CME Group Inc.

04/24/2026 | Press release | Distributed by Public on 04/24/2026 12:39

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion is provided as a supplement to, and should be read in conjunction with, the accompanying unaudited consolidated financial statements and notes in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026.
References in this discussion and analysis to "we" and "our" are to CME Group Inc. (CME Group) and its consolidated subsidiaries, collectively. References to "exchange" are to Chicago Mercantile Exchange Inc. (CME), the Board of Trade of the City of Chicago, Inc. (CBOT), New York Mercantile Exchange, Inc. (NYMEX), and Commodity Exchange, Inc. (COMEX), collectively, unless otherwise noted.
RESULTS OF OPERATIONS
Financial Highlights
The following summarizes significant changes in our financial performance for the periods presented.
Quarter Ended
March 31,
(dollars in millions, except per share data) 2026 2025 Change
Total revenues $ 1,880.1 $ 1,642.3 14 %
Total expenses 570.4 534.3 7
Operating margin 69.7 % 67.5 %
Non-operating income (expense) $ 201.2 $ 136.8 47
Effective tax rate 23.6 % 23.2 %
Net income $ 1,154.3 $ 956.2 21
Diluted earnings per common share 3.18 2.62 21
Cash flows from operating activities 1,259.9 1,116.6 13
Revenues
Quarter Ended
March 31,
(dollars in millions) 2026 2025 Change
Clearing and transaction fees $ 1,542.6 $ 1,337.3 15 %
Market data and information services 224.1 194.5 15
Other 113.4 110.5 3
Total Revenues $ 1,880.1 $ 1,642.3 14
Clearing and Transaction Fees
Futures and Options Contracts
The following table summarizes our total contract volume, revenue and average rate per contract for futures and options. Total contract volume includes contracts that are traded on our exchange and cleared through our clearing house and certain cleared-only contracts. Volume is measured in round turns, which is considered a completed transaction that involves a purchase and an offsetting sale of a contract. Average rate per contract is determined by dividing total clearing and transaction fees by total contract volume. Contract volume and average rate per contract disclosures below exclude trading volume for event contracts, the cash markets business as well as interest rate swaps.
Quarter Ended
March 31,
2026 2025 Change
Total contract volume (in millions)
2,210.1 1,815.8 22 %
Clearing and transaction fees (in millions)
$ 1,443.2 $ 1,245.5 16
Average rate per contract $ 0.652 $ 0.686 (5)
We estimate the following net changes in clearing and transaction fees based on the changes in total contract volume and the change in average rate per contract for futures and options during the first quarter of 2026 when compared with the same period in 2025.
(in millions) Quarter Ended
Increase due to change in total contract volume $ 257.5
Decrease due to change in average rate per contract (59.8)
Net increase in clearing and transaction fees $ 197.7
Average rate per contract is impacted by our rate structure, including volume-based incentives; product mix; trading venue; and the percentage of volume executed by customers who are members compared with non-member customers. Due to the relationship between average rate per contract and contract volume, the change in clearing and transaction fees attributable to changes in each is only an approximation.
Contract Volume
The following table summarizes average daily contract volume. Contract volume can be influenced by many factors, including political and economic conditions, the regulatory environment and market competition.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
Average Daily Volume by Product Line:
Interest rates 18,674 15,029 24 %
Equity indexes 8,655 7,997 8
Foreign exchange 1,193 1,149 4
Energy 3,985 2,903 37
Agricultural commodities 2,042 1,958 4
Metals 1,682 732 130
Aggregate average daily volume 36,231 29,768 22
Average Daily Volume by Venue:
CME Globex 33,633 27,733 21
Open outcry 1,241 881 41
Privately negotiated 1,357 1,154 18
Aggregate average daily volume 36,231 29,768 22
Electronic Volume as a Percentage of Total Volume 93 % 93 %
Market uncertainty remained high throughout the first quarter of 2026. Each of our asset classes experienced significant volatility as a result of the heightened geopolitical conflict in the Middle East, which has caused a ripple effect throughout the world economy. This resulted in uncertainty surrounding the United States Federal Reserve's (Federal Reserve) interest rate policy decision and market volatility within the equity and foreign exchange markets. In addition, uncertainty remained high within the energy and metals markets as the Middle East conflict caused significant supply disruptions and led market participants to turn to precious metals amid this uncertainty. We believe these factors contributed to an increase in volume in the first quarter of 2026 when compared with the same period in 2025.
