These terms and conditions govern your use of the website alphaminr.com and its related services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr, (“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms include the provisions in this document as well as those in the Privacy Policy. These terms may be modified at any time.
Your subscription will be on a month to month basis and automatically renew every month. You may terminate your subscription at any time through your account.
We will provide you with advance notice of any change in fees.
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The service is provided “As is”. The materials and information accessible through the Service are solely for informational purposes. While we strive to provide good information and data, we make no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR (2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision shall not affect the validity or enforceability of the remaining provisions herein.
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal information when we provide our service (“Service”). This Privacy Policy explains how information is collected about you either directly or indirectly. By using our service, you acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy Policy, please do not use our Service. You should contact us if you have questions about it. We may modify this Privacy Policy periodically.
When you register for our Service, we collect information from you such as your name, email address and credit card information.
Like many other websites we use “cookies”, which are small text files that are stored on your computer or other device that record your preferences and actions, including how you use the website. You can set your browser or device to refuse all cookies or to alert you when a cookie is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not function properly. We collect information when you use our Service. This includes which pages you visit.
We use Google Analytics and we use Stripe for payment processing. We will not share the information we collect with third parties for promotional purposes. We may share personal information with law enforcement as required or permitted by law.
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
36-4459170
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
20 South Wacker Drive, Chicago, Illinois
|
|
60606
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
x
|
|
|
Accelerated filer
o
|
|
|
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
|
Smaller reporting company
o
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 6.
|
||
|
|
|
•
|
increasing competition by foreign and domestic entities, including increased competition from new entrants into our markets and consolidation of existing entities;
|
•
|
our ability to keep pace with rapid technological developments, including our ability to complete the development, implementation and maintenance of the enhanced functionality required by our customers while maintaining reliability and ensuring that such technology is not vulnerable to security risks;
|
•
|
our ability to continue introducing competitive new products and services on a timely, cost-effective basis, including through our electronic trading capabilities, and our ability to maintain the competitiveness of our existing products and services, including our ability to provide effective services to the swaps market;
|
•
|
our ability to adjust our fixed costs and expenses if our revenues decline;
|
•
|
our ability to maintain existing customers, develop strategic relationships and attract new customers;
|
•
|
our ability to expand and offer our products outside the United States;
|
•
|
changes in domestic and non-U.S. regulations, including the impact of any changes in domestic and foreign laws or government policy with respect to our industry, such as any changes to regulations and policies that require increased financial and operational resources from us or our customers;
|
•
|
the costs associated with protecting our intellectual property rights and our ability to operate our business without violating the intellectual property rights of others;
|
•
|
decreases in revenue from our market data as a result of decreased demand;
|
•
|
changes in our rate per contract due to shifts in the mix of the products traded, the trading venue and the mix of customers (whether the customer receives member or non-member fees or participates in one of our various incentive programs) and the impact of our tiered pricing structure;
|
•
|
the ability of our financial safeguards package to adequately protect us from the credit risks of clearing members;
|
•
|
the ability of our compliance and risk management methods to effectively monitor and manage our risks, including our ability to prevent errors and misconduct and protect our infrastructure against security breaches and misappropriation of our intellectual property assets;
|
•
|
changes in price levels and volatility in the derivatives markets and in underlying equity, foreign exchange, interest rate and commodities markets;
|
•
|
economic, political and market conditions, including the volatility of the capital and credit markets and the impact of economic conditions on the trading activity of our current and potential customers;
|
•
|
our ability to accommodate increases in contract volume and order transaction traffic and to implement enhancements without failure or degradation of the performance of our trading and clearing systems;
|
•
|
our ability to execute our growth strategy and maintain our growth effectively;
|
•
|
our ability to manage the risks and control the costs associated with our strategy for acquisitions, investments and alliances;
|
•
|
our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business;
|
•
|
industry and customer consolidation;
|
•
|
decreases in trading and clearing activity;
|
•
|
the imposition of a transaction tax or user fee on futures and options on futures transactions and/or repeal of the 60/40 tax treatment of such transactions;
|
•
|
the unfavorable resolution of material legal proceedings; and
|
•
|
the seasonality of the futures business.
