anywhere else. So I think it's a very interesting what's going on.

Terrence Duffy: Just to add to that, Alex, I think you got to look at the entire industry, and it's not just oil, it's the shipping industry. These are billion-dollar ships that are sitting out there that need to be insured. Insurance companies are very nervous about extending insurance to some of these billion-dollar ships that could be blown up in a heartbeat. So they are looking to offset some of their risk on the insurance side, whether they're creating a swap or trading futures against it. I think the client base will continue to expand because even though whenever this gets resolved, people are still going to be very concerned.

The entire industry and it's not just oil it's the shipping industry. These are $1 billion of ships that are sitting out there that need to be insured insurance companies are very nervous about extending insurance to some of these $1 billion ships that it can be blown up in a heartbeat. So they are looking to offset some of their risk on the insurance side, whether theyre, creating a swap or trading futures against it.

Speaker #6: You mentioned good vol and bad vol, Alex. I want to touch on that for a second. So good vol is a volatility that market kind of goes orderly in a direction and then maybe goes into a different direction.

Speaker #6: When you see pockets of volatility with not much trade, that to me is bad volatility. But that's headline volatility. And headline volatility can be very disruptive to the marketplace.

I think that the client base, we will continue to expand because even though whenever this gets resolved people are still going to be very concerned. So I think we'll get a new constituency of participants so not too dissimilar from the mortgage industry and others.

Speaker #6: And there's a lot to that. But that normally is short-lasting as well on the bad volatility. So we'll see how that continues to proceed going forward.

Terry Duffy: There's a lot to that, but that normally is short-lasting as well on the bad volatility. We'll see how that continues to proceed going forward.

Terrence Duffy: I think we'll get a new constituency of participants, not too dissimilar from the mortgage industry and others, from insurers and reinsurers, from the energy business using our products and others in order to manage that risk going forward. These are very expensive vessels that they cannot afford to have being sunk in the Strait of Hormuz or anywhere else. I think it's very interesting what's going on. You mentioned good vol and bad vol, Alex. I want to touch on that for a second. Good vol is a volatility that the market kind of goes orderly in a direction and then maybe goes into a different direction. When you see pockets of volatility with not much trade, that to me is bad volatility, but that's headline volatility. Headline volatility can be very disruptive to the marketplace.

Speaker #8: Got it. Yep. No, super helpful. One quick follow-up just on the numbers. Obviously, with a lot of volumes coming through, RPCs came down a bit.

Alex Blostein: Got it. Yep. No, super helpful. One quick follow-up just on the numbers. Obviously, with a lot of volumes coming through, RPCs came down a bit and, you know, was hoping you could maybe frame how to think about near-term RPC across, particularly the energy markets where we are seeing the bigger decline.

<unk> and reinsurers from the energy business, using our products and others in order to manage that risk going forward. These are very expensive vessels that they cannot afford to have being sunk.

Speaker #8: And I was hoping you could maybe frame how to think about near-term RPC across, particularly the energy markets where we're seeing the bigger decline.

In the Strait of Hormuz or anywhere else. So I think it's a very interesting what's going on you mentioned good ball and bad vol. Alex I want to touch on that for a second so good valve is a volatility that market kind of goes orderly and the direction and maybe it goes into a different direction. When you see pockets of volatility with not much trade that that to me is bad volatility but.

Speaker #6: Thank you, Alex. Lynn?

Terry Duffy: Thank you, Alex. Lynn?

Speaker #12: Yeah. So I would keep in mind a few things when you look at the energy volume and the RPC in this quarter. First, as Derek touched on, we obviously had record volume there.

Lynne Fitzpatrick: Yeah. I would keep in mind a few things when you look at the energy volume and the RPC in this quarter. First, as Derrick touched on, we obviously had record volume there, but you also had some real spikes in short periods of time. March, the level of activity we saw there is certainly impacting the numbers. If you look at the total volume growth, you would expect additional usage of volume tiering. You also saw a mix shift towards crude, which tends to be lower price than things like our natural gas. Derrick also touched on one other thing, the micro business really grew significantly. We saw about 315,000 micro energy contracts a day this quarter. That was up from about 80,000 contracts a day in the same quarter last year.

Lynne Fitzpatrick: Yeah. I would keep in mind a few things when you look at the energy volume and the RPC in this quarter. First, as Derek touched on, we obviously had record volume there, but you also had some real spikes in short periods of time. March, the level of activity we saw there is certainly impacting the numbers. If you look at the total volume growth, you would expect additional usage of volume tiering. You also saw a mix shift towards crude, which tends to be lower price than things like our natural gas. Derek also touched on one other thing, the micro business really grew significantly. We saw about 315,000 micro energy contracts a day this quarter. That was up from about 80,000 contracts a day in the same quarter last year.

Speaker #12: But you also had some real spikes in short periods of time. So March, the level of activity we saw there is certainly impacting the numbers.

That's headline volatility and headline volatility can be very disruptive to the marketplace and there's a lot to that but that normally is short lasting as well on the bad volatility. So we'll see how that continues to proceed going forward.

Speaker #12: So if you look at the total volume growth, you would expect additional usage of volume tiering. You also saw a mixed shift towards crude, which tends to be lower priced than things like our natural gas.

Terrence Duffy: There's a lot to that, but that normally is short-lasting as well on the bad volatility. We'll see how that continues to proceed going forward.

Speaker #12: And Derek also touched on one other thing, the micro business really grew significantly. So we saw about 315,000 micro energy contracts a day this quarter.

Alex Blostein: Got it. Yep. No, super helpful. One quick follow-up just on the numbers. Obviously, with a lot of volumes coming through, RPCs came down a bit, and I was hoping you could maybe frame how to think about near-term RPC across particularly the energy markets where we're seeing the bigger decline.

Got it Super helpful. One quick follow up just on the numbers.

Obviously with a lot of volumes coming through Rpc's came down a bit and it.

Speaker #12: That was up from about 80,000 contracts a day in the same quarter last year. So that is going to have a dampening effect on the weighted average.

Was hoping you could maybe frame how to think about near term RPC across particularly the energy markets, where we're seeing the bigger decline.

Lynne Fitzpatrick: That is gonna have a dampening effect on the weighted average. Those are at about $0.52 a contract. I think those three factors really are what weighed in on the energy RPC. The last one that's a little bit harder to see is just the shift towards more member trading. That's really where we saw that impact. Going forward, I would look at that overall level of volume in terms of volume tiering, and then I would look at those mixes in terms of crude versus nat gas and then the micro versus full-size products.

Terrence Duffy: Thank you, Alex. Lynn?

Terrence Duffy: Thank you, Alex. Lynne?

Thank you Alex Lin Yeah, So I would keep in mind, a few things when you look at the energy volume in the RPC in this quarter first as Eric touched on we obviously had record volume there, but you also had some real spikes in short periods of time. So March the level of activity. We saw there is certainly impacting the numbers. So if you look at the total.

Suzanne Sprague: Yeah. I would keep in mind a few things when you look at the energy volume and the RPC in this quarter. First, as Derek touched on, we obviously had record volume there, but you also had some real spikes in short periods of time. March, the level of activity we saw there is certainly impacting the numbers. If you look at the total volume growth, you would expect additional usage of volume tiering. You also saw a mix shift towards crude, which tends to be lower price than things like our nat gas. Derek also touched on one other thing, the micro business really grew significantly. We saw about 315,000 Micro Energy futures a day this quarter. That was up from about 80,000 contracts a day in the same quarter last year.

Lynne Fitzpatrick: Yeah. I would keep in mind a few things when you look at the energy volume and the RPC in this quarter. First, as Derek touched on, we obviously had record volume there, but you also had some real spikes in short periods of time. March, the level of activity we saw there is certainly impacting the numbers. If you look at the total volume growth, you would expect additional usage of volume tiering. You also saw a mix shift towards crude, which tends to be lower price than things like our nat gas. Derek also touched on one other thing, the micro business really grew significantly. We saw about 315,000 Micro Energy futures a day this quarter. That was up from about 80,000 contracts a day in the same quarter last year.

Speaker #12: Those are at about 52 cents a contract. So I think those three factors really are what weighed in on the energy RPC. The last one that's a little bit harder to see is just the shift towards more member trading.

Speaker #12: So that's really where we saw that impact. So going forward, I would look at that overall level of volume in terms of volume tiering.

Volume growth you would expect additional usage volumes hearing you also saw a mix shift towards crude which tends to be lower priced than things like our Nat gas and Eric also touch on one other thing the micro business really grew significantly. So we saw about 315000 micro energy contracts a day.

Speaker #12: And then I would look at those mixes in terms of crude versus natural gas. And then the micro versus full-size products.

Speaker #8: Great. All right. Super helpful. Thank you, everybody.

Terry Duffy: Great. All right. Super helpful. Thank you, everybody. Thanks, Alex.

Alex Blostein: Great. All right. Super helpful. Thank you, everybody.

Speaker #6: Thanks, Alex.

Terry Duffy: Thanks, Alex.

Speaker #8: The next question is from Michael Cyprus with Morgan Stanley. Your line is open.

Operator: The next question is from Michael Cyprys with Morgan Stanley. Your line is open.

Speaker #13: Hey, good morning. Thanks for taking the question. I was just hoping you could update us on your partnership with Google, including tokenizing cash, what the timeframe and key milestones are there, how you see this playing out, and if you could also update us on prospects for our CME stablecoin as well.

This quarter it was up from about 80000 contracts a day in the same quarter last year. So that is going to have a dampening effect on a weighted average those are at about 52 cents of contracts. So I think those three factors really are what weighed in on the energy RPC. The last one that's a little bit.

Michael Cyprys: Hey, good morning. Thanks for taking the question. Was just hoping you could update us on your partnership with Google, including tokenizing cash, what the timeframe and key milestones are there, how you see this playing out? If you could also update us on prospects for CME stablecoin as well?

Suzanne Sprague: That is going to have a dampening effect on the weighted average. Those are at about $0.52 a contract. I think those three factors really are what weighed in on the energy RPC. The last one that's a little bit harder to see is just the shift towards more member trading. That's really where we saw that impact. Going forward, I would look at that overall level of volume in terms of volume tiering, and then I would look at those mixes in terms of crude versus Natural Gas, and then the micro versus full-size products.

Lynne Fitzpatrick: That is going to have a dampening effect on the weighted average. Those are at about $0.52 a contract. I think those three factors really are what weighed in on the energy RPC. The last one that's a little bit harder to see is just the shift towards more member trading. That's really where we saw that impact. Going forward, I would look at that overall level of volume in terms of volume tiering, and then I would look at those mixes in terms of crude versus Natural Gas, and then the micro versus full-size products.

Speaker #6: Yep. Thanks, Michael. I'll have Suzanne and Lynn touch on both because they're both working on those projects. So Suzanne, why don't you talk a little bit about the tokenized with Google and timing and things of that nature?

Terry Duffy: Yeah. Thanks, Michael. I'll have Suzanne and Lynn touch on both because they're both working on both projects. Suzanne, why don't you talk a little bit about the tokenized with Google and timing and things of that nature?

Harder to see is just a shift towards more member trading.

That's really where we saw that impact so going forward I would look at that overall level of volume in terms of volumes hearing and then I would look at those mixes in terms of crude versus Nat gas.

Speaker #14: Yeah. Thanks for the question. So we are working with the settlement banks in our ecosystem, as well as clearing members, to be able to advance the stages of tokenizing cash.

Suzanne Sprague: Yeah, thanks for the question. We are working with the settlement banks in our ecosystem as well as clearing members to be able to advance the stages of tokenizing cash. You may have seen a press release from Bank of Montreal in the last few weeks announcing publicly that they have been working with us and Google on the tokenization project. The goal there really is to be able to increase the testing capabilities within the settlement bank ecosystem, as well as start integrating clearing members into that testing process this year, with a goal of being able to go live by the end of this year. Again, the tokenization of cash really for us enables movement of value outside of traditional banking hours, especially looking at 24 by 7 trading activity, as Terry mentioned in his opening remarks.

And then the micro versus full size products.

Lynne Fitzpatrick: Great. All right. Super helpful. Thank you, everybody.

Alex Blostein: Great. All right. Super helpful. Thank you, everybody.

Speaker #14: You may have seen a press release from Bank of Montreal in the last few weeks announcing publicly that they have been working with us and Google on the tokenization project.

Alright, Alright Super helpful. Thank you everybody.

Terrence Duffy: Thanks, Alex.

Thanks, Alex.

Operator: The next question is from Michael Cyprys with Morgan Stanley. Your line is open.

The next question is from Michael Cyprus with Morgan Stanley. Your line is open.

