UPDATE 1-CME Group beats Wall Street view as trading climbs
(Adds analyst expectations, background, details)
Aug 1 (Reuters) - CME Group Inc, the world's biggest futures exchange operator, reported a 27 percent rise in quarterly profit, beating analysts' expectations, as trading surged.
Net income rose to $311.2 million in the second quarter, or 93 cents a share, from a year-earlier $244.9 million, or 74 cents a share, the Chicago-based exchange operator said Thursday. Analysts on average had expected net income of 89 cents a share, according to Thomson Reuters I/B/E/S.
The rise in profits was driven in large part by renewed market speculation over when the U.S. Reserve will tighten monetary policy, which helped buoy trading of CME's flagship interest-rate futures contracts.
The results also suggest that CME Chief Executive Officer Phupinder Gill's focus on international markets is paying off, as trading from Asia and Latin America rose to new records. CME, which operates the Chicago Board of Trade and the New York Mercantile Exchange among other domestic futures markets, plans to open its first exchange abroad, in London, later this year.
CME also benefited from new government mandates for clearing of over-the-counter swaps. CME's cleared swaps business tripled from the prior quarter, Gill said,
Revenue at the company rose to $816.1 million in the quarter, from $795.9 million a year earlier, as trading at CME's exchanges rose 16 percent, to a daily average of 14.3 million contracts.
Expenses fell to $308.3 million, from $326.7 million, the company reported.
CME ended the quarter with cash and marketable securities on hand of $2 billion.
(Reporting by Ann Saphir; Editing by Gerald E. McCormick)