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
Assets
|
|
|
|
|
||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,037.3
|
|
|
$
|
2,469.7
|
|
Marketable securities
|
|
72.9
|
|
|
68.4
|
|
||
Accounts receivable, net of allowance of $0.9 and $1.2
|
|
334.9
|
|
|
302.7
|
|
||
Other current assets (includes $37.0 and $40.0 in restricted cash)
|
|
196.2
|
|
|
209.7
|
|
||
Performance bonds and guaranty fund contributions
|
|
20,089.9
|
|
|
21,355.1
|
|
||
Total current assets
|
|
21,731.2
|
|
|
24,405.6
|
|
||
Property, net of accumulated depreciation and amortization of $722.6 and $678.4
|
|
503.4
|
|
|
513.4
|
|
||
Intangible assets—trading products
|
|
17,175.3
|
|
|
17,175.3
|
|
||
Intangible assets—other, net
|
|
2,690.9
|
|
|
2,741.2
|
|
||
Goodwill
|
|
7,569.0
|
|
|
7,569.0
|
|
||
Other assets (includes $77.2 and $74.0 in restricted cash)
|
|
1,941.5
|
|
|
1,873.3
|
|
||
Total Assets
|
|
$
|
51,611.3
|
|
|
$
|
54,277.8
|
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
||||
Current Liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
32.1
|
|
|
$
|
36.2
|
|
Short-term debt
|
|
—
|
|
|
749.9
|
|
||
Other current liabilities
|
|
254.7
|
|
|
1,169.8
|
|
||
Performance bonds and guaranty fund contributions
|
|
20,089.9
|
|
|
21,355.1
|
|
||
Total current liabilities
|
|
20,376.7
|
|
|
23,311.0
|
|
||
Long-term debt
|
|
2,107.5
|
|
|
2,107.2
|
|
||
Deferred income tax liabilities, net
|
|
7,271.9
|
|
|
7,249.7
|
|
||
Other liabilities
|
|
389.8
|
|
|
449.4
|
|
||
Total Liabilities
|
|
30,145.9
|
|
|
33,117.3
|
|
||
|
|
|
|
|
||||
CME Group Shareholders’ Equity:
|
|
|
|
|
||||
Preferred stock, $0.01 par value, 10,000 shares authorized as of June 30, 2014 and December 31, 2013; none issued or outstanding
|
|
—
|
|
|
—
|
|
||
Class A common stock, $0.01 par value, 1,000,000 shares authorized; 334,251 and 333,852 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively
|
|
3.3
|
|
|
3.3
|
|
||
Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of June 30, 2014 and December 31, 2013
|
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
|
17,545.6
|
|
|
17,504.9
|
|
||
Retained earnings
|
|
3,709.8
|
|
|
3,494.6
|
|
||
Accumulated other comprehensive income (loss)
|
|
206.7
|
|
|
152.0
|
|
||
Total CME Group shareholders’ equity
|
|
21,465.4
|
|
|
21,154.8
|
|
||
Non-controlling interest
|
|
—
|
|
|
5.7
|
|
||
Total Equity
|
|
21,465.4
|
|
|
21,160.5
|
|
||
Total Liabilities and Equity
|
|
$
|
51,611.3
|
|
|
$
|
54,277.8
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Clearing and transaction fees
|
|
$
|
609.3
|
|
|
$
|
692.5
|
|
|
$
|
1,261.5
|
|
|
$
|
1,285.7
|
|
Market data and information services
|
|
89.6
|
|
|
79.4
|
|
|
179.0
|
|
|
160.3
|
|
||||
Access and communication fees
|
|
20.4
|
|
|
20.6
|
|
|
40.8
|
|
|
42.1
|
|
||||
Other
|
|
12.3
|
|
|
23.6
|
|
|
27.7
|
|
|
46.6
|
|
||||
Total Revenues
|
|
731.6
|
|
|
816.1
|
|
|
1,509.0
|
|
|
1,534.7
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
139.7
|
|
|
128.9
|
|
|
275.2
|
|
|