Michael Cyprys: Hey, good morning. Thanks for taking the question. I was just hoping you could update us on your partnership with Google, including tokenizing cash, what the timeframe and key milestones are there, how you see this playing out, and if you could also update us on prospects for CME Coin as well.

Speaker #14: And so the goal there really is to be able to increase the testing capabilities within the settlement bank ecosystem, as well as start integrating clearing members into that testing process.

Hey, good morning, Thanks for taking the question I was just hoping you could update us on your partnership with Google, including token is in cash with the timeframe and key milestones are there how do you see this playing out and if you could also update us on prospects for CME stable point as well.

Speaker #14: This year, with a goal of being able to go live by the end of this year. And again, the tokenization of cash really for us enables movement of value outside of traditional banking hours especially looking at 24x7 trading activity as Terry mentioned in his opening remarks.

Terrence Duffy: Yeah. Thanks, Michael. I'll have Suzanne and Lynne touch on both because they're both working on those projects. Suzanne, why don't you talk a little bit about the tokenized Google and timing and things of that nature?

Yeah, Thanks, Michael I'll have.

Suzanne and Lynn touch on both because they're both working on both projects. So Susan I wanted to talk a little bit about the token is a Google and timing and things of that nature. Yeah. Thanks for the question.

Suzanne Sprague: Yeah, thanks for the question. We are working with the settlement banks in our ecosystem as well as clearing members to be able to advance the stages of tokenizing cash. You may have seen a press release from Bank of Montreal in the last few weeks announcing publicly that they have been working with us and Google on the tokenization project. The goal there really is to be able to increase the testing capabilities within the settlement bank ecosystem, as well as start integrating clearing members into that testing process this year, with a goal of being able to go live by the end of this year. Again, the tokenization of cash really for us enables movement of value outside of traditional banking hours, especially looking at 24/7 trading activity, as Terry mentioned in his opening remarks.

Speaker #14: It's a key component to being able to enable the movement of value in the off hours, as well as allow us to build upon other tokenized assets using the Google Cloud Universal Ledger.

Suzanne Sprague: It's a key component to being able to enable the movement of value in the off hours, as well as allow us to build upon other tokenized assets using the Google Cloud Universal Ledger. On Stablecoin, we also continue progressing that effort with regulatory engagement. As Terry mentioned there, we are looking to be able to seek a license to be able to issue Stablecoin, and we're exploring technology partners that can help us do that as well. We plan to be able to advance that effort this year, although we can't opine on the regulatory engagement timeline. Happy to have Lynn add anything else as well for Stablecoin.

So we are working with this settlement banks in our ecosystem as well as clearing members to be able to advance. This stages I'm talking I think cash you may have seen our press release from bank of Montreal in the last few weeks announcing publicly that they had been working with us and Google and the <unk> project and so the goal there.

Speaker #14: On stablecoin, we also continue progressing that effort with regulatory engagement. And as Terry mentioned there, we are looking to be able to seek a license to be able to issue stablecoin.

He is to be able to increase the testing capabilities within the settlement bank ecosystem as well as start integrating clearing members into that testing process. This year with the goal of being able to go live by the end of this year and again <unk> of cash really for us enables movement of value outside of tradition.

Speaker #14: And we're exploring technology partners that can help us do that as well. We plan to be able to advance that effort this year, although we can't opine on the regulatory engagement timeline happy to have Lynn add anything else as well for stablecoin.

Speaker #14: Yeah. I'll actually add two things that are a little further afield related to Google. So first, you heard Terry mention that we are getting close to opening our Dallas facility for testing with our clients with the goal of ultimately operating markets in the cloud.

Lynne Fitzpatrick: Yeah. I'll actually add two things that are a little further afield related to Google. First, you heard Terry mention that we are getting close to opening our Dallas facility for testing with our clients with the goal of ultimately operating markets in the cloud. We're excited about that progress that we've made with Google. That was something that has been several years in the making. We're also. You know, that was a big part of the investment that Google originally made in CME. I just wanna make sure you all noted that the Google shares, which were preferred shares, the only difference between those shares and common was that they did not have voting rights. Those did convert into common during this quarter.

Banking hours, especially looking at 24 by seven trading activity as Terry mentioned in his opening remarks, it's a key component to being able to enable the movement of value and the off hours as well as allow us to build upon other token assets using their Google cloud Universal Ledger.

Suzanne Sprague: It's a key component to being able to enable the movement of value in the off-hours, as well as allow us to build upon other tokenized assets using the Google Cloud Universal Ledger. On Stablecoin, we also continue progressing that effort with regulatory engagement. As Terry mentioned there, we are looking to be able to seek a license to be able to issue Stablecoin, and we're exploring technology partners that can help us do that as well. We plan to be able to advance that effort this year, although we can't opine on the regulatory engagement timeline. Happy to have Lynn add anything else as well for Stablecoin.

Speaker #14: So we're excited about that progress that we've made with Google. That was something that has been several years in the making. We're also that was a big part of the investment that Google originally made in CME.

Stable coin, we also continue progressing that effort with regulatory engagement.

Speaker #14: So I just want to make sure you all noted that the Google shares, which were preferred shares, the only difference between those shares and common was that they did not have voting rights.

Terry mentioned, there we are looking to be able to seek a license to be able to issue stable coin and we're exploring technology partners that can help us do that as well.

Speaker #14: Those did convert into common during this quarter. So you will see that in the basic and diluted share count rather than seeing that separate class of preferred stock.

We plan to be able to advance that effort. This year, although we can't opine on the regulatory engagement timeline I'm happy to have Lynn.

Lynne Fitzpatrick: You will see that in the basic and diluted share count rather than seeing that separate class of preferred stock. Going forward, you will also see just that earnings that was allocated to the preferred stock, it will show up just in the basic and diluted. You won't see that differentiation going forward. Just wanted to make sure you captured that.

Anything else is welfare stay behind.

Lynne Fitzpatrick: Yeah. I'll actually add two things that are a little further afield related to Google. First, you heard Terry mention that we are getting close to opening our Dallas facility for testing with our clients with the goal of ultimately operating markets in the cloud. We're excited about that progress that we've made with Google. That was something that has been several years in the making. That was a big part of the investment that Google originally made in CME. I just want to make sure you all noted that the Google shares, which were preferred shares, the only difference between those shares and common was that they did not have voting rights. Those did convert into common during this quarter. You will see that in the basic and diluted share count rather than seeing that separate class of preferred stock.

Speaker #14: So going forward, you will also see just that earnings that was allocated to the preferred stock, it will show up just in the basic and diluted.

I'll actually add two things that are a little further afield related to Google So first.

You heard Terry mentioned that we are getting close to opening our Dallas facility for testing with our clients with the goal of ultimately operating markets in the cloud. So we're excited about that progress that we've made with Google that was something that has been several years in the making.

Speaker #14: So you won't see that differentiation. Going forward. Just wanted to make sure you captured that.

Speaker #6: Do you have anything else on stablecoin? We're good? All right.

Terry Duffy: Do you have anything else to add on, Stablecoin? We're good? All right. Michael, hopefully that addresses your question.

Speaker #13: Michael, hopefully that addresses your question.

We're also.

Speaker #15: Yes. Just a quick follow-up if I could on the cloud. So with the ag contracts, migrating to the cloud, I was hoping you could maybe elaborate on the benefits that you see the steps that you're taking to help facilitate that.

Michael Cyprys: Yes. Just a quick follow-up, if I could, on the cloud. With the ag contracts migrating to the cloud, I was hoping you'd maybe elaborate on the benefits that you see, the steps that you're taking to help facilitate that. You know, how do you see the scope and path for migrating other contracts eventually to the cloud, what that might look like, and, you know, how you sort of evaluate that and what the benefits could be.

That was a big part of the investment that Google originally made in CME. So I just want to make sure you. All noted that the Google shares which were preferred shares the only difference between those shares and common was that they did not have voting rights.

Speaker #15: How do you see the scope and path for migrating other contracts eventually to the cloud? What that might look like and how you sort of evaluate that and what the benefits could be.

Those did convert into common during this quarter. So you will see that in the in the basic and diluted share count rather than seeing that separate class a preferred stock. So going forward. You will also see just that timing that was allocated.

Speaker #6: Well, I'm a big believer of that. This is the future. And I think if you were to start an exchange or any other business today, you'd be in the cloud.

Terry Duffy: Well, I'm a big believer that this is the future, and I think if you were to start an exchange or any other business today, you would be in the cloud. We are 175 years, 20 years old at this stage of our proceedings. I think this is the future of markets having access to be in the cloud. I think the efficiencies that a hyperscaler like Google will be able to provide to CME and its clients will be second to none, and I think that is really exciting. You have to start somewhere. We wanted to start with our less latency-sensitive products, which are the agricultural complex and that commodity side.

Lynne Fitzpatrick: Going forward, you will also see just that earnings that was allocated to the preferred stock. It will show up just in the basic and diluted. You won't see that differentiation going forward. Just want to make sure you captured that.

Speaker #6: We are 175 years, 20 years old. At this stage of our proceedings, I think this is the future of markets having access to be in the cloud.

Allocated to the preferred stock it will show up just in the basic and diluted ads and you'll you won't see that differentiation going forward just wanted to make sure you captured that.

Speaker #6: I think the efficiencies, that hyperscaler like Google will be able to provide to CME and its clients will be second to none. And I think that is really exciting.

Terrence Duffy: Do you have anything else on the Stablecoin? We're good? All right. Michael, hopefully that addresses your question.

Do you have any numbers on the.

Steve Oakland.

Michael hopefully that addresses your question.

Michael Cyprys: Yes, just a quick follow-up, if I could, on the cloud.

Speaker #6: You have to start somewhere. We wanted to start with our less latency-sensitive products, which are the agricultural complex. And that commodity side. So I think this will be the catalyst to show people how the benefits of having markets in the cloud and the redundancy that they will have with 20 other centers, just in the United States alone, if in fact we needed to go there.

Yes, just a quick follow up if I could on the cloud so what's the AG contracts migrating to the cloud I was hoping you could maybe elaborate on the benefits that you see the steps that you're taking to help facilitate that you know how do you see the scope and path for migrating other contracts eventually to the crowds of what that might look like and how you sort of evaluate that and what the benefits could be.

Terrence Duffy: Yeah.

Michael Cyprys: With the ag contracts migrating to the cloud, I was hoping you could maybe elaborate on the benefits that you see, the steps that you're taking to help facilitate that. How do you see the scope and path for migrating other contracts eventually to the cloud? What that might look like, and how you sort of evaluate that and what the benefits could be.

Terry Duffy: I think this will be the catalyst to show people how the benefits of having markets in the cloud and the redundancy that they will have with 20 other centers just in the US alone, if in fact we needed to go there. It's pretty exciting from my standpoint. This was our vision going way back during the pandemic in 2020 and 2021 to do this with a big partner like Google. I think the future, not only it was looked at, is starting to be realized. I think it's exciting, and I'm looking forward to this progressing forward, and I'm looking forward to every single product being in the cloud as long as, and I'll say it again, as long as Google's technology and facilities are better than what we have right now, and I believe they will be.

Terrence Duffy: Well, I'm a big believer that this is the future, and I think if you were to start an exchange or any other business today, you would be in the cloud. We are 175 years, 20 years old at this stage of our proceedings. I think this is the future of markets having access to be in the cloud. I think the efficiencies that a hyperscale like Google will be able to provide to CME and its clients will be second to none, and I think that is really exciting. You have to start somewhere. We wanted to start with our less latency sensitive products, which are the agricultural complex and that commodity side.

I'm a big believer that this is the future and I think if you were to start in exchange or any other business today, you would be in the cloud.

Speaker #6: So it's pretty exciting from my standpoint. This was our vision going way back during the pandemic in 20 and 21 to do this with a big partner like Google.

We are 175 years 20 years old at this stage of our proceedings I think this is the future of markets, having access to be in the cloud I think the efficiencies that our hyperscale or like Google will be able to provide the CME and its clients will be second to none and I think that is really exciting.

Speaker #6: And I think the future not only it was looked at is starting to be realized. So I think it's exciting. And I'm looking forward to this progressing forward.

Speaker #6: And I'm looking forward to every single product being in the cloud as long as, and I'll say it again, as long as Google's technology and facilities are better than what we have right now.

You have to start somewhere we wanted to start with our west latency sensitive products, which are the agricultural complex in that commodity side. So I think this will be the catalyst the show people.

Speaker #6: And I believe they will be.

Terrence Duffy: I think this will be the catalyst to show people how the benefits of having markets in the cloud and the redundancy that they will have with 20 other centers just in the United States alone, if in fact we needed to go there. It's pretty exciting from my standpoint. This was our vision going way back during the pandemic in 2020 and 2021 to do this with a big partner like Google. I think the future, not only it was looked at, is starting to be realized. I think it's exciting, and I'm looking forward to this progressing forward, and I'm looking forward to every single product being in the cloud. As long as, and I'll say it again, as long as Google's technology and facilities are better than what we have right now, and I believe they will be.