Interest Rate Products
The following table summarizes average daily contract volume for our key interest rate products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
SOFR futures and options:
Futures expiring within two years 4,002 2,929 37 %
Options 2,016 1,340 50
Futures expiring beyond two years 1,447 1,152 26
U.S. Treasury futures and options:
10-Year
4,210 3,772 12
5-Year
2,566 2,195 17
2-Year
1,548 1,142 36
Treasury Bond
912 803 14
Ultra T-Note 893 818 9
Ultra T-Bond
509 436 17
Federal Funds futures and options 527 401 31
In the first quarter of 2026, interest rate contract volume was higher compared with the same period in 2025 due to an increase in market volatility. We believe this was due to the heightened geopolitical conflict in the Middle East. This led to uncertainty surrounding the Federal Reserve's future interest rate policy decisions. We believe these factors contributed to higher overall interest rate volume in the first quarter of 2026 when compared with the same period in 2025.
Equity Index and Cryptocurrency Products
The following table summarizes average daily contract volume for our key equity index and cryptocurrency products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
E-mini S&P 500 futures and options
4,674 4,522 3 %
E-mini Nasdaq 100 futures and options
2,794 2,592 8
E-mini Russell 2000 futures and options
401 300 33
E-mini Dow futures and options
308 260 19
Bitcoin futures and options 168 104 62
Ether futures and options 123 94 31
Equity index contract volume increased in the first quarter of 2026 when compared with the same period in 2025 due to higher overall volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which caused significant uncertainty throughout the equity markets. In addition, a market shift out of the Nasdaq-100 into the smaller cap Russell 2000 resulted in additional volume in that complex.
Our cryptocurrency contract volume was higher in the first quarter of 2026 with the same period in 2025. We believe this was due to increased volatility, which resulted in a broader cryptocurrency market repricing.
We believe these factors contributed to higher overall equity index and cryptocurrency volumes in the first quarter of 2026 when compared with the same period in 2025.
Foreign Exchange Products
The following table summarizes average daily contract volume for our key foreign exchange products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
Euro 291 301 (3) %
Japanese Yen 210 208 1
Australian dollar 164 114 44
British Pound 133 128 4
Canadian dollar 96 132 (28)
In the first quarter of 2026, overall foreign exchange volume increased when compared with the same period in 2025 mainly due to the heightened geopolitical conflict in the Middle East. This led to higher Australian dollar contract volume due to uncertainty in the commodities and energy markets. In addition, increased adoption of our foreign exchange products by market participants also contributed to the increase in foreign exchange volume. We believe these factors contributed to higher overall foreign exchange contract volume in the first quarter of 2026 when compared with the same period in 2025.
Energy Products
The following table summarizes average daily contract volume for our key energy products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
WTI crude oil 2,066 1,224 69 %
Natural gas 1,081 1,072 1
Refined products 517 424 22
Brent crude oil 301 158 91
Energy contract volume increased in the first quarter of 2026 when compared with the same period in 2025, which we believe was due to the heightened geopolitical conflict in the Middle East. The conflict in the Middle East disrupted crucial supply chain routes, which created higher uncertainty within the crude oil markets. In addition, there was heightened price volatility within the refined products markets due to a shift in supplies as global fuel supplies were at historic lows. We believe these factors contributed to higher overall energy volume in the first quarter of 2026 compared with the same period in 2025.
Agricultural Commodity Products
The following table summarizes average daily contract volume for our key agricultural commodity products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
Corn 588 669 (12) %
Soybean 418 383 9
Wheat 297 266 12
Overall commodity contract volume increased in the first quarter of 2026 when compared with the same period in 2025. We believe the increase was due to higher overall market volatility as a result of the heightened geopolitical conflict in the Middle East, which caused disruptions within the grain market supply routes. In addition, the conflict within the Middle East also caused a greater demand for crop-based fuels as a result of crude oil pricing uncertainties. We believe these factors contributed to higher overall commodity volume in the first quarter of 2026 compared with the same period in 2025.