258.3
|
|
||||
Communications
|
|
8.3
|
|
|
8.6
|
|
|
16.5
|
|
|
17.5
|
|
||||
Technology support services
|
|
14.6
|
|
|
13.8
|
|
|
28.5
|
|
|
26.2
|
|
||||
Professional fees and outside services
|
|
37.5
|
|
|
27.9
|
|
|
67.1
|
|
|
49.8
|
|
||||
Amortization of purchased intangibles
|
|
25.2
|
|
|
25.9
|
|
|
50.4
|
|
|
51.8
|
|
||||
Depreciation and amortization
|
|
34.3
|
|
|
33.2
|
|
|
68.4
|
|
|
65.8
|
|
||||
Occupancy and building operations
|
|
23.2
|
|
|
19.0
|
|
|
46.4
|
|
|
37.5
|
|
||||
Licensing and other fee agreements
|
|
25.7
|
|
|
26.9
|
|
|
54.7
|
|
|
48.1
|
|
||||
Other
|
|
11.1
|
|
|
24.1
|
|
|
35.3
|
|
|
66.4
|
|
||||
Total Expenses
|
|
319.6
|
|
|
308.3
|
|
|
642.5
|
|
|
621.4
|
|
||||
Operating Income
|
|
412.0
|
|
|
507.8
|
|
|
866.5
|
|
|
913.3
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Non-Operating Income (Expense)
|
|
|
|
|
|
|
|
|
||||||||
Investment income
|
|
15.1
|
|
|
18.7
|
|
|
18.3
|
|
|
22.3
|
|
||||
Interest and other borrowing costs
|
|
(28.3
|
)
|
|
(39.2
|
)
|
|
(62.0
|
)
|
|
(78.2
|
)
|
||||
Equity in net gains (losses) of unconsolidated subsidiaries
|
|
21.5
|
|
|
20.2
|
|
|
43.9
|
|
|
37.7
|
|
||||
Other non-operating income (expense)
|
|
1.8
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
||||
Total Non-Operating
|
|
10.1
|
|
|
(0.3
|
)
|
|
2.0
|
|
|
(18.2
|
)
|
||||
Income before Income Taxes
|
|
422.1
|
|
|
507.5
|
|
|
868.5
|
|
|
895.1
|
|
||||
Income tax provision
|
|
158.3
|
|
|
196.2
|
|
|
338.1
|
|
|
346.4
|
|
||||
Net Income
|
|
263.8
|
|
|
311.3
|
|
|
530.4
|
|
|
548.7
|
|
||||
Less: net income (loss) attributable to non-controlling interest
|
|
—
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
1.7
|
|
||||
Net Income Attributable to CME Group
|
|
$
|
263.8
|
|
|
$
|
311.2
|
|
|
$
|
530.6
|
|
|
$
|
547.0
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per Common Share Attributable to CME Group:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.79
|
|
|
$
|
0.94
|
|
|
$
|
1.59
|
|
|
$
|
1.65
|
|
Diluted
|
|
0.79
|
|
|
0.93
|
|
|
1.58
|
|
|
1.64
|
|
||||
Weighted Average Number of Common Shares:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
334,097
|
|
|
332,341
|
|
|
334,002
|
|
|
332,148
|
|
||||
Diluted
|
|
335,800
|
|
|
334,073
|
|
|
335,705
|
|
|
333,739
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
|
$
|
263.8
|
|
|
$
|
311.3
|
|
|
$
|
530.4
|
|
|
$
|
548.7
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Investment securities:
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains (losses) arising during the period
|
|
31.0
|
|
|
(118.0
|
)
|
|
55.9
|
|
|
(120.9
|
)
|
||||
Income tax benefit (expense)
|
|
(1.5
|
)
|
|
4.7
|
|
|
(1.5
|
)
|
|
5.9
|
|
||||
Investment securities, net
|
|
29.5
|
|
|
(113.3
|
)
|
|
54.4
|
|
|
(115.0
|
)
|
||||
Defined benefit plans:
|
|
|
|
|
|
|
|
|
||||||||
Net change in defined benefit plans arising during the period
|
|
—
|
|
|
—
|
|
|
(3.2
|
)
|
|
1.0
|
|
||||
Amortization of net actuarial (gains) losses included in pension expense