Speaker #15: Great. Thank you.

Michael Cyprys: Great. Thank you.

Speaker #6: Thank you.

Terry Duffy: Thank you.

The benefits.

Speaker #8: The next question in the queue is from Bill Katz with TD Cowan. Your line is open.

Of having markets in the cloud and the redundancy that they will have.

Operator: The next question in the queue is from Bill Katz with TD Cowen. Your line is open.

Speaker #13: Okay. Thank you very much for taking the question. Maybe Terry, one for you. I was wondering if you could update us your thinking on capital allocation at this point in time.

With 20 other centers just in the United States alone if in fact, we needed to go there so.

Bill Katz: Okay. Thank you very much for taking the question. Maybe, Terry, one for you. I was wondering if you update us your thinking on capital allocation at this point in time. Obviously, you have the dividend. I'm sort of curious of where your thinking is on M&A. In particular, it seems like there's a lot of different vectors of growth in the industry, both de novo and inorganic. How that might shape your views of priorities. Thank you.

It's pretty exciting from my standpoint, this was our vision going way back during the pandemic in 2020 wanted to do this with a big partner like Google and I think the future not only it was looked at is starting to be realized so I think it's exciting and I'm looking forward to this progressing forward and I'm looking forward to every single product being in the club.

Speaker #13: Obviously, you have the dividend. But I'm sort of curious of where your thinking is. On M&A, in particular, it seems like there's a lot of different vectors of growth in the industry, both de novo and inorganic.

Speaker #13: And how that might shape your views of priorities. Thank you.

Speaker #6: So I missed the latter part. But on the capital allocation, Bill, I think is what your question was, the first one. I'll let you take the second one.

Terry Duffy: I missed the latter part. On the capital allocation, Bill, I think is what your question was, the first one. I'll let you take the second. On capital allocation, you know, I think from the beginning, though, going back to 2002, I was a big proponent of paying a dividend at CME when everybody else said you shouldn't do that, but I thought it served our interest really well. I still think it does, and I think returning capital to shareholders is really important. At the same time, I don't want to be stuck in a situation where we're afraid to do something that we think can grow the business, you know, whether it's through M&A or something else if the opportunity presents itself.

<unk> as long as and I'll say, it again as long as Google's technology and facilities are better.

Speaker #6: But on capital allocation, I think from the beginning, Bill, going back to '02, I was a big proponent of paying a dividend at CME when everybody else said you shouldn't do that.

We have right now and I believe they will be.

Michael Cyprys: Great. Thank you.

Speaker #6: But I thought it served our interest really well. I still think it does. And I think returning capital to shareholders is really important. But at the same time, I don't want to be stuck in a situation where we're afraid to do something that we think can grow the business, whether it's through M&A or something else.

Great. Thank you.

Terrence Duffy: Thank you.

Thank you.

Operator: The next question in the queue is from William Katz with TD Cowen. Your line is open.

Operator: The next question in the queue is from Bill Katz with TD Cowen. Your line is open.

The next question in the queue is from Bill Katz with TD Cowen Your line is open.

Bill Katz: Okay. Thank you very much. Taking the question. Maybe, Terry, one for you. I was wondering if you update us your thinking on capital allocation at this point in time. Obviously, you have the dividend, but I'm sort of curious of what your thinking is on M&A. In particular, it seems like there's a lot of different vectors of growth in the industry, both de novo and inorganic, and how that might shape your views of priorities. Thank you.

Okay. Thank you very much for taking the question maybe one for you. Firstly can you update us your thinking on capital allocation at this point in time.

Speaker #6: If the opportunity presents itself. So I think instead of putting myself in a box or the company in a box about capital allocation, right now, we are in a really strong position with our dividend.

Obviously, you have the dividend, but I'm sort of curious of where your thinking is.

Terry Duffy: I think instead of putting myself in a box or the company in a box about capital allocation, right now, we are in a really strong position with our dividend. We're in a strong position on repurchasing shares, as you heard Lynne's talk about earlier. Again, if there's an opportunity that we see that makes sense for our shareholders, without going too far outside of the scope of what we do, we will be evaluating those, and that might change our capital allocation at that time. Right now, we're pretty committed to where we're at on the allocation of dividend and share repurchase for now. What was the latter part of your question?

On M&A in particular, it seems like there's a lot of different vectors of growth for the industry, both de novo inorganic and how that might shape your views of priorities. Thank you.

Speaker #6: We're in a strong position on repurchasing shares that you heard Lynn's talk about earlier. But again, if there's an opportunity that we see that makes sense for our shareholders, without going out too far outside of the scope of what we do, we will be evaluating those.

Terrence Duffy: I missed the latter part, but on the capital allocation, Bill, I think is what your question was, the first one. I'll let you take the second one. On capital allocation, I think from the beginning, Bill, going back to 2002, I was a big proponent of paying a dividend at CME when everybody else said you shouldn't do that, but I thought it served our interest really well. I still think it does, and I think returning capital to shareholders is really important. At the same time, I don't want to be stuck in a situation where we're afraid to do something that we think can grow the business, whether it's through M&A or something else, if the opportunity presents itself.

So I missed the latter part but on the capital allocation, though I think is what your question was the first one and I'll, Let me take the second one but on capital allocation you know I think from the beginning they'll go back though to I was a big proponent of paying a dividend at CMA when everybody else that you shouldn't do that but I thought it served our interests really well.

Speaker #6: And that might change our capital allocation at that time. But right now, we're pretty committed to where we're at on the allocation of dividend and share repurchase for now.

Speaker #6: And what was that latter part of your question?

I still think it does and I think returning capital to shareholders is really important but at the same time I don't want to be stuck in a situation, where we're afraid to do something that we think can grow the business, whether it's through M&A or something else. If they if the opportunity presents itself. So I think instead of putting myself in a box of the company in a box.

Speaker #13: It was all the same question. Thank you. And then maybe just a quick follow-up, one for Lynn. If I look at your adjusted expenses, excluding licensing fees, it looks like it was up about 7% year on year if I did the math correctly.

Bill Katz: It was all in the same question. Thank you. Then maybe just a quick follow-up one for Lynn. If I look at your adjusted expenses excluding licensing fees, it looks like it was up about 7% year on year if I did the math correctly.

Speaker #13: I think your firm, your guidance for 1.695 billion for the year, could you sort of unpack what the growth was in the Q1 and how we should think about maybe the sort of the pacing as we look through the rest of the year?

Terrence Duffy: I think instead of putting myself in a box with a company in a box about capital allocation, right now we are in a really strong position with our dividend. We're in a strong position on repurchasing shares, as you heard Lynn talk about earlier. But again, if there's an opportunity that we see that makes sense for our shareholders without going out too far outside of the scope of what we do, we will be evaluating those, and that might change our capital allocation at that time. But right now, we're pretty committed to where we're at on the allocation of dividend and share repurchase for now. What was the latter part of your question?

Lynne Fitzpatrick: Yeah

Bill Katz: I think you affirmed your guidance for $1.695 billion for the year. Could you sort of unpack what the growth was in Q1 and how we should think about maybe the sort of the pacing as we look through the rest of the year?

About capital allocation right now we are in a really strong position with our dividend. We are in a strong position on repurchasing shares as you heard winds.

Speaker #14: Yeah. So certainly. And your numbers are correct. So we saw about a 7% growth rate in Q1. Obviously, with the high level of activity, you saw some of the variable expenses come in a bit higher.

Talk about earlier, but again, if there is an opportunity that we see that makes sense for our shareholders.

Lynne Fitzpatrick: Yeah. Certainly, your numbers are correct. We saw about a 7% growth rate in Q1. Obviously, with the high level of activity, you saw some of the variable expenses come in a bit higher. You'll see that in compensation. You will also see that in technology, where we did see more activity going across the system. We'll continue to monitor as we go forward. You know, we sometimes see these spikes in activity. We're seeing a little bit of softer activity so far here in April, but it tends to be different periods of time over the course of the year. We'll continue to look at that guidance as we move forward, but at this point, we're comfortable with where we're at.

Without going out too far outside of the scope of what we do.

Speaker #14: So you'll see that in compensation, you will also see that in technology where we did see more activity going across the system. So we'll continue to monitor as we go forward.

We will be evaluating those and that might change our capital allocation at that time, but right now we're pretty committed to where we're at on the allocation of dividend and share repurchase for now and what was the latter part of your question.

Bill Katz: It was all in the same question. Thank you. Then maybe just a quick follow-up one for Lynn. If I look at your adjusted expenses, excluding licensing fees, it looks like it was up about 7% year-on-year, if I did the math correctly.

Speaker #14: We sometimes see these spikes in activity. We're seeing a little bit of softer activity so far here in April. But it tends to be different periods of time over the course of the year.

It was all it was all in the same question. Thank you and then maybe just a quick follow up one for Linda if I look at your adjusted expenses, excluding licensing fees. It looks like it was up seven.

7% year on year, if I did the math correctly yeah. Thank you. Thank.

Speaker #14: So we'll continue to look at that guidance as we move forward. But at this point, we're comfortable with where we're at. I would point out that we do expect the occupancy cost to continue to grow over the course of the year as we do things like opening the Dallas facility.

Lynne Fitzpatrick: Yeah.

Lynne Fitzpatrick: I think you firmed your guidance for $1.695 billion for the year. Could you sort of unpack what the growth was in Q1 and how we should think about maybe the sort of the pacing as we look through the rest of the year?

Bill Katz: I think you firmed your guidance for $1.695 billion for the year. Could you sort of unpack what the growth was in Q1 and how we should think about maybe the sort of the pacing as we look through the rest of the year?

You affirmed your guidance for $1 695 billion for the year could you just sort of unpack what the growth was in Q1 and how we should think about maybe the.

Lynne Fitzpatrick: I would point out that we do expect the occupancy cost to continue to grow over the course of the year as we do things like opening the Dallas facility. You will expect technology to continue to grow as we move more into the cloud environment. The others don't have as many specific drivers that I'd call out.

Just sort of the pacing as we look through the rest of the year.

Lynne Fitzpatrick: Yeah. Certainly, and your numbers are correct. We saw about a 7% growth rate in Q1. Obviously, with a high level of activity, you saw some of the variable expenses come in a bit higher. You'll see that in compensation. You will also see that in technology, where we did see more activity going across the system. We'll continue to monitor as we go forward. We sometimes see these spikes in activity. We're seeing a little bit of softer activity so far here in April, but it tends to be different periods of time over the course of the year. We'll continue to look at that guidance as we move forward, but at this point, we're comfortable with where we're at.

Yes, certainly and your numbers are correct. So we thought about a 7% growth rate in Q1, obviously with the high level of activity you saw some of the variable expenses come in a bit higher so you'll see that in compensation. You will also see that in technology, where we did see more activity going going across the system.

Speaker #14: You will expect technology to continue to grow as we move more into the cloud environment. The others don't have as many specific drivers that I'd call out.

Speaker #13: Thank you.

Bill Katz: Thank you.

Speaker #6: Thanks, Bill.

Terry Duffy: Thanks, Bill.

Speaker #8: Next question is from Craig Siegenthaler with Bank of America. Your line is open.

Operator: Next question is from Craig Siegenthaler with Bank of America. Your line is open.

We will continue to monitor as we go forward.

We sometimes see these spikes in activity, we're seeing a little bit of.

Speaker #6: Thanks. Good morning, everyone. We were looking for an update on your prediction markets, FCM JV with Fandale. Just given Fandale's announcement earlier this month that they will launch a new FCM, so I assume they're going to favor the new venture where they can keep 100% of profits.

Craig Siegenthaler: Thanks. Good morning, everyone. We were looking for an update on your prediction markets FCM JV with FanDuel, just given FanDuel's announcement earlier this month that they will launch a new FCM. I assume they're gonna favor the new venture where they can keep 100% of profits. Are there any major differences in the offering?

Softer activity so far here in April, but it tends to be different periods of time over the course of the year. So we'll continue to look at that guidance as we move forward, but at this point, we're comfortable with where we're at and would point out that we do expect the occupancy costs to continue to grow over the course of the year as we do things like opening the door.

Speaker #6: So are there any major differences in the offering? Yeah. Thanks for the question, Craig. And I think there's a bit of confusion on what they can and cannot do with that potential application process.

Terry Duffy: Yeah, thanks for the question, Craig. I think there's a bit of confusion on what they can and cannot do with that potential application process. I'll let Lynn describe it to you so we're all on the same page.

Alice facility, you will expect technology to continue to grow as we move more into the cloud environment and.

Speaker #6: I'll let Lynn describe it to you. So we're all on the same page.