Metal Products
The following table summarizes average daily volume for our key metal products.
Quarter Ended
March 31,
(amounts in thousands) 2026 2025 Change
Gold 1,094 469 133 %
Silver 405 102 n.m.
Copper 131 112 16
_________
n.m. not meaningful
In the first quarter of 2026, overall metal contract volume increased when compared with the same period in 2025. We believe silver and gold volume increased as a result of higher price volatility due to the heightened geopolitical conflict in the Middle East. This led market participants to use silver and gold as safe-haven alternative investments amid this uncertainty. In addition, the growth in volume was due to the increased use of precious metals micro contracts by our retail client base. We believe these factors contributed to higher overall metals volume in the first quarter of 2026 compared with the same period in 2025.
Average Rate per Contract
The average rate per contract decreased in the first quarter of 2026 when compared with the same period in 2025. The decrease was largely due to an increase in micro contract volume, specifically within equities, energy and metals, as these typically have a lower average rate per contract. This was partially offset by a change in product mix. Energy and metal contract volume increased by 3 percentage points as a percent of total volume, while other products collectively decreased by 3 percentage points. In general, energy and metals products have a higher rate per contract compared with the remaining contracts.
Cash Markets Business
Total clearing and transaction fees revenues in the first quarter of 2026 include $76.6 million of transaction fees attributable to the cash markets business, compared with $71.0 million in the first quarter of 2025. This revenue includes BrokerTec Americas LLC's fixed income volume and EBS's foreign exchange volume.
Quarter Ended
March 31,
(amounts in millions) 2026 2025 Change
BrokerTec fixed income transaction fees $ 40.2 $ 35.9 12 %
EBS foreign exchange transaction fees 36.4 35.1 4
The related average daily notional value for the first quarter of 2026 and 2025 were as follows:
Quarter Ended
March 31,
(amounts in billions) 2026 2025 Change
U.S. Repo $ 393.2 $ 331.5 19 %
European Repo (in euros) 368.2 325.8 13
U.S. Treasury 107.9 111.7 (3)
Spot FX 76.8 70.9 8
Overall average daily notional values for the cash markets business were higher in the first quarter of 2026 when compared with the same period in 2025 due to higher overall volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which caused significant macro-economic uncertainty throughout the global economy.
Concentration of Revenue
We bill a substantial portion of our clearing and transaction fees directly to our clearing firms. The majority of clearing and transaction fees received from clearing firms represent charges for trades executed and cleared on behalf of their customers. One individual firm represented at least 10% of our clearing and transaction fees in the first quarter of 2026. Should a clearing firm withdraw, we believe that the customer portion of the firm's trading activity would likely transfer to another clearing firm of the exchange. Therefore, we do not believe we are exposed to significant risk from the ongoing loss of revenue received from or through a particular clearing firm.
Other Sources of Revenue
Market data and information services. During the first quarter of 2026, overall market data and information services revenues increased when compared with the same period in 2025, largely due to higher usage of certain products, increased demand by new customer segments, and price increases for certain products.
The two largest resellers of our market data represented approximately 26% of our market data and information services revenue in the first quarter of 2026. Despite this concentration, we consider exposure to significant risk of revenue loss to be minimal. In the event that one of these vendors no longer subscribes to our market data, we believe the majority of that vendor's customers would likely subscribe to our market data through another reseller. Additionally, several of our largest institutional customers that utilize services from our two largest resellers report usage and remit payment of their fees directly to us.