|
|
0.1
|
|
|
0.8
|
|
|
0.2
|
|
|
1.6
|
|
||||
Income tax benefit (expense)
|
|
(0.1
|
)
|
|
(0.2
|
)
|
|
1.1
|
|
|
(0.9
|
)
|
||||
Defined benefit plans, net
|
|
—
|
|
|
0.6
|
|
|
(1.9
|
)
|
|
1.7
|
|
||||
Derivative investments:
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized holding gains (losses) arising during the period
|
|
—
|
|
|
60.3
|
|
|
—
|
|
|
85.3
|
|
||||
Amortization of effective portion of net (gain) loss on cash flow hedges included in interest expense
|
|
(0.4
|
)
|
|
0.7
|
|
|
(0.7
|
)
|
|
1.4
|
|
||||
Income tax benefit (expense)
|
|
0.2
|
|
|
(22.2
|
)
|
|
0.3
|
|
|
(31.6
|
)
|
||||
Derivative investments, net
|
|
(0.2
|
)
|
|
38.8
|
|
|
(0.4
|
)
|
|
55.1
|
|
||||
Foreign currency translation:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
|
1.8
|
|
|
(4.6
|
)
|
|
4.2
|
|
|
3.2
|
|
||||
Income tax benefit (expense)
|
|
(0.7
|
)
|
|
1.7
|
|
|
(1.6
|
)
|
|
(1.1
|
)
|
||||
Foreign currency translation, net
|
|
1.1
|
|
|
(2.9
|
)
|
|
2.6
|
|
|
2.1
|
|
||||
Other comprehensive income, net of tax
|
|
30.4
|
|
|
(76.8
|
)
|
|
54.7
|
|
|
(56.1
|
)
|
||||
Comprehensive income
|
|
294.2
|
|
|
234.5
|
|
|
585.1
|
|
|
492.6
|
|
||||
Less: comprehensive income attributable to non-controlling interests
|
|
—
|
|
|
0.1
|
|
|
(0.2
|
)
|
|
1.7
|
|
||||
Comprehensive Income Attributable to CME Group
|
|
$
|
294.2
|
|
|
$
|
234.4
|
|
|
$
|
585.3
|
|
|
$
|
490.9
|
|
|
|
Class A
Common
Stock
(Shares)
|
|
Class B
Common
Stock
(Shares)
|
|
Common
Stock and
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total CME Group
Shareholders’
Equity
|
|
Non-Controlling Interest
|
|
Total Equity
|
||||||||||||||
Balance at December 31, 2013
|
|
333,852
|
|
|
3
|
|
|
$
|
17,508.2
|
|
|
$
|
3,494.6
|
|
|
$
|
152.0
|
|
|
$
|
21,154.8
|
|
|
$
|
5.7
|
|
|
$
|
21,160.5
|
|
Net income attributable to CME Group and non-controlling interest
|
|
|
|
|
|
|
|
530.6
|
|
|
|
|
530.6
|
|
|
(0.2
|
)
|
|
530.4
|
|
||||||||||
Other comprehensive income attributable to CME Group
|
|
|
|
|
|
|
|
|
|
54.7
|
|
|
54.7
|
|
|
|
|
54.7
|
|
|||||||||||
Purchase of non-controlling interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5.5
|
)
|
|
(5.5
|
)
|
||||||||||||
Dividends on common stock of $0.94 per share
|
|
|
|
|
|
|
|
(315.4
|
)
|
|
|
|
(315.4
|
)
|
|
|
|
(315.4
|
)
|
|||||||||||
Exercise of stock options
|
|
298
|
|
|
|
|
11.5
|
|
|
|
|
|
|
11.5
|
|
|
|
|
11.5
|
|
||||||||||
Excess tax benefits from option exercises and restricted stock vesting
|
|
|
|
|
|
2.9
|
|
|
|
|
|
|
2.9
|
|
|
|
|
2.9
|
|
|||||||||||
Vesting of issued restricted Class A common stock
|
|
64
|
|
|
|
|
(2.7
|
)
|
|
|
|
|
|
(2.7
|
)
|
|
|
|
(2.7
|
)
|
||||||||||
Shares issued to Board of Directors
|
|
24
|
|
|
|
|
1.7
|
|
|
|
|
|
|
1.7
|
|
|
|
|
1.7
|
|
||||||||||
Shares issued under Employee Stock Purchase Plan
|
|
13
|
|
|
|
|
0.9
|
|
|
|
|
|
|
0.9
|
|
|
|
|
0.9
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
26.4
|
|
|
|
|
|
|
26.4
|
|
|
|
|
26.4
|
|
|||||||||||
Balance at June 30, 2014