The others don't have as many specific drivers that I'd call out.

Speaker #14: Yeah. So certainly, this is something that we were aware of that they were going to make this application. I think it's important to note the difference between an application and a launch.

Lynne Fitzpatrick: Certainly, this is something that we were aware of, that they were going to make this application. I think it is important to note the difference between an application and a launch. Similar to the way we started an application process and it took several years to get that approval, they want to be prepared for any future changes in registration requirements or the like. This actually doesn't signify any change in our relationship or the partnership going forward. As Terry mentioned, and as you would expect, there are some contractual restrictions in terms of operating alternative venues during our partnership.

Bill Katz: Thank you.

Thank you.

Terrence Duffy: Thanks, Bill.

Thanks Bill.

Operator: Next question is from Craig Siegenthaler with Bank of America. Your line is open.

Speaker #14: So similar to the way we started an application process and it took several years to get that approval, they want to be prepared for any future changes and registration requirements or the like.

Next question is from Craig Siegenthaler with Bank of America. Your line is open.

Craig Siegenthaler: Thanks. Good morning, everyone. We were looking for an update on your prediction markets, FCM JV with FanDuel. Just given FanDuel's announcement earlier this month that they will launch a new FCM. I assume they're going to favor the new venture where they can keep 100% of profits. Are there any major differences in the offering?

Thanks, Good morning, everyone.

We were looking for an update on your prediction markets F. C. M. JV with sandal just given sandals announcement earlier this month that they will launch a new FCS so I assume theyre going to favor the new venture where they can keep 100% of profit. So are there any major differences in the offering.

Speaker #14: So this actually doesn't signify any change in our relationship or the partnership going forward. And as Terry mentioned, and as you would expect, there are some contractual restrictions in terms of operating alternative venues during our partnership.

Speaker #6: And I think that's really important, Craig. They can't just get an FCM license, apply for one, or buy one, and compete with the JV that we put together with them.

Terry Duffy: I think that's really important, Craig. They can't just get an FCM license, apply for one or buy one and compete with the JV that we put together with them. That is obviously contractually against what we originally stated with them. I think it was a bit confusing to begin with at best.

Terrence Duffy: Yeah. Thanks for the question, Craig. I think there's a bit of confusion on what they can and cannot do with that potential application process. I'll let Lynne describe it to you so if we're all on the same page.

Yeah. Thanks for the question, Craig and I think there's a bit of confusion on what they can and cannot do with that.

Potential application process I'll, let Lynn describe it to you. So we're all on the same page.

Speaker #6: That is obviously contractually against what we originally stated with them. So I think it was a bit confusing to begin with at best.

Lynne Fitzpatrick: Yeah. Certainly, this is something that we were aware of, that they were going to make this application. I think it's important to note the difference between an application and a launch. Similar to the way we started an application process, and it took several years to get that approval, they want to be prepared for any future changes in registration requirements or the like. This actually doesn't signify any change in our relationship or the partnership going forward. As Terry mentioned, and as you would expect, there are some contractual restrictions in terms of operating alternative venues during our partnership.

So certainly this is something that we were aware of that they were going to make this application I think it's important to note the difference between an application and a launch.

Speaker #13: Thanks. That's helpful. And just one follow-up on prediction markets. Any update on the DCM side and volumes where there's multiple entities hooked up to including DraftKings?

Craig Siegenthaler: Thanks. That's helpful. Just one follow-up on prediction markets. Any update on the DCM side and volumes where there's multiple entities hooked up to, including DraftKings?

So similar to the way we started an application process and it took several years to get that approval they want to be prepared for any future changes in registration requirements or the like so this actually it doesn't signify any change in our relationship or the partnership going forward and as Terry mentioned and as you would expect there are some contractual restrictions.

Speaker #6: Is there any volume update with DraftKings? I think Craig just sort of to my earlier comments when we were speaking about prediction markets, we just recently crossed the 220 million contract volume threshold since going live in back in December of 2025.

Terry Duffy: Is there any volume update with DraftKings?

Derek: No, I think, Craig, just sort of to my earlier comments when we were speaking about prediction markets, we just recently crossed the 220 million contract volume threshold since going live back in December 2025. I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in markets-based contracts across the CME Group benchmark products in equities, cryptocurrencies, energy, and metals is in excess of 30% since mid-March when we, with our partner at FanDuel, increased the marketing efforts. We've had 150,000 accounts trade at CME Group. Those are the sort of numbers-based updates for prediction markets, and we would say off to a great start and optimistic about the continued growth from here.

Derek Sammann: No, I think, Craig, just sort of to my earlier comments when we were speaking about prediction markets, we just recently crossed the 220 million contract volume threshold since going live back in December 2025. I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in markets-based contracts across the CME Group benchmark products in equities, cryptocurrencies, energy, and metals is in excess of 30% since mid-March when we, with our partner at FanDuel, increased the marketing efforts. We've had 150,000 accounts trade at CME Group. Those are the sort of numbers-based updates for prediction markets, and we would say off to a great start and optimistic about the continued growth from here.

In terms of operating alternative venues during our partnership.

Terrence Duffy: I think that's really important, Craig. They can't just get an FCM license, apply for one or buy one, and compete with the JV that we put together with them. That is obviously contractually against what we originally stated with them. I think it was a bit confusing to begin with at best.

And I think that's really important Greg they can't just get an MCM license apply for one or buy one and compete with the JV that we put together with them that is obviously contractually against.

Speaker #6: I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in market-space contracts across the CME Group benchmark products in equities, cryptocurrencies, energy, and metals is in excess of 30% since mid-March when we with our partner at Fandale increased the marketing efforts.

What we originally stated with them so.

I think it was a bit confusing to begin with that vessel.

Okay.

Craig Siegenthaler: Thanks. That's helpful. Just one follow-up on prediction markets. Any update on the DCM side and volumes where there's multiple entities hooked up to, including DraftKings?

Thanks, that's helpful and just one follow up on prediction markets.

Speaker #6: And we've had 150,000 accounts trade at CME Group. So those are the sort of numbers-based updates for prediction markets. And we would say off to a great start and optimistic about the continued growth from here.

Any update on the DCM side and volumes, where theres multiple entities hooked up to including draft Kings.

Terrence Duffy: Is there any volume update with DraftKings?

Is there any volume a pillow dressings.

Speaker #6: Craig, what I think is also important is there's a lot of activity for a lack of a better term going on around the sports prediction markets between the states and the providers.

Terry Duffy: Craig, what I think is also important is there's a lot of activity, for lack of a better term, going on around the sports prediction markets between the states and the providers. Where there's not a lot of noise, and nor should there be, is around the market event contracts or prediction markets on financial products. I think that's why we're seeing them grow. I think that's a very good sign for the future, and I think you're gonna start to see other people probably leaning that direction more than just looking at the pure sports itself. We'll have to wait and see, but I think that bodes very well for CME if in fact that goes there, because potentially the offsets you could be looking against our multiple asset classes that we have here at CME Group that others don't.

Tim: No, I think, Craig, just sort of to my earlier comments when we were speaking about prediction markets, we just recently crossed the 220 million contract volume threshold since going live back in December of 2025. I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in markets-based contracts across the CME Group benchmark products in equities, cryptocurrencies, energy, and metals is in excess of 30% since mid-March when we, with our partner at FanDuel, increased the marketing efforts, and we've had 150,000 accounts trade at CME Group. Those are the sort of numbers-based updates for prediction markets, and we would say off to a great start and optimistic about the continued growth from here.

Tim McCourt: No, I think, Craig, just sort of to my earlier comments when we were speaking about prediction markets, we just recently crossed the 220 million contract volume threshold since going live back in December of 2025. I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in markets-based contracts across the CME Group benchmark products in equities, cryptocurrencies, energy, and metals is in excess of 30% since mid-March when we, with our partner at FanDuel, increased the marketing efforts, and we've had 150,000 accounts trade at CME Group. Those are the sort of numbers-based updates for prediction markets, and we would say off to a great start and optimistic about the continued growth from here.

No I think I think.

Craig just sort of to my to my earlier comments when we're speaking about prediction markets. We just recently crossed the 220 million contract volume.

Speaker #6: Where there's not a lot of noise, and nor should there be, is around the market event contracts or prediction markets on financial products. And I think that's why we're seeing them grow.

Threshold since going live in back in December of 2025, I think the notable thing from volumes as again as we recovering is that the percentage of volume in market based contracts across the senior group benchmark products in equities crypto currencies energy and metals is in excess of 30%.

Speaker #6: And I think that's a very good sign for the future. And I think you're going to start to see other people probably leaning that direction more than just looking at the pure sports itself.

Speaker #6: So we'll have to wait and see. But I think that bodes very well for CME if, in fact, that goes there because potentially the offsets you can be looking at, again, against our multiple asset classes that we have here at CME Group that others don't.

Mid March when we with our partner at <unk> increased the marketing efforts and we've had 150000 accounts trade at CME group. So those are the sort of numbers based updates for prediction markets and we would say off to a great start and optimistic about the continued growth from here Greg. What I think is also important is there's a lot of activity for a lack of a better term.

Speaker #6: So I'm pretty interested to see how this all plays out in the future investments going into prediction markets on the sports side of the equation.

Terry Duffy: I'm pretty interested to see how this all plays out in the future investments going into prediction markets on the sports side of the equation.

Terrence Duffy: Craig, what I think is also important is there's a lot of activity, for lack of a better term, going on around the sports prediction markets between the states and the providers. Where there's not a lot of noise, and nor should there be, is around the event contracts or prediction markets on financial products, and I think that's why we're seeing them grow. I think that's a very good sign for the future, and I think you're going to start to see other people probably leaning that direction more than just looking at the pure sports itself. We'll have to wait and see, but I think that bodes very well for CME if in fact that goes there, because potentially the offsets you could be looking at against our multiple asset classes that we have here at CME Group that others don't.

I'm going on around the sports prediction markets between the states and their providers.

Speaker #13: Thanks, Terry.

Craig Siegenthaler: Thanks, Terry.

Speaker #6: Thanks, Craig.

Terry Duffy: Thanks, Greg.

Terry Duffy: Thanks, Craig.

Speaker #8: The next question is from Brian Bedell with Deutsche Bank. Your line is open.

Where theres not a lot of noise in north Sugar me is around the market event contracts, our prediction markets on financial products and I think that's why we're seeing them grow and I think that's a very good sign for the future and I think youre going to start to see.

Operator: The next question is from Brian Bedell with Deutsche Bank. Your line is open.

Speaker #15: Great. Thanks. Thanks. Good morning, folks. Thanks for taking my questions. Maybe just staying with that very line of your answer, the prediction markets. Good to see that market side rising as a mix.

Brian Bedell: Great. Thanks. Thanks. Good morning, folks. Thanks for taking my questions. Maybe just staying with that very line of your answer on the prediction markets. Good to see that market side rising as a mix of the percentage of volume. What is your view on potentially creating a company KPI types of contracts, like financial KPI contracts? I believe maybe you can weigh in on this, but I believe they, you know, you, they most likely would need to be SEC regulated. Maybe your view on any kind of timeline of that if that is something that you're interested in developing.

Other people would probably leaning that direction more than just looking at the pure supports itself. So we'll have to wait and see but I think that bodes very well for CME. If in fact that goes there because potentially the offsets you could be looking at grant against our.

Speaker #15: Of the percentage of volume. What is your view on potentially creating company KPI types of contracts like financial KPI contracts? And I know I believe maybe you can weigh in on this, but I believe they most likely need to be SEC-regulated.

Multiple asset classes that we have here at CME group that others don't so I'm I'm pretty interested to see how this all plays out in the future investments going into prediction markets on the sports out of the equation.

Terrence Duffy: I'm pretty interested to see how this all plays out in the future investments going into prediction markets on the sports side of the equation.

Speaker #15: So maybe your view on any kind of timeline of that. If that is something that is that you're interested in developing. And then also, if you could just confirm, I think the rate capture on the contracts for you guys is about a penny a contract, just wanted to confirm that.

Craig Siegenthaler: Thanks, Terry.

Brian Bedell: Also if you could just confirm, I think the rate capture on the contracts for you guys is about $0.01 a contract. Just wanted to confirm that.

Thanks Terry.

Terrence Duffy: Thanks, Craig.

Thanks, Craig.

Operator: The next question is from Brian Bedell with Deutsche Bank. Your line is open.

The next question is from Brian Bedell with Deutsche Bank. Your line is open.

Brian Bedell: Great. Thanks. Good morning, folks. Thanks for taking my question. Maybe just staying with that very line of your answer on the prediction markets. Good to see that market side rising as a mix of the percentage of volume. What is your view on potentially creating company KPI types of contracts, like financial KPI contracts? I believe, maybe you can weigh in on this, but I believe they most likely would need to be SEC regulated. Maybe your view on any kind of timeline of that, if that is something that you're interested in developing. Then also if you could just confirm, I think the capture rate on the contracts for you guys is about $0.01 a contract. Just wanted to confirm that.