Expenses
Quarter Ended
March 31,
(dollars in millions) 2026 2025 Change
Compensation and benefits $ 223.0 $ 206.7 8 %
Technology 76.6 65.7 17
Professional fees and outside services 28.2 28.5 (1)
Amortization of purchased intangibles 56.1 55.2 2
Depreciation and amortization 27.2 27.3 -
Licensing and other fee agreements 106.8 96.6 11
Other 52.5 54.3 (3)
Total Expenses $ 570.4 $ 534.3 7
Operating expenses increased by $36.1 million in the first quarter of 2026 when compared with the same periods in 2025. The following table shows the estimated impacts of key factors resulting in the changes in operating expenses:
Quarter Ended
March 31,
Amount of
Change 		Change as a
Percentage of
Total Expenses
(dollars in millions)
Salaries, benefits and employer taxes $ 10.3 2 %
License fees 10.2 2
Technology support services 9.6 1
Employee separation and restructuring 2.9 1
Marketing expenses 2.6 1
Rent expense 2.5 1
Currency fluctuation (3.2) (1)
Other expenses, net 1.2 -
Total increase $ 36.1 7 %
Increases in operating expenses in the first quarter of 2026 when compared with the same period in 2025 were as follows:
•Salaries, benefits and employer taxes expense was higher as a result of salary increases that went into effect during the first quarter of 2026 as well as an increase in headcount, which was primarily attributable to additional headcount in the company's international locations.
•License fees expense was higher primarily due to record volumes for certain equity products as well as the addition of multiple new products which launched subsequent to the first quarter of 2025.
•The increase in technology support services expense was primarily driven by higher third party services to support the ongoing Google Cloud transformation project.
•Employee separation and restructuring expense was higher during the first quarter of 2026 as a result of a restructuring effort across multiple divisions of the company.
•Marketing expense increased as a result of higher sponsorship and event costs in the first quarter of 2026.
•Rent expense was higher primarily due to a gain on lease contraction recognized in the first quarter of 2025.
Decreases in operating expense in the first quarter of 2026 when compared with the same period in 2025 were as follows:
•In the first quarter of 2026, we recognized a net gain of $0.9 million, compared with a net loss of $2.3 million during the same period in 2025, due to currency exchange rate fluctuations. Gains and losses from exchange rate fluctuations are recognized in the consolidated statements of net income when subsidiaries with a U.S. dollar functional currency hold certain monetary assets and liabilities denominated in foreign currencies.
Non-Operating Income (Expense)
Quarter Ended
March 31,
(dollars in millions) 2026 2025 Change
Investment income $ 1,389.3 $ 892.7 56 %
Interest and other borrowing costs (43.6) (41.7) 4 %
Equity in net earnings of unconsolidated subsidiaries 102.4 88.2 16
Other non-operating income (expense) (1,246.9) (802.4) 55
Total Non-Operating $ 201.2 $ 136.8 47
Investment income. Earnings from cash performance bond and guaranty fund contributions that are reinvested increased in the first quarter of 2026 when compared with the same period in 2025 due to higher reinvestment balances despite decreases in the average rate of return on the reinvestment balances. In the first quarter of 2026 and 2025, earnings from cash performance bond and guaranty fund contributions were $1,371.1 million and $873.6 million, respectively. The increase was partially offset by higher net unrealized losses in the first quarter of 2026.
Equity in net earnings (losses) of unconsolidated subsidiaries. Higher income generated from our S&P Dow Jones Indices LLC business venture contributed to increases in equity in net earnings (losses) of unconsolidated subsidiaries in the first quarter of 2026 when compared with 2025.
Other non-operating income (expense). We recognized higher expenses related to the distribution of interest earned on performance bond collateral reinvestments to the clearing firms during the first quarter of 2026 when compared with the same period in 2025. In the first quarter of 2026 and 2025, expenses related to the distribution of interest earned on collateral reinvestments were $1,249.2 million and $804.8 million, respectively.
Income Tax Provision
The following table summarizes the effective tax rates for the periods presented:
2026 2025
Quarter ended March 31 23.6 % 23.2 %
The overall effective tax rates remained relatively consistent in the first quarter of 2026 when compared with the same period in 2025.
Liquidity and Capital Resources
Sources and Uses of Cash. Net cash provided by operating activities increased in the first quarter of 2026 when compared with the same period in 2025, which was largely due to an increase in trading volume and higher interest earned on reinvestment of collateral, net of distributions. Cash used in investing activities remained relatively consistent in the first quarter of 2026 when compared with the same period in 2025. Cash provided by financing activities was lower during the first quarter of 2026 when compared with the same period in 2025 due to a smaller increase in cash performance bonds and guaranty fund contributions.