|
|
334,251
|
|
|
3
|
|
|
$
|
17,548.9
|
|
|
$
|
3,709.8
|
|
|
$
|
206.7
|
|
|
$
|
21,465.4
|
|
|
$
|
—
|
|
|
$
|
21,465.4
|
|
|
|
Class A
Common
Stock
(Shares)
|
|
Class B
Common
Stock
(Shares)
|
|
Common
Stock and
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total CME Group
Shareholders’
Equity
|
|
Non-Controlling Interest
|
|
Total Equity
|
||||||||||||||
Balance at December 31, 2012
|
|
331,832
|
|
|
3
|
|
|
$
|
17,216.4
|
|
|
$
|
3,993.4
|
|
|
$
|
209.3
|
|
|
$
|
21,419.1
|
|
|
$
|
5.8
|
|
|
$
|
21,424.9
|
|
Net income attributable to CME Group and non-controlling interest
|
|
|
|
|
|
|
|
547.0
|
|
|
|
|
547.0
|
|
|
0.2
|
|
|
547.2
|
|
||||||||||
Other comprehensive income attributable to CME Group
|
|
|
|
|
|
|
|
|
|
(56.1
|
)
|
|
(56.1
|
)
|
|
|
|
(56.1
|
)
|
|||||||||||
Dividends on common stock of $0.90 per share
|
|
|
|
|
|
|
|
(301.2
|
)
|
|
|
|
(301.2
|
)
|
|
|
|
(301.2
|
)
|
|||||||||||
Tax benefits and gain related to Index Services non-controlling purchase
|
|
|
|
|
|
182.3
|
|
|
|
|
|
|
182.3
|
|
|
|
|
182.3
|
|
|||||||||||
Exercise of stock options
|
|
691
|
|
|
|
|
28.1
|
|
|
|
|
|
|
28.1
|
|
|
|
|
28.1
|
|
||||||||||
Excess tax benefits from option exercises and restricted stock vesting
|
|
|
|
|
|
2.1
|
|
|
|
|
|
|
2.1
|
|
|
|
|
2.1
|
|
|||||||||||
Vesting of issued restricted Class A common stock
|
|
42
|
|
|
|
|
(1.5
|
)
|
|
|
|
|
|
(1.5
|
)
|
|
|
|
(1.5
|
)
|
||||||||||
Shares issued to Board of Directors
|
|
27
|
|
|
|
|
2.1
|
|
|
|
|
|
|
2.1
|
|
|
|
|
2.1
|
|
||||||||||
Shares issued under Employee Stock Purchase Plan
|
|
9
|
|
|
|
|
0.7
|
|
|
|
|
|
|
0.7
|
|
|
|
|
0.7
|
|
||||||||||
Stock-based compensation
|
|
|
|
|
|
26.0
|
|
|
|
|
|
|
26.0
|
|
|
|
|
26.0
|
|
|||||||||||
Balance at June 30, 2013
|
|
332,601
|
|
|
3
|
|
|
$
|
17,456.2
|
|
|
$
|
4,239.2
|
|
|
$
|
153.2
|
|
|
$
|
21,848.6
|
|
|
$
|
6.0
|
|
|
$
|
21,854.6
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2014
|
|
2013
|
||||
Cash Flows from Operating Activities
|
|
|
|
|
||||
Net income
|
|
$
|
530.4
|
|
|
$
|
548.7
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Stock-based compensation
|
|
26.4
|
|
|
26.0
|
|
||
Amortization of purchased intangibles
|
|
50.4
|
|
|
51.8
|
|
||
Depreciation and amortization
|
|
68.4
|
|
|
65.8
|
|
||
Undistributed net (gains) losses of unconsolidated subsidiaries
|
|
(19.2
|
)
|
|
(3.3
|
)
|
||
Deferred income taxes
|
|
17.5
|
|
|
(10.8
|
)
|
||
Change in:
|
|
|
|
|
||||
Accounts receivable
|
|
(31.9
|
)
|
|
(92.1
|
)
|
||
Other current assets
|
|
(4.0
|
)
|
|
28.6
|
|
||
Other assets
|
|
3.8
|
|
|
10.2
|
|
||
Accounts payable
|
|
(4.1
|
)
|
|
(4.7
|
)
|
||
Income taxes payable
|
|
(27.5
|
)
|
|
35.7
|
|
||
Other current liabilities
|
|
(55.2
|
)
|
|
108.2
|
|
||
Other liabilities
|
|
(0.9
|
)
|
|
0.1
|
|
||
Other
|
|
0.6
|
|
|
4.6
|
|
||
Net Cash Provided by Operating Activities
|
|
554.7
|
|
|
768.8
|
|
||
|
|
|
|
|
||||
Cash Flows from Investing Activities
|
|
|
|
|
||||
Proceeds from maturities of available-for-sale marketable securities