Speaker #6: Okay. Thanks, Brian. So do you want to address the first on that?

Great. Thanks. Thanks, Good morning folks thanks for taking my questions, maybe just staying with that very line of of your answer on that prediction markets could you see that market side rising as a mix of the percentage of volume what is your view on potentially creating.

Terry Duffy: Okay. Thanks, Brian. Do you wanna address the first on?

Speaker #15: Yeah. Sure, Brian. Thanks for the question. We're certainly seeing a lot of interest in other economic or market-based contracts where we've seen good growth in the economic indicators, as well as the benchmark products at CME Group.

Derek: Yeah, sure. Brian, thanks for the question. We're certainly seeing a lot of interest in other economic or market-based contracts, where we've seen good growth in the economic indicators as well as the benchmark products at CME Group. I think with respect to anything that is financial or KPI or individual stock related, that is something that we continue to engage with customers on. As you noted, there are some regulatory questions and clarity required about how those products would be brought to market and what the security versus commodities-based offering might be. That's something we continue just to engage with the regulators. I'd say stay tuned on that, but no imminent plans or a path forward for those just yet.

Derek Sammann: Yeah, sure. Brian, thanks for the question. We're certainly seeing a lot of interest in other economic or market-based contracts, where we've seen good growth in the economic indicators as well as the benchmark products at CME Group. I think with respect to anything that is financial or KPI or individual stock related, that is something that we continue to engage with customers on. As you noted, there are some regulatory questions and clarity required about how those products would be brought to market and what the security versus commodities-based offering might be. That's something we continue just to engage with the regulators. I'd say stay tuned on that, but no imminent plans or a path forward for those just yet.

Speaker #15: I think with respect to anything that is financial or KPI or individual stock-related, that is something that we continue to engage with customers on.

<unk> kpis types of contracts like financial Kpis contracts and I know I believe maybe you can weigh in on this but I believe.

Speaker #15: But as you noted, there are some regulatory questions and clarity required about how those products would be brought to market and what the security versus commodities-based offering might be.

They most likely will need to be SEC regulated so maybe your view on.

Speaker #15: So that's something we continue just to engage with the regulators. So I'd say stay tuned on that, but no imminent plans or a path forward for those just yet.

On any kind of timeline of that if that is something that is that you were interested in developing and then also if you could just.

I think the recapture on the contracts for you guys is about a penny of contract just wanted to confirm that.

Speaker #14: And in terms of pricing, we don't break out entirely. There's obviously different pieces depending on where the volume comes from, either through the various channels.

Julie Winkler: In terms of pricing, you know, we don't break out entirely. There's obviously different pieces depending on where the volume comes from, either through the various channels. Obviously, the clearing and transaction fee is transparent. Again, you know, for us, this is about getting the traction with the potential customer base and getting the eyeballs in that distribution and getting kind of that community exposure to our products, which we're seeing good uptake on that right now.

Terrence Duffy: Okay, thanks, Brian. Do you want to address the first on that?

Okay. Thanks, Brian So you want to address the first.

Tim: Yeah, sure, Brian, and thanks for the question. We're certainly seeing a lot of interest in other economic or market-based contracts where we've seen good growth in the economic indicators as well as the benchmark products at CME Group. I think with respect to anything that is financial or KPI or individual stock related, that is something that we continue to engage with customers on. As you noted, there are some regulatory questions and clarity required about how those products would be brought to market and what the security versus commodities-based offering might be. That's something we continue just to engage with the regulators. I'd say stay tuned on that, but no imminent plans or a path forward for those just yet.

Tim McCourt: Yeah, sure, Brian, and thanks for the question. We're certainly seeing a lot of interest in other economic or market-based contracts where we've seen good growth in the economic indicators as well as the benchmark products at CME Group. I think with respect to anything that is financial or KPI or individual stock related, that is something that we continue to engage with customers on. As you noted, there are some regulatory questions and clarity required about how those products would be brought to market and what the security versus commodities-based offering might be. That's something we continue just to engage with the regulators. I'd say stay tuned on that, but no imminent plans or a path forward for those just yet.

Sure Brian Thanks for the question and we're certainly seeing a lot of interest in other economic or market based contracts, where we've seen good growth in the economic indicators as well as the benchmark products that CME group I think with respect to anything that is financial or Kpis are individual stock related that is something that where you continue to engage with.

Speaker #14: Obviously, the clearing and transaction fee is transparent. But again, for us, this is about getting the traction with the potential customer base and getting the eyeballs in that distribution and getting kind of that community exposure to our products, which we're seeing good uptake on that right now.

Customers on but as you noted there are some regulatory questions and clarity required about how those products will be brought to market and what the security versus commodities based offering might be so that's something we continue just to engage with the regulators I'm sorry to say stay tuned on that but no eminent plans or a path forward for those just yet.

Speaker #15: Yeah. Great. Great. And then maybe if I can ask Lynn, if you could just talk about the April collateral balances that you're seeing so far and if that's if you're still managing about a 30 basis point spread in those balances.

Brian Bedell: Yeah. Great. Great. Then maybe if I can ask Lynn, if you could just talk about the April collateral balances that you're seeing so far. If that's if you're still managing about a 30 basis point spread in those balances. Actually 10 basis points on the non-cash, I think, and 30 on the other, on the cash.

Terrence Duffy: In terms of pricing, we don't break out entirely. There's obviously different pieces depending on where the volume comes from, either through the various channels. Obviously, the clearing and transaction fee is transparent. Again, for us, this is about getting the traction with the potential customer base, and getting the eyeballs, and that distribution, and getting kind of that community exposure to our products, which we're seeing good uptake on that right now.

Lynne Fitzpatrick: In terms of pricing, we don't break out entirely. There's obviously different pieces depending on where the volume comes from, either through the various channels. Obviously, the clearing and transaction fee is transparent. Again, for us, this is about getting the traction with the potential customer base, and getting the eyeballs, and that distribution, and getting kind of that community exposure to our products, which we're seeing good uptake on that right now.

Speaker #15: I should say 30 basis point 10 basis points on the non-cash, I think, and 30 on the other. On the cash.

And then in terms of pricing, we don't break out entirely there's obviously different pieces, depending on where the volume comes from either through the various channels.

Speaker #14: Yeah. So sure, Brian. So in Q1, we did show an average of balances for cash of about 149 billion. That is up a bit so far here in April at 153 billion.

Lynne Fitzpatrick: Yeah. Sure, Brian. In Q1, we did show an average of balances for cash of about $149 billion. That is up a bit so far here in April at $153 billion. In Q1, we averaged about 33 basis points on the cash. I don't we typically don't disclose for the partial period how we're doing so far in April, but that held steady at about 33 versus last quarter. On the non-cash, in Q1, we had $171 billion on average at that 10 basis points. Far in April, we're averaging $174. Both up slightly in terms of the average balances.

The clearing and transaction fee it is transparent.

But again for US this is about getting the traction with the potential customer base and getting the eyeballs and that distribution and getting it.

Speaker #14: In Q1, we averaged about 33 basis points on the cash. I don't typically don't disclose for the partial period how we're doing so far in April, but that helps steady at about 33 versus last quarter.

And if that that community our exposure to our products, which we're seeing good uptake on that right now.

Brian Bedell: Yeah. Great. Maybe if I can ask Lynn, if you could just talk about the April collateral balances that you're seeing so far, and if you're still managing about a 30 basis point spread in those balances. Actually, 10 basis points on the non-cash, I think, and 30 on the other, on the cash.

Brian Bedell: Yeah. Great. Maybe if I can ask Lynne, if you could just talk about the April collateral balances that you're seeing so far, and if you're still managing about a 30 basis point spread in those balances. Actually, 10 basis points on the non-cash, I think, and 30 on the other, on the cash.

Okay, Great Great and then maybe if I can ask Lynn if you could just.

Speaker #14: Then on the non-cash, in Q1, we had 171 billion on average at that 10 basis points. So far in April, we're averaging 174. So both up slightly in terms of the average balances.

Talk about the April collateral balances that youre seeing so far.

And.

If thats, if youre still managing about a 30 basis point spread in those balances.

Speaker #15: Great. Thank you very much.

Brian Bedell: Great. Thank you very much.

Speaker #14: Of course.

I said 30 to 30 basis points 10 basis points on the noncash I think in theory on the other the cash yes.

Lynne Fitzpatrick: Of course.

Speaker #8: The next question in the queue is from Ashish Sudhadra with RBC Capital Markets. Your line is open.

Operator: The next question in the queue is from Ashish Sabadra with RBC Capital Markets. Your line is open.

Lynne Fitzpatrick: Yeah. Sure, Brian. In Q1, we did show an average of balances for cash of about $149 billion. That is up a bit so far here in April at $153 billion. In Q1, we averaged about 33 basis points on the cash. We typically don't disclose for the partial period how we're doing so far in April, but that held steady at about 33 versus last quarter. On the non-cash in Q1, we had $171 billion on average at that 10 basis points. So far in April, we're averaging $174 billion. Both up slightly in terms of the average balances.

Sure Brian So in Q in Q1, we did show an average balances for cash of about 149 billion that is up a bit so far here in April at 153 billion in Q1, we averaged about 33 basis points on the cash.

Speaker #16: Hey, good morning, everyone. This is Will Qi on Rishi Sudhadra. Appreciate you guys squeezing us in. Just wanted to maybe follow up on some of the comments around market data and information services.

Will Chi: Hey, good morning, everyone. This is Will Chi on for Ashish Sabadra. Appreciate you guys squeezing us in. Just wanted to maybe follow up on some of the comments around market data and information services. I think last year you guys had some data license changes in regards to the introduction of the end-of-day data category versus real-time, delayed, and historical. It seems like clients are still generally building out the infrastructure to track that data, and they've been backbilled for that charge. How much of a contributor is that license change to the market data and information services growth? Are there any other policies that we should be aware of that are notable as well?

Will Qi: Hey, good morning, everyone. This is Will Qi on for Ashish Sabadra. Appreciate you guys squeezing us in. Just wanted to maybe follow up on some of the comments around market data and information services. I think last year you guys had some data license changes in regards to the introduction of the end-of-day data category versus real-time, delayed, and historical. It seems like clients are still generally building out the infrastructure to track that data, and they've been backbilled for that charge. How much of a contributor is that license change to the market data and information services growth? Are there any other policies that we should be aware of that are notable as well?

Speaker #16: I think last year, you guys had some data license changes in regards to the introduction of the end-of-day data category versus real-time delayed and historical.

I don't.

We really don't disclose for the partial period, how we're doing so far in April but that held steady at about 33 versus last quarter and then on the noncash in Q1, we had 171 billion on average at that 10 basis points.

Speaker #16: It seems like clients are still kind of generally building out the infrastructure to kind of track that data, and they've been backbuild for that charge.

Speaker #16: How much of a contributor is that license change to the market data and information services growth? And are there any other policies that we should be aware of that are notable as well?

So far in April we're averaging 174, so both up slightly in terms of the average balances.

Brian Bedell: Great. Thank you very much.

Great. Thank you very much.

Speaker #6: Billy?

Terrence Duffy: Of course.

Lynne Fitzpatrick: Of course.

Terry Duffy: Julia?

Terry Duffy: Julie?

Right.

Speaker #14: Yeah. Thank you for the question. Certainly, that was a change in policy in part of it, right, is just to protect what we believe is the strong intellectual property of our data assets.

Operator: The next question in the queue is from Ashish Sabadra with RBC Capital Markets. Your line is open.

Julie Winkler: Yeah. Thank you for the question. You know, certainly that was a change in policy, and part of it, right, is just to protect what we believe is the strong, you know, intellectual property of our data assets and just changing business practices within the space. It has in the past and will continue to be of real-time professional subscribers being the core of that market data revenue line. While data licensing such as end-of-day is adding to the growth of the business, it is not a significant driver of that revenue that we talk about each quarter that continues to be that real-time professional subscriber. I'd say policies in general, though, I mean, this is where, you know, and Lynn mentioned it earlier, right?

The next question queues from Us as Sinatra with RBC capital markets. Your line is open.

William Qi: Hey, good morning, everyone. This is William Qi on for Ashish Sabadra. Appreciate you guys squeezing us in. Just wanted to maybe follow up on some of the comments around market data and information services. I think last year you guys had some data license changes in regards to the introduction of the end-of-day data category versus real time, delayed, and historical. It seems like clients are still kind of generally building out the infrastructure to kind of track that data, and they've been back-billed for that charge. How much of a contributor is that license change to the market data and information services growth? And are there any other policies that we should be aware of that are notable as well?