Debt Instruments. The following table summarizes our debt outstanding at March 31, 2026:
(in millions) Par Value
Fixed rate notes due June 2028, stated rate of 3.75% $ 500.0
Fixed rate notes due March 2030, stated rate of 4.40% 750.0
Fixed rate notes due March 2032, stated rate of 2.65% 750.0
Fixed rate notes due September 2043, stated rate of 5.30% (1)
750.0
Fixed rate notes due June 2048, stated rate of 4.15% 700.0
_______________
(1)We maintained a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable effectively became fixed at a rate of 4.73%.
We maintain a $2.3 billion multi-currency revolving senior credit facility with various financial institutions, which matures in April 2030. The proceeds from this facility can be used for general corporate purposes, which includes providing liquidity for our clearing house in certain circumstances at CME Group's discretion and, if necessary, for maturities of commercial paper. As long as we are not in default under this facility, we have the option to increase it up to $3.3 billion with the consent of the agent and lenders providing the additional funds. This facility is voluntarily pre-payable from time to time without premium or penalty. Under this facility, we are required to remain in compliance with a consolidated net worth test, which is defined as our consolidated shareholders' equity at December 31, 2024, giving effect to share repurchases made and special dividends paid during the term of the agreement (and in no event greater than $2.0 billion in aggregate), multiplied by 0.65. We currently do not have any borrowings outstanding under this facility, but any commercial paper balance if or when outstanding can be backstopped against this facility.
We maintain a 364-day multi-currency revolving secured credit facility with a consortium of domestic and international banks to be used in certain situations by the clearing house. The facility provides for borrowings of up to $7.0 billion. We may use the proceeds to provide temporary liquidity in the unlikely event a clearing firm fails to promptly discharge an obligation to the clearing house operated by CME, in the event of a liquidity constraint or default by a depositary (custodian for our collateral), in the event of a temporary disruption with the domestic payments system that would delay payment of settlement variation between us and our clearing firms, or in other cases as provided by the CME rulebook. Clearing firm guaranty fund contributions received in the form of cash or U.S. Treasury securities as well as the performance bond assets (pursuant to the CME rulebook) can be used to collateralize the facility. At March 31, 2026, guaranty fund contributions available to collateralize the facility totaled $10.8 billion. We have the option to increase the line from $7.0 billion to $10.0 billion with the consent of the agent and lenders providing the additional funds. Our 364-day facility contains a requirement that CME remain in compliance with a consolidated tangible net worth test, defined as CME's consolidated shareholder's equity less intangible assets (as defined in the agreement), of not less than $800.0 million. We currently do not have any borrowings outstanding under this facility.
The indentures governing our fixed rate notes, our $2.3 billion multi-currency revolving senior credit facility and our 364-day multi-currency revolving secured credit facility for $7.0 billion do not contain specific covenants that restrict the ability to pay dividends. These documents, however, do contain other customary financial and operating covenants that place restrictions on the operations of the company that could indirectly affect the ability to pay dividends.
At March 31, 2026, we have excess borrowing capacity for general corporate purposes of approximately $2.3 billion under our multi-currency revolving senior credit facility.
We maintain committed repurchase facility agreements amounting to a total of $1.0 billion. The committed repurchase facilities provide access to cash, secured by non-cash collateral, in the event that one or more of our clearing firms fails to promptly discharge an obligation to the clearing house. The facilities are subject to annual renewal. We currently do not have any borrowings outstanding under these facilities.
We maintain a committed facility of up to $750.0 million for foreign currency conversions. The committed foreign currency facility allows the clearing house to convert cash to another currency within generally accepted local market timeframes in the event that one or more of our clearing firms fails to promptly discharge an obligation to the clearing house. The facility is subject to annual renewal. We currently do not have any foreign currency trades outstanding under this facility.
At March 31, 2026, we were in compliance with the various covenant requirements of all our debt facilities.
CME Group, as a holding company, has no operations of its own. Instead, it relies on dividends declared and paid to it by its subsidiaries in order to provide the funds which it uses to pay dividends to its shareholders.
To satisfy our performance bond obligation with Singapore Exchange Limited, we may pledge irrevocable standby letters of credit. At March 31, 2026, the letters of credit totaled $400.0 million. We also maintain a $350.0 million line of credit to meet our obligations under this agreement.