|
|
18.3
|
|
|
17.5
|
|
||
Purchases of available-for-sale marketable securities
|
|
(19.1
|
)
|
|
(18.3
|
)
|
||
Purchases of property
|
|
(77.4
|
)
|
|
(55.8
|
)
|
||
Proceeds from sale of building property
|
|
7.9
|
|
|
—
|
|
||
Net Cash Used in Investing Activities
|
|
(70.3
|
)
|
|
(56.6
|
)
|
||
|
|
|
|
|
||||
Cash Flows from Financing Activities
|
|
|
|
|
||||
Repayment of debt
|
|
(750.0
|
)
|
|
—
|
|
||
Cash dividends
|
|
(1,182.1
|
)
|
|
(299.8
|
)
|
||
Purchase of non-controlling interest in CME Group Index Holdings LLC
|
|
—
|
|
|
(80.0
|
)
|
||
Proceeds from exercise of stock options
|
|
11.5
|
|
|
28.1
|
|
||
Excess tax benefits related to employee option exercises and restricted stock vesting
|
|
2.9
|
|
|
2.1
|
|
||
Other
|
|
0.9
|
|
|
0.7
|
|
||
Net Cash Used in Financing Activities
|
|
(1,916.8
|
)
|
|
(348.9
|
)
|
||
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
|
(1,432.4
|
)
|
|
363.3
|
|
||
Cash and cash equivalents, beginning of period
|
|
2,469.7
|
|
|
1,604.7
|
|
||
Cash and Cash Equivalents, End of Period
|
|
$
|
1,037.3
|
|
|
$
|
1,968.0
|
|
|
|
|
|
|
||||
Supplemental Disclosure of Cash Flow Information
|
|
|
|
|
||||
Income taxes paid
|
|
$
|
322.0
|
|
|
$
|
312.1
|
|
Interest paid
|
|
66.8
|
|
|
66.9
|
|
||
Non-cash investing activities:
|
|
|
|
|
||||
Accrued purchase of non-controlling interest
|
|
4.7
|
|
|
—
|
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
(in millions)
|
|
Assigned Value
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
|
Assigned Value
|
|
Accumulated
Amortization
|
|
Net Book
Value
|
||||||||||||
Amortizable Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Clearing firm, market data and other customer relationships
|
|
$
|
2,838.8
|
|
|
$
|
(611.0
|
)
|
|
$
|
2,227.8
|
|
|
$
|
2,838.8
|
|
|
$
|
(563.2
|
)
|
|
$
|
2,275.6
|
|
Lease-related intangibles
|
|
2.2
|
|
|
(0.6
|
)
|
|
1.6
|
|
|
2.2
|
|
|
(0.6
|
)
|
|
1.6
|
|
||||||
Technology-related intellectual property
|
|
33.8
|
|
|
(22.3
|
)
|
|
11.5
|
|
|
33.8
|
|
|
(19.8
|
)
|
|
14.0
|
|
||||||
Trade name
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
—
|
|
||||||
Total amortizable intangible assets
|
|
$
|
2,875.0
|
|
|
$
|
(634.1
|
)
|
|
2,240.9
|
|
|
$
|
2,875.0
|
|
|
$
|
(583.8
|
)
|
|
2,291.2
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Indefinite-Lived Intangible Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade names
|
|
|
|
|
|
450.0
|
|
|
|
|
|
|
450.0
|
|
||||||||||
Total intangible assets – other, net
|
|
|
|
|
|
$
|
2,690.9
|
|
|
|
|
|
|
$
|
2,741.2
|
|
||||||||
Trading products
(1)
|
|
|
|
|
|
$
|
17,175.3
|
|
|
|
|
|
|
$
|
17,175.3
|
|
(1)
|
Trading products represent futures and options products acquired in our business combinations with CBOT Holdings, Inc., NYMEX Holdings, Inc. and The Board of Trade of Kansas City, Missouri, Inc. Clearing and transaction fees revenues are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the CFTC. Product authorizations from the CFTC have no term limits.