Hey, good morning, everyone. This is full Cheon Christians departure I appreciate you squeezing us in.

Speaker #14: And just changing business practices within the space. So it has in the past and will continue to be of real-time professional subscribers being the core of that market data revenue line.

Just wanted to maybe follow up on some of the comments around market data and information services I think last year you guys have some data license changes in regards to the <unk>.

Production of the <unk> data category versus real time delayed historical it seems like clients are still kind of generally building out the infrastructure gets in a trap that data and they've been billed for that charge how much of a contributor is that license change the market data and information services growth and are there any other.

Speaker #14: And so while data licensing such an end-of-day is adding to the growth of the business, it is not a significant driver of that revenue that we talk about each quarter that continues to be that real-time professional subscriber.

Speaker #14: I'd say policies in general, though. I mean, this is where and Lynn mentioned it earlier, right? There's this blend of utilizing policies, introducing things like enterprise pricing with our core partners, simulated trading environments, things like that, that we are going to continue to do terms so far is another great example of our build-out of our benchmark space.

Allison is that we should be aware about that are notable as well.

Terrence Duffy: Billy?

Terrence Duffy: Julie?

Julie.

Julie Winkler: There's this blend of utilizing policies, introducing things like enterprise pricing with our core partner simulated trading environments, things like that that we are gonna continue to do. You know, Term SOFR is another great example of our build-out of our benchmark space. These are all things that the team is actively working on as this space continues to evolve and change. You know, I think it's working given the 32 consecutive quarters of year-on-year growth. We'll continue to update you on that. I think, again, strategic and pricing related initiatives as well as new product development is gonna be a core of us continuing to drive this growth going forward.

Julie Winkler: Yeah. Thank you for the question. Certainly, that was a change in policy, and part of it is just to protect what we believe is the strong intellectual property of our data assets and just changing business practices within the space. It has in the past and will continue to be of real-time professional subscribers being the core of that market data revenue line. While data licensing such as end-of-day is adding to the growth of the business, it is not a significant driver of that revenue that we talk about each quarter that continues to be that real-time professional subscriber. I'd say policies in general, though, this is where, and Lynn mentioned it earlier, there's this blend of utilizing policies, introducing things like enterprise pricing with our core partner simulated trading environments, things like that we are going to continue to do.

Yeah. Thank you for the question.

Certainly that was a change in policy and part of it right is just to protect what we believe is a strong intellectual property of our data assets.

And just changing business practices within the space. So.

Speaker #14: So these are all things that the team is actively working on as this space continues to evolve and change. And I think it's working, given the 32 consecutive quarters of year-on-year growth.

It it has in the past and will continue to be a real time professional subscribers being the core of that market data revenue line and so while data licensing such a end of day is adding to the growth of the business. It is not a significant driver of that revenue that we talk about on each quarter that continues.

Speaker #14: So we'll continue to update you on that. But I think, again, strategic and pricing-related initiatives as well as new product development is going to be a core of us continuing to drive this growth point forward.

To me that real time professional subscriber I'd say policies in general, though I mean, this is ware and Lynn mentioned it earlier right. There's this blend of <unk>.

Will Chi: Understood. Thank you very much.

Will Qi: Understood. Thank you very much.

Speaker #16: Understood. Thank you very much.

Speaker #6: Thank you.

Terry Duffy: Thank you.

Speaker #8: And the next question in the queue is from Simon Clinch with Rothschild & Co, Redburn. Your line is open.

Operator: The next question in the queue is from Simon Clinch with Rothschild & Co Redburn, your line is open.

Utilizing policies, introducing things like enterprise pricing with our our core partner.

Speaker #17: Hi. Thanks for taking my question. I was wondering if I could just ask about BrokerTech and BrokerTech Chicago in particular. I was wanting to give us an update on how that's progressing any benefits you're seeing or also what kind of behavioral changes you're seeing across that treasury complex.

Simon Clinch: Hi. Thanks for taking my question. I was wondering if I could just ask about BrokerTec and BrokerTec Chicago in particular. I was wondering if Terry could give us an update on how that's progressing, any benefits you're seeing, or also what kind of behavioral changes you're seeing across that Treasury complex, and I guess how we might think that could impact the overall Treasury performance of BrokerTec in the future. Thanks.

Stimulated trading environments things like that that we're going to continue to do terms. So far is another great example of our build out of our benchmark space.

Julie Winkler: Term SOFR is another great example of our build-out of our benchmark space. These are all things that the team is actively working on as this space continues to evolve and change. I think it's working, given the 32 consecutive quarters of year-on-year growth. We'll continue to update you on that, but I think, again, strategic and pricing-related initiatives as well as new product development is going to be a core of us continuing to drive this growth going forward.

These are all things that the team is actively working on as the space continues to evolve and change and I think it's working given that 30 32 consecutive quarters of year on year growth. So we'll continue to update you on that but I think again strategic and pricing related initiatives as well as new product.

Speaker #17: And I guess how we might think that could impact the overall treasury performance of BrokerTech in the future. Thanks.

Speaker #6: Thanks, Simon. Mike?

Terry Duffy: Thanks, Simon. Mike?

Speaker #18: Yeah, Simon. Good morning and thanks for the question. While still early innings, adoption of BrokerTech Chicago has expanded. As clients leverage the platform's value proposition of smaller tick sizes, and colocation alongside our core futures and options markets in Aurora, what I like about BrokerTech Chicago is it gives our clients choice and execution venue depending on their trading strategy and market conditions.

[Company Representative] (CME Group): Yeah, Simon, good morning, thanks for the question. While still early innings, adoption of BrokerTec Chicago is expanding as clients leverage the platform's value proposition of smaller tick sizes and co-location alongside our core futures and options markets in Aurora. What I like about BrokerTec Chicago is it gives our clients choice and execution venue, depending on their trading strategy and market conditions. We have over 35 clients connected to the platform already, and that includes several participants from the derivative space who exclusively trade US cash treasuries on BrokerTec Chicago. ADV grew 93% month over month in March, and we saw a record day of $1.2 billion on 8 April. Additionally, we view BrokerTec Chicago as an important foundation in a larger effort to deliver unique new trading efficiencies by bringing our cash and futures markets closer together.

Mike Dennis: Yeah, Simon, good morning, thanks for the question. While still early innings, adoption of BrokerTec Chicago is expanding as clients leverage the platform's value proposition of smaller tick sizes and co-location alongside our core futures and options markets in Aurora. What I like about BrokerTec Chicago is it gives our clients choice and execution venue, depending on their trading strategy and market conditions. We have over 35 clients connected to the platform already, and that includes several participants from the derivative space who exclusively trade US cash treasuries on BrokerTec Chicago. ADV grew 93% month over month in March, and we saw a record day of $1.2 billion on 8 April. Additionally, we view BrokerTec Chicago as an important foundation in a larger effort to deliver unique new trading efficiencies by bringing our cash and futures markets closer together.

<unk> is gonna be a core of us continuing to drive this growth going forward.

William Qi: Understood. Thank you very much.

Understood. Thank you very much.

Terrence Duffy: Thank you.

Thank you.

Operator: The next question in the queue is from Simon Clinch with Rothschild & Co Redburn, your line is open.

And the next question in the queue is from assignment to clinch with Rothschild and co Redburn. Your line is open.

Simon Clinch: Hi. Thanks for taking my question. I was wondering if I could just ask about BrokerTec and BrokerTec Chicago in particular. I was wondering if Terry could give us an update on how that's progressing, any benefits you're seeing, or also what kind of behavioral changes you're seeing across that treasury complex, and I guess how we might think that could impact the overall treasury performance of BrokerTec in the future. Thanks.

Alright, Thanks for taking my question I.

Was wondering if I could just asked about.

Speaker #18: We have over 35 clients connected to the platform already, and that includes several participants from the derivative space who exclusively trade US cash treasuries on BrokerTech Chicago.

Brokerage brokerage I should call them.

It's hard to keep us an update on how thats progressing any benefits you're seeing also what kind of behavioral changes you're seeing of course thats the treasury.

Speaker #18: ADV grew 93% month over month in March, and we saw a record day of 1.2 billion on April 8th. So additionally, we view BrokerTech Chicago as an important foundation in a larger effort to deliver unique new trading efficiencies by bringing our cash and futures markets closer together.

That Turkey complex and I guess, how we might think that could impact the overall treasury performance.

Great.

Thanks.

Terrence Duffy: Thanks, Simon. Mike?

Simon Mike.

Mike: Yeah, Simon, good morning, and thanks for the question. While still early innings, adoption of BrokerTec Chicago is expanding as clients leverage the platform's value proposition of smaller tick sizes and co-location alongside our core futures and options markets in Aurora. What I like about BrokerTec Chicago is it gives our clients choice and execution venue depending on their trading strategy and market conditions. We have over 35 clients connected to the platform already, and that includes several participants from the derivatives space who exclusively trade US cash Treasuries on BrokerTec Chicago. ADV grew 93% month-over-month in March, and we saw a record day of $1.2 billion on 8 April. Additionally, we view BrokerTec Chicago as an important foundation in a larger effort to deliver unique new trading efficiencies by bringing our cash and Treasuries markets closer together.

Mike Dennis: Yeah, Simon, good morning, and thanks for the question. While still early innings, adoption of BrokerTec Chicago is expanding as clients leverage the platform's value proposition of smaller tick sizes and co-location alongside our core futures and options markets in Aurora. What I like about BrokerTec Chicago is it gives our clients choice and execution venue depending on their trading strategy and market conditions. We have over 35 clients connected to the platform already, and that includes several participants from the derivatives space who exclusively trade US cash Treasuries on BrokerTec Chicago. ADV grew 93% month-over-month in March, and we saw a record day of $1.2 billion on 8 April. Additionally, we view BrokerTec Chicago as an important foundation in a larger effort to deliver unique new trading efficiencies by bringing our cash and Treasuries markets closer together.

Yes, hi, and good morning, and thanks for the question, while still early innings of adoption of brokers like Chicago is expanding as clients leverage the platform's value proposition of smaller ticket sizes and co location, alongside our core futures and options markets and Aurora.

Speaker #18: So we're pleased with BrokerTech Chicago so far, and we'll keep you updated on new features as it progresses.

[Company Representative] (CME Group): We're pleased with BrokerTec Chicago so far, and we'll keep you updated on, you know, new features as it progresses.

Mike Dennis: We're pleased with BrokerTec Chicago so far, and we'll keep you updated on, you know, new features as it progresses.

Speaker #17: Great. Thanks for that. And just a follow-up on prediction markets. Harry, could you expand a little bit more on the I think you said 150,000 new accounts had sort of started trading on CME's platform, having come through that sort of prediction market funnel.

What I like about broker tech Chicago's that gives our clients choice and execution venue, depending on their trading strategy and market conditions. We have over 35 clients connected to the platform already and that includes several participants from the derivative space, who exclusively trade U S cash treasuries on brokers X Chicago.

Simon Clinch: Great. Thanks for that. Just to follow up on prediction markets. Terry, could you expand a little bit more about on the, I think you said 150,000 new accounts that sort of started trading on CME's platform, having come through and up to the prediction market funnel. I was wondering if you could talk about just the, you know, what you're seeing, the early behaviors of those kinds of accounts, how you think it might evolve as you sort of try and graduate those kind of customers across to the actual traditional futures and options.

Speaker #17: I was wondering if you could talk about just what you're seeing, the early behaviors of those kinds of accounts, what it how you think it might evolve as you sort of try and graduate those kinds of customers across the actual traditional futures and options.

D V grew 93% month over month in March and we saw a record day of $1 2 billion on April eight. So Additionally, we view broker Tech Chicago as an important foundation.

Speaker #6: So I'll let Tim comment, Simon, but I think when you look at those new accounts coming into trade that particular product, it's really difficult to predict what the next six months or a year is going to look like with that constituency.

In a larger effort to deliver unique new trading efficiencies by bringing our cash and futures markets closer together. So we're pleased with with broker Tech Chicago, So far and we will keep you updated on.

Terry Duffy: I'll let Tim comment, Simon, but I think, when you look at those new accounts coming in to trade that particular product, it's really difficult to, you know, predict what the next 6 months or 1 year is gonna look like with that constituency. It could be a whole new group of them. You know, the market can get a little bit stale, or it could get exciting. You just don't know what's going to happen that would drive the growth of those new accounts or take it away from it. I hate to try to make a prediction on that. I would rather try to create efficiencies for each and every client and build the business that way. I'll let Tim talk more about it.

Mike: We're pleased with BrokerTec Chicago so far, and we'll keep you updated on new features as it progresses.

Mike Dennis: We're pleased with BrokerTec Chicago so far, and we'll keep you updated on new features as it progresses.