The following table summarizes our credit ratings at March 31, 2026:
Short-Term Long-Term
Rating Agency Debt Rating Debt Rating Outlook
Standard & Poor's Global Ratings A1+ AA- Stable
Moody's Investors Service, Inc. P1 Aa3 Stable
Given our cash flow generation, our ability to pay down debt levels and our ability to refinance existing debt facilities if necessary, we expect to maintain an investment grade rating. If our ratings are downgraded below investment grade within certain specified time periods due to a change of control, we are required to make an offer to repurchase our fixed rate notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest. No report of any rating agency is incorporated by reference herein.
Liquidity and Cash Management. Cash and cash equivalents, excluding restricted cash and restricted cash equivalents, totaled $2.4 billion and $4.4 billion at March 31, 2026 and December 31, 2025, respectively. The balance retained in cash and cash equivalents is a function of anticipated or possible short-term cash needs, prevailing interest rates, our corporate investment policy and alternative investment choices. A majority of our cash and cash equivalents balance is invested in money market mutual funds that invest only in U.S. Treasury securities, U.S. government agency securities and U.S. Treasury security reverse repurchase agreements and short-term bank deposits. Our exposure to credit and liquidity risk is minimal given the nature of the investments. Cash that is not available for general corporate purposes because of regulatory requirements or other restrictions is classified as restricted cash and is included in cash performance bonds and guaranty fund contributions, other current assets or other assets in the consolidated balance sheets. Cash performance bonds and guarantee fund contribution assets are deemed to be restricted cash and restricted cash equivalents.
We maintain a share repurchase program under which we are authorized to repurchase up to $3.0 billion of our outstanding Class A common stock, par value $0.01 per share (the common stock), from time to time through open market transactions, block trades, privately negotiated purchase transactions or other purchase techniques and may include purchases effected pursuant to one or more trading plans established pursuant to Rule 10b5-1 under the Exchange Act. The timing of any repurchases and the number of shares repurchased under the share repurchase program are within our discretion and may be affected by various factors, including general market and economic conditions; the market price of the common stock; CME Group's earnings, financial condition, capital requirements and levels of indebtedness; legal requirements; and other considerations. The share repurchase program has no expiration date, does not obligate us to acquire any particular amount of common stock and may be modified, suspended or terminated at any time. As of March 31, 2026, the maximum remaining value of shares to be repurchased was $2.2 billion.
Regulatory Requirements. CME is regulated by the CFTC as a Derivatives Clearing Organization (DCO). DCOs are required to maintain capital, as defined by the CFTC, in an amount at least equal to one year of projected operating expenses as well as cash, liquid securities, or a line of credit at least equal to six months of projected operating expenses. CME was designated by the Financial Stability Oversight Council as a systemically important financial market utility under Title VIII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, CME must comply with CFTC regulations applicable to a systemically important DCO for financial resources and liquidity resources. CME is in compliance with all DCO financial requirements.
CME, CBOT, NYMEX and COMEX are regulated by the CFTC as Designated Contract Markets (DCM). DCMs are required to maintain capital, as defined by the CFTC, in an amount at least equal to one year of projected operating expenses as well as cash, liquid securities or a line of credit at least equal to six months of projected operating expenses. Our DCMs are in compliance with all DCM financial requirements.
BrokerTec Americas LLC is required to maintain sufficient net capital under Securities Exchange Act of 1934, as amended (Exchange Act), Rule 15c3-1 (the Net Capital Rule). The Net Capital Rule focuses on liquidity and is designed to protect securities customers, counterparties, and creditors by requiring that broker-dealers have sufficient liquid resources on hand at all times to satisfy claims promptly. Rule 15c3-3, or the customer protection rule, which complements Rule 15c3-1, is designed to ensure that customer property (securities and funds) in the custody of broker-dealers is adequately safeguarded. By law, both of these rules apply to the activities of registered broker-dealers, but not to unregistered affiliates. The firm began operating as a (k)(2)(i) broker dealer in November 2017 following notification to the Financial Industry Regulatory Authority and the SEC. A company operating under the (k)(2)(i) exemption is not required to lock up customer funds as would otherwise be required under Exchange Act Rule 15c3-3.
CME Group Inc. published this content on April 24, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 24, 2026 at 18:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]