|
(in millions)
|
Amortization Expense
|
||
Remainder of 2014
|
$
|
50.4
|
|
2015
|
100.6
|
|
|
2016
|
97.2
|
|
|
2017
|
96.4
|
|
|
2018
|
94.7
|
|
|
2019
|
94.7
|
|
|
Thereafter
|
1,706.9
|
|
(in millions)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
$750.0 million fixed rate notes due February 2014, stated rate of 5.75%
|
|
$
|
—
|
|
|
$
|
749.9
|
|
Total short-term debt
|
|
$
|
—
|
|
|
$
|
749.9
|
|
(in millions)
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
$612.5 million fixed rate notes due March 2018, stated rate of 4.40%
(1)
|
|
$
|
610.7
|
|
|
$
|
610.5
|
|
$750.0 million fixed rate notes due September 2022, stated rate of 3.00%
(2)
|
|
748.1
|
|
|
748.0
|
|
||
$750.0 million fixed rates notes due September 2043, stated rate of 5.30%
(3)
|
|
748.7
|
|
|
748.7
|
|
||
Total long-term debt
|
|
$
|
2,107.5
|
|
|
$
|
2,107.2
|
|
(1)
|
In February 2010, CME Group entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of
4.46%
.
|
(2)
|
In August 2012, CME Group entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of
3.32%
.
|
(3)
|
In August 2012, CME Group entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of
4.73%
.
|
(in millions)
|
Par Value
|
||
2015
|
$
|
—
|
|
2016
|
—
|
|
|
2017
|
—
|
|
|
2018
|
612.5
|
|
|
2019
|
—
|
|
|
Thereafter
|
1,500.0
|
|
(in millions)
|
Fair Value
|
||
$612.5 million fixed rate notes due March 2018, stated rate of 4.40%
|
$
|
660.9
|
|
$750.0 million fixed rate notes due September 2022, stated rate of 3.00%
|
742.6
|
|
|
$750.0 million fixed rates notes due September 2043, stated rate of 5.30%
|
862.9
|
|
(in millions)
|
Investment Securities
|
|
Defined Benefit Plans
|
|
Derivative Investments
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||
Balance at December 31, 2013
|
$
|
98.9
|
|
|
$
|
(12.8
|
)
|
|
$
|
65.0
|
|
|
$
|
0.9
|
|
|
$
|
152.0
|
|
Other comprehensive income before reclassifications and income tax benefit (expense)
|
55.9
|
|
|
(3.2
|
)
|
|
—
|
|
|
4.2
|
|
|
56.9
|
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
0.2
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.5
|
)
|
|||||
Income tax benefit (expense)
|
(1.5
|
)
|
|
1.1
|
|
|
0.3
|
|
|
(1.6
|
)
|
|
(1.7
|
)
|
|||||
Net current period other comprehensive income attributable to CME Group
|
54.4
|
|
|
(1.9
|
)
|
|
(0.4
|
)
|
|
2.6
|
|
|
54.7
|
|
|||||
Balance at June 30, 2014
|
$
|
153.3
|
|
|
$
|
(14.7
|
)
|
|
$
|
64.6
|
|
|
$
|
3.5
|
|
|
$
|
206.7
|
|
(in millions)
|
Investment Securities
|
|
Defined Benefit Plans
|
|
Derivative Investments
|
|
Foreign Currency Translation
|
|
Total
|
||||||||||
Balance at December 31, 2012
|
$
|
256.7
|
|
|
$
|
(32.4
|
)
|
|
$
|
(16.4
|
)
|
|
$
|
1.4
|
|
|
$
|
209.3
|
|
Other comprehensive income before reclassifications and income tax benefit (expense)
|
(120.9
|
)
|
|
1.0
|
|
|
85.3
|
|
|
3.2
|
|
|
(31.4
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
|
|
1.6
|
|
|
1.4
|
|
|
—
|
|
|
3.0
|
|
|||||
Income tax benefit (expense)
|
5.9
|
|
|
(0.9
|
)
|
|
(31.6
|
)
|
|
(1.1
|
)
|
|
(27.7
|
)
|
|||||
Net current period other comprehensive income attributable to CME Group
|
(115.0
|
)
|
|
1.7
|
|
|
55.1
|
|
|
2.1
|
|
|
(56.1
|
)
|
|||||
Balance at June 30, 2013
|
$
|
141.7
|
|
|
$
|
(30.7
|
)
|
|
$
|
38.7
|
|
|
$
|
3.5
|
|
|
$
|
153.2
|
|
•
|
Level 1 inputs, which are considered the most reliable evidence of fair value, consist of quoted prices (unadjusted) for identical assets or liabilities in active markets.