New features as it progresses.

Simon Clinch: Great. Thanks for that. Just to follow up on prediction markets, Terry, could you expand a little bit more about on the, I think you said 150,000 new accounts that sort of started trading on CME's platform, having come through an absolute prediction market funnel. I was wondering if you could talk about just what you're seeing, the early behaviors of those kinds of accounts, how you think it might evolve as you sort of try and graduate those kind of customers across the actual traditional futures and options.

Speaker #6: It could be a whole new group of them. The market can get a little bit stale or it can get exciting. You just don't know what's going to happen that would drive the growth of those new accounts or take it away from it.

Alright, thanks for that and just a follow up on on predictions.

Prediction Wilkins.

Could you expand a little bit more about on the I think you said 150000.

New contract a new accounts that sort of started trading on CME platform haven't come through.

Speaker #6: So I hate to try to make a prediction on that. I would rather try to create efficiencies for each and every client and build the business that way.

Prediction market funnel.

I was wondering if you could talk about just what you're seeing in the behaviors of those kinds of accounts what have you.

Speaker #6: But I'll let Tim talk more about it. As I said earlier, when we originally did this deal with Vandal, it was about distribution and having people look at our products and then participating and then hopefully they would be graduating into the other parts of our industry, which we think they are and they will.

Terry Duffy: As I said earlier, when we originally did this deal with FanDuel, it was about distribution and having people look at our products and then participating, and then hopefully they would be graduating into the other parts of our industry, which we think they are and they will. To me, that's the long game here, and we are gonna continue to stay focused on the new client acquisition, as we talked about for many, many years, and this is just an extension of the new client acquisition through our FanDuel partnership. Tim, you wanna expand?

Thank you Mike.

Bob as you sort of try and graduates.

So the actual institution.

Yeah.

Terrence Duffy: I'll let Tim comment, Simon, but I think when you look at those new accounts coming in to trade that particular product, it's really difficult to predict what the next six months or a year is going to look like with that constituency. It could be a whole new group of them. The market can get a little bit stale or it could get exciting. You just don't know what's going to happen that would drive the growth of those new accounts or take it away from it. I hate to try to make a prediction on that. I would rather try to create efficiencies for each and every client and build the business that way. I'll let Tim talk more about it.

So I'll, let Tim comment some of them, but I think.

When you look at those new accounts coming in the trade that particular product.

Speaker #6: So to me, that's the long game here. And we are going to continue to stay focused on the new client acquisition as we talked about for many, many years.

It's really difficult to.

Predict what the next six months or a year is going to look like what that constituency.

Speaker #6: And this is just an extension of the new client acquisition through our Vandal partnership. Tim, you want to expand?

It could be a whole new group of them.

Speaker #18: Yeah. Thanks, Terry. I think the one thing I would expand on that is when we think about the original thesis of why we're trying to attract the next generation of trader to our markets, it's because we want to get our benchmark products and the benefits and value prop of CME Group into the traders earlier in their life cycle as a market participant.

The market can get a little bit stale or it could get exciting you just don't know what's going to happen that would drive the growth of those new accounts or take it away from it so I hate to try to make a prediction on that I would rather try to create efficiencies for each and every client and build the business that way, but I'll, let him talk more about it.

Derek: Yeah. Thanks, Terry. I think the one thing I would expand on that is when we think about the original thesis of why we are trying to attract the next generation of trader to our markets, it is because we want to get our benchmark products and the benefits and value prop of CME Group into the traders earlier in their life cycle as a market participant.

Tim McCourt: Yeah. Thanks, Terry. I think the one thing I would expand on that is when we think about the original thesis of why we are trying to attract the next generation of trader to our markets, it is because we want to get our benchmark products and the benefits and value prop of CME Group into the traders earlier in their life cycle as a market participant.

Terrence Duffy: As I said earlier, when we originally did this deal with FanDuel, it was about distribution and having people look at our products and then participating, and then hopefully they would be graduating into the other parts of our industry, which we think they are, and they will. To me, that's the long game here, and we are going to continue to stay focused on the new client acquisition, as we talked about for many, many years. This is just an extension of the new client acquisition through our FanDuel partnership. Tim, do you want to expand?

That earlier.

Speaker #18: So when we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to access some of these markets at CME Group, we were on the life cycle of perhaps a trader started in other markets, whether it was single stocks or ETFs or options, and then eventually crossed over to CME Group to open a futures account, work with our futures brokers, and start trading either full-size or micro-size contracts at CME Group.

When we originally did this deal with <unk> It was about distribution and having people look at our products and then participating and then hopefully they would be graduating into the other parts of our industry, which we think they are and they will so to me. That's S. The long game here and we're going to continue to stay focused on the new client acquisition as we talked about it.

Derek: When we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to access some of these markets at CME Group, we were on the life cycle of perhaps a trader started in other markets, whether it was single stocks or ETFs or options, and then eventually crossed over to CME Group to open a futures account, work with our futures brokers and start trading either full size or micro-sized contracts at CME Group. What's exciting, even though we don't know the exact motivation of all those 150,000 traders at CME Group, is with the smaller size, full value margin contracts, we now have the opportunity to perhaps be their first trade in the financial markets.

Tim McCourt: When we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to access some of these markets at CME Group, we were on the life cycle of perhaps a trader started in other markets, whether it was single stocks or ETFs or options, and then eventually crossed over to CME Group to open a futures account, work with our futures brokers and start trading either full size or micro-sized contracts at CME Group. What's exciting, even though we don't know the exact motivation of all those 150,000 traders at CME Group, is with the smaller size, full value margin contracts, we now have the opportunity to perhaps be their first trade in the financial markets.

For many many years and this is just an extension of the new client acquisition through our vendor partnerships and do you want to expand yes. Thanks, Terry I think the one thing I would expand on that is when we think about the the original thesis of why we're trying to attract the next generation of trade or to our markets.

Tim: Yeah. Thanks, Terry. I think the one thing I would expand on that is when we think about the original thesis of why we're trying to attract the next generation of trader to our markets, it's because we want to get our benchmark products and the benefits and value prop of CME Group into the traders earlier in their life cycle as a market participant.

Tim McCourt: Yeah. Thanks, Terry. I think the one thing I would expand on that is when we think about the original thesis of why we're trying to attract the next generation of trader to our markets, it's because we want to get our benchmark products and the benefits and value prop of CME Group into the traders earlier in their life cycle as a market participant.

Speaker #18: What's exciting, though we don't know the exact motivation of all those 150,000 traders at CME Group, is with the smaller size full value margin contracts, we now have the opportunity to perhaps be their first trade in the financial markets.

We want to get our benchmark products and the benefits and value prop of CME group into the traders earlier in their lifecycle as a market participant. So when we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to add.

Speaker #18: And that is something that is evolving and transformational for our opportunity here at CME Group that we can meet these clients earlier in their journey and then, as you noted, Simon, once they are then in the ecosystem of CME Group, we're optimistic they will look at other products, but hard to say exactly what that graduation or life cycle will look like.

Derek: That is something that is evolving and transformational for our opportunity here at CME Group, that we can meet these clients earlier in their journey. Then, as you noted, Simon, once they are then in the ecosystem of the CME Group, we're optimistic they will look at other products, but hard to say exactly what that graduation or life cycle will look like. Capturing them earlier in that journey is one of the things that we find attractive about this opportunity, and it's great to see that bear fruit this early on in the endeavor.

Tim McCourt: That is something that is evolving and transformational for our opportunity here at CME Group, that we can meet these clients earlier in their journey. Then, as you noted, Simon, once they are then in the ecosystem of the CME Group, we're optimistic they will look at other products, but hard to say exactly what that graduation or life cycle will look like. Capturing them earlier in that journey is one of the things that we find attractive about this opportunity, and it's great to see that bear fruit this early on in the endeavor.

Julie Winkler: When we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to access some of these markets at CME Group, we were on the life cycle of perhaps a trader started in other markets, whether it was single stocks or ETFs or options, and then eventually crossed over to CME Group to open a futures account, work with our futures brokers and start trading either full-size or micro-size contracts at CME Group. What's exciting, even though we don't know the exact motivation of all those 150,000 traders at CME Group, is with the smaller size, full value margin contracts, we now have the opportunity to perhaps be their first trade in the financial markets.

Tim McCourt: When we think about what is exciting about the prediction markets is prior to the introduction of the full value margin event contracts that make it easier to access some of these markets at CME Group, we were on the life cycle of perhaps a trader started in other markets, whether it was single stocks or ETFs or options, and then eventually crossed over to CME Group to open a futures account, work with our futures brokers and start trading either full-size or micro-size contracts at CME Group. What's exciting, even though we don't know the exact motivation of all those 150,000 traders at CME Group, is with the smaller size, full value margin contracts, we now have the opportunity to perhaps be their first trade in the financial markets.

Some of these markets that CME group, we were we were on the lifecycle of a perhaps a trader started in other markets, whether it was single stock or Etfs or options and then eventually cross over to CME group to open a futures account work of our futures brokers and start trading either full size or micro sized contracts at CME group, what's exciting, though we don't know the exact moat.

Speaker #18: But capturing them earlier in that journey is one of the things that we find attractive about this opportunity. And it's great to see that bear fruit this early on in the endeavor.

Speaker #17: Thanks. That's great color. Thank you very much.

Simon Clinch: Thanks. That's great color. Thank you very much.

Speaker #6: Thank you.

Terry Duffy: Thank you.

Speaker #8: And the next question in the queue is from Chris Allen with KBW. Your line is open.

Operator: The next question in the queue is from Chris Allen with KBW. Your line is open.

<unk> of all of those 150000 traders that CME group is with the smaller sized full value margin contracts. We now have the opportunity to perhaps be their first trade in the financial markets and that is something that is evolving and transformational for our opportunity here at CME group that we can meet these clients earlier in their journey.

Speaker #19: Good morning, everyone. Thanks for squeezing me in. Just a quick one, following up on the capital, discussion from earlier. I just want to ask about the buyback philosophy.

Chris Allen: Morning, everyone. Thanks for squeezing me in. Just a quick one, following up on the capital discussion from earlier. Just wanna ask about the buyback philosophy. The buyback level doubled this quarter versus the prior quarter, even with the stock improving materially this quarter. I'm just kinda curious how you're thinking about it. Is you view it as an opportunistic buyback, or is there anything related to the preferred conversion to common shares? Any color there would be helpful.

Speaker #19: So the buyback level has doubled this quarter versus the prior quarter. Even with the stock improving materially this quarter. So just kind of curious how you're thinking about it from a does you view it as an opportunistic buyback, or is there anything related to the preferred conversion to a common shares?

Tim: That is something that is evolving and transformational for our opportunity here at CME Group, that we can meet these clients earlier in their journey. Then, as you noted, Simon, once they are then in the ecosystem of the CME Group, we're optimistic they will look at other products, but hard to say exactly what that graduation or life cycle will look like. Capturing them earlier in that journey is one of the things that we find attractive about this opportunity, and it's great to see that bear fruit this early on in the endeavor.

And then as you noted Simon once there then in the ecosystem. The CME group were optimistic they will look at other products, but hard to say exactly what that graduation, or lifecycle will look like a capturing them earlier in that journey as one of the things that we find attractive about this opportunity and its great to see that bear fruit. This early on in the endeavor.

Speaker #19: Any color there would be helpful.

Speaker #6: Thanks, Chris. Lynn?

Speaker #20: Yeah, sure. So Chris, one thing that you are seeing is we did comment that we will be using the Ostra Proceeds and putting those to work in the repurchase.

Terry Duffy: Thanks, Chris. Lynne?

Lynne Fitzpatrick: Yeah, sure. Chris, one thing that you are seeing is we did comment that we will be using the OSTTRA proceeds and putting those to work in the repurchase. We will continue to be opportunistic with repurchases, but we also will be using that $1.55 billion that we received from the OSTTRA sale and putting that towards repurchases. Between last quarter and this quarter, we've completed about half of that.

Simon Clinch: Thanks. That's great color. Thank you very much.

Thanks, that's great color. Thank you very much.

Terrence Duffy: Thank you.

Speaker #20: So we will continue to be opportunistic with repurchases, but we also will be using that 1.55 billion that we received from the Ostra sale and putting that towards repurchases.

Thank you.

Operator: The next question in the queue is from Chris Allen with KBW. Your line is open.

And the next question in queue is from Chris Allen with K B W. Your line is open.

Chris Allen: Yeah, morning, everyone. Thanks for squeezing me in. Just a quick one following up on the capital discussion from earlier. Just want to ask about the buyback philosophy. The buyback levels doubled this quarter versus the prior quarter, even with the stock improving materially this quarter. I'm just kind of curious how you're thinking about it from a. You view it as an opportunistic buyback, or is there anything related to the preferred conversion to common shares? Any color there would be helpful.

Good morning, everyone. Thanks for squeezing me in just a just a quick one following up on the capital discussion from earlier just wanted to ask about the buyback philosophy.

Speaker #20: So between last quarter and this quarter, we've completed about half of that. So we had about 758 million remaining in cash from the Ostra Proceeds at the end of Q1.

So the buyback level doubled this quarter versus the prior quarter, even with the stock are improving materially this quarter. So I'm just kind of curious how you're thinking about it from us.

Lynne Fitzpatrick: We had about $758 million remaining in cash from the OSTTRA proceeds at the end of Q1.

Speaker #8: Cool. Thanks.

Michael Cyprys: Cool. Thanks.

Chris Allen: Cool. Thanks.

Speaker #20: Sure.

As you use it as an opportunity opportunistic buyback or is it there's or anything related to the preferred conversion to common shares any color there would be helpful.

Speaker #6: Thanks, Chris.

Lynne Fitzpatrick: Sure.

Terry Duffy: Thanks, Chris.

Speaker #8: And the last question in the queue is from Michael Cyprus with Morgan Stanley. Your line is open.

Operator: The last question in the queue is from Michael Cyprys with Morgan Stanley. Your line is open.

Speaker #21: Oh, thanks for taking the follow-up. I just hoping to circle back to the cross-marketing where you see the regulatory approval to launch the expanded treasury cross-marketing to end clients.

Terrence Duffy: Thanks, Chris. Lynn?

Terrence Duffy: Thanks, Chris. Lynne?

Michael Cyprys: Thanks for taking the follow-up. I was just hoping to circle back to the cross margining, where you seek the regulatory approval to launch the expanded Treasury cross margining to end clients in the coming weeks. I was hoping to help quantify the impact of that in terms of added margin, collateral efficiency for customers, how you see the scope for expanded client engagement, velocity, what that path might look like.

Thanks, Chris.

Sure. So Chris one thing that you are.

We're seeing as we did comment that we will be using the oster proceeds and putting those to work in in the repurchase. So we will continue to be opportunistic with repurchases, but we also will be using that 155 billion that we received from the Astra sale and putting that towards repurchases so between last quarter and this quarter.

Speaker #21: In the coming weeks, I was hoping you could help quantify the impact of that in terms of added margin and collateral efficiency for customers, how you see the scope for expanded client engagement.

Speaker #21: Velocity, what that path might look like.

Speaker #6: That's a good question, Mike. And I don't know if we're going to have complete visibility into what it's going to look like ultimately, but we are excited by the beginning of it.

Terry Duffy: That's a good question, Mike. I don't know if we're gonna have complete visibility into what it's gonna look like ultimately, but we are excited by the beginning of it. I'll let Suzanne talk about from her end, what she's seeing.

We've completed about half of that so we had about $758 million remaining in cash from the Oster proceeds at the end of Q1.

Speaker #6: Now, that's his end. Talk about from her end what she's seeing.

Speaker #20: Yeah. Yeah. Thanks for the question. We are excited to be bringing those two big liquidity pools together in the interest rate space. We think that just as we've seen in the House program, we do have the ability to offer a pretty compelling savings between the two clearinghouses.

Suzanne Sprague: Yeah. Yeah, thanks for the question. We are excited to be bringing those two big liquidity pools together in the interest rate space. We think that just as we've seen in the house program, we do have the ability to offer pretty compelling savings between the two clearing houses. We anticipate the savings can be upward of 80% for the client books, just like we've seen on the house side of the program today. We are at about 22 clearing members today that have signed the agreements for the house program. Although we've just announced the approval, we do already have one clearing member that signed the agreement for the customer program scheduled to go live at the end of this month and are engaging with a number of other clearing members to offer the client program as well.

Chris Allen: Cool. Thanks.

Thanks.

Suzanne Sprague: Sure.

Lynne Fitzpatrick: Sure.

Terrence Duffy: Thanks, Chris.

Sure. Thanks, Chris.

Operator: The last question in the queue is from Michael Cyprys with Morgan Stanley. Your line is open.

And the last question in the queue is from Michael Cyprus with Morgan Stanley. Your line is open.

Speaker #20: We anticipate the savings can be upward of 80% for the client book, just like we've seen on the House side of the program today.

Michael Cyprys: Oh, thanks for taking the follow-up. I'm just hoping to circle back to the cross-margining, where you seek the regulatory approval to launch the expanded Treasury cross-margining to end clients in the coming weeks. I was hoping to help quantify the impact of that in terms of added margin, collateral efficiency for customers, how you see the scope for expanded client engagement, velocity, what that path might look like.

Hi, Thanks for taking the follow up I, just hoping to circle back to the cross margining or are you seeking regulatory approval to launch the expanded Treasury cross margining and clients in the coming weeks I was hoping to help quantify the impact.

Speaker #20: We are at about 22 clearing members today. That have signed the agreements for the House program. And although we've just announced the approval, we do already have one clearing member that signed the agreement for the customer program scheduled to go live at the end of this month.

Of that in terms of added margin collateral efficiency for customers. How you see the scope for an expanded client engagement philosophy, what that path might look like.

Speaker #20: And our engaging with a number of other clearing members to offer the client program as well. So hard to speculate on the dollar savings, but we do anticipate the ramp-up will be similar to what we saw on the House side and that we'll be able to deliver significant savings for customers, just like we have so far on the House program.

Terrence Duffy: That's a good question, Mike, and I don't know if we're going to have complete visibility into what it's going to look like ultimately, but we are excited by the beginning of it. I'll let Suzanne talk about from her end what she's seeing.

Well that's a good question, Mike and I don't know if were going to have complete visibility into what it's going to look like ultimately, but we are excited by the beginning of it and I'll, let Suzanne of a lot from her anguish using yeah. Yeah. Thanks for the question. We are excited to be bringing those two big liquidity pools together in the interest rate space. We think that just as we've seen in our house program, we do have the ability.

Suzanne Sprague: Hard to speculate on the dollar savings, but we do anticipate the ramp-up will be similar to what we saw on the house side, and that we'll be able to deliver significant savings for customers just like we have so far on the house program.

Suzanne Sprague: Yeah. Thanks for the question. We are excited to be bringing those two big liquidity pools together in the interest rate space. We think that just as we've seen in the house program, we do have the ability to offer pretty compelling savings between the two clearing houses. We anticipate the savings can be upward of 80% for the client books, just like we've seen on the house side of the program today. We are at about 22 clearing members today that have signed the agreements for the house program. Although we've just announced the approval, we do already have 1 clearing member that signed the agreement for the customer program scheduled to go live at the end of this month and are engaging with a number of other clearing members to offer the client program as well.

Speaker #20: And I would just add that this is a unique benefit that they're able to get those offsets between their activity at CME and at FICC.

Lynne Fitzpatrick: I would just add that this is a unique benefit that they're able to get those offsets between their activity at CME and at FICC. It does help reinforce the value proposition of our offering.

To offer a pretty compelling savings between the two clearing houses we.

Speaker #20: So it does help reinforce the value proposition of our offering.

The savings can be upwards of 80% for the client book just like we've seen on the house side of the program today.

Speaker #21: And what were the savings on the House side?

Michael Cyprys: What were the savings on the house side?

Speaker #20: Max savings have been about 1.5 billion. Average daily is closer to just over 1 billion.

Suzanne Sprague: It, max savings have been about $1.5 billion. Average daily is closer to just over $1 billion.

We are at about 22 clearing members today that have signed the agreements for the house program and although we've just announced the approval. We do already have one clearing member that signed the agreement for the customer program is scheduled to go live at the end of this month and are engaging with a number of other clearing members to offer in the client program as well so hard.

Speaker #8: Great. Thanks so much.

Michael Cyprys: Great. Thanks so much.

Speaker #6: Thanks, Mike.

Terry Duffy: Thanks, Mike.

Speaker #8: And showing no further questions, I will now turn the call back over to management.

Operator: Showing no further questions, I will now turn the call back over to management.

Speaker #6: Well, thank you. Our record-breaking start to 2026 underscores the importance of our risk management ecosystem. I want to harp on one thing that Lynn talked about earlier.

Terry Duffy: Well, thank you. Our record-breaking start to 2026 underscores the importance of our risk management ecosystem. I wanna harp on one thing that Lynne talked about earlier. We have continued to grow this business exponentially, grow the client base, globally, and bring more participants in here to mitigate and manage risk. The rate per contract is always something that's difficult to figure out. I think when you look at that, you need to focus on that just a little bit more as we continue to grow our business, because we actually think this is a really good thing as we continue to grow. This is not new.

Suzanne Sprague: It's hard to speculate on the dollar savings, but we do anticipate the ramp-up will be similar to what we saw on the house side, and that we'll be able to deliver significant savings for customers, just like we have so far on the house program.

To speculate on the dollar savings, but we do anticipate that ramp up will be similar to what we saw on the health side and that will be able to deliver significant savings for our customers just like we have so far on the house program.

Speaker #6: We have continued to grow this business exponentially, grow to client base globally, and bring more participants in here to mitigate and manage risk. The rate per contract is always something that's difficult in order to figure out, and I think when you look at that, you need to focus on that just a little bit more as we continue to grow our business because we actually think this is a really good thing as we continue to grow.

Tim: I would just add that this is a unique benefit that they're able to get those offsets between their activity at CME and at FICC. It does help reinforce the value proposition of our offering.

I would just add that this is a unique benefit that theyre able to get those offsets between their activity at CME and Oh I see so it does help reinforce the value proposition of our offering.

Michael Cyprys: What were the savings on the house side?

And what were the savings on the outside.

Suzanne Sprague: The max savings have been about $1.5 billion. Average daily is closer to just over $1 billion.

Okay.

<unk> savings have been about $1 5 billion average daily is closer to just over $1 billion.

Speaker #6: So this is not new. We're growing the business, and we're really excited by that because it allows multiple participants to continue to grow their business here at CME and pay a price that makes sense for them and for us and for, more importantly, for you.

Terry Duffy: We're growing the business, we're really excited by that because it allows multiple participants to continue to grow their business here at CME and pay a price that makes sense for them and for us and for, more importantly, for you. We're seeing unprecedented engagement across all of our global asset classes today. We remain focused on discipline, execution, and delivering superior value to our shareholders. Once again, I want to thank you all for joining this call today.

Michael Cyprys: Great. Thanks so much.

Great. Thanks, so much.

Terrence Duffy: Thanks, Mike.

Thanks, Mike.

Operator: Showing no further questions, I will now turn the call back over to management.

Yeah.

Operator: Showing no further questions, I will now turn the call back over to management.

And showing no further questions I will now turn the call back over to management.

Terrence Duffy: Well, thank you. Our record-breaking start to 2026 underscores the importance of our risk management ecosystem. I want to harp on one thing that Lynne talked about earlier. We have continued to grow this business exponentially, grow the client base globally, and bring more participants in here to mitigate and manage risk. The rate per contract is always something that's difficult to figure out, and I think when you look at that, you need to focus on that just a little bit more as we continue to grow our business, because we actually think this is a really good thing as we continue to grow. This is not new.

Speaker #6: And we're seeing unprecedented engagement across all of our global asset classes today. We remain focused on discipline, execution, and delivering superior value to our shareholders once again.

Thank you our record breaking start to 2026.

Underscores the importance of our risk management ecosystem I want to harp on one thing that Lynn talked about earlier we.

Speaker #6: I want to thank you all for joining this call today.

We have continued to grow this business exponentially grow the client base.

Globally and bring more participants in here to mitigate and manage risk.

Operator: This concludes today's call. Thank you for your participation. You may disconnect at this time.

Rate per contract is always something that's difficult.

Figure out and I and I think when you look at that you need to focus on that just a little bit more as we continue to grow our business because we actually think this is a really good thing as we continue to grow. So this is not new we're growing the business and we're really excited about that because it allows multiple participants to continue to grow their business here at CME and pay a price.

Terrence Duffy: We're growing the business and we're really excited by that because it allows multiple participants to continue to grow their business here at CME and pay a price that makes sense for them and for us and for, more importantly, for you. We're seeing unprecedented engagement across all of our global asset classes today. We remain focused on discipline, execution, and delivering superior value to our shareholders. Once again, I want to thank you all for joining this call today.

That makes sense for them and for us and but more importantly for you and we're seeing unprecedented and engagement across all of our global asset classes. Today, we remain focused on disciplined execution and delivering superior value to our shareholders. Once again I want to thank you all for joining this call today.

Operator: This concludes today's call. Thank you for your participation. You may disconnect at this time.

This concludes today's call. Thank you for your participation you may disconnect at this time.

Q1 2026 CME Group Inc Earnings Call

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