|
•
|
Level 2 inputs consist of observable market data, such as quoted prices for similar assets and liabilities in active markets, or inputs other than quoted prices that are directly observable.
|
•
|
Level 3 inputs consist of unobservable inputs which are derived and cannot be corroborated by market data or other entity-specific inputs.
|
|
|
June 30, 2014
|
||||||||||||||
(in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
|
$
|
19.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19.2
|
|
Mutual funds
|
|
53.3
|
|
|
—
|
|
|
—
|
|
|
53.3
|
|
||||
Asset-backed securities
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||
Total Marketable Securities
|
|
72.5
|
|
|
0.4
|
|
|
—
|
|
|
72.9
|
|
||||
Performance bonds and guaranty fund contributions:
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
(1)
|
|
3,500.0
|
|
|
—
|
|
|
—
|
|
|
3,500.0
|
|
||||
Equity investments
|
|
555.8
|
|
|
—
|
|
|
—
|
|
|
555.8
|
|
||||
Total Assets at Fair Value
|
|
$
|
4,128.3
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
4,128.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities at Fair Value:
|
|
|
|
|
|
|
|
|
||||||||
Contingent consideration
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24.0
|
|
|
$
|
24.0
|
|
Total Liabilities at Fair Value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24.0
|
|
|
$
|
24.0
|
|
(in millions)
|
Contingent Consideration
|
||
Fair value of liability at December 31, 2013
|
$
|
15.7
|
|
Realized and unrealized (gains) losses:
|
|
||
Included in other expenses
|
8.3
|
|
|
Fair value of liability at June 30, 2014
|
$
|
24.0
|
|
|
Quarter Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
(in thousands)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Stock options
|
1,480
|
|
|
1,627
|
|
|
1,480
|
|
|
1,647
|
|
Stock awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
1,480
|
|
|
1,627
|
|
|
1,480
|
|
|
1,647
|
|
|
|
Quarter Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net Income Attributable to CME Group (in millions)
|
|
$
|
263.8
|
|
|
$
|
311.2
|
|
|
$
|
530.6
|
|
|
$
|
547.0
|
|
Weighted Average Number of Common Shares (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
334,097
|
|
|
332,341
|
|
|
334,002
|
|
|
332,148
|
|
||||
Effect of stock options and restricted stock awards
|
|
1,703
|
|
|
1,732
|
|
|
1,703
|
|
|
1,591
|
|
||||
Diluted
|
|
335,800
|
|
|
334,073
|
|
|
335,705
|
|
|
333,739
|
|
||||
Earnings per Common Share Attributable to CME Group:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.79
|
|
|
$
|
0.94
|
|
|
$
|
1.59
|
|
|
$
|
1.65
|
|
Diluted
|
|
0.79
|
|
|
0.93
|
|
|
1.58
|
|
|
1.64
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
(dollars in millions, except per share data)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Total revenues
|
|
$
|
731.6
|
|
|
$
|
816.1
|
|
|
(10
|
)%
|
|
$
|
1,509.0
|
|
|
$
|
1,534.7
|
|
|
(2
|
)%
|
Total expenses
|
|
319.6
|
|
|
308.3
|
|
|
4
|
|
|
642.5
|
|
|
621.4
|
|
|
3
|
|
||||
Operating margin
|
|
56.3
|
%
|
|
62.2
|
%
|
|
|
|
57.4
|
%
|
|
59.5
|
%
|
|
|
||||||
Non-operating income (expense)
|
|
$
|
10.1
|
|
|
$
|
(0.3
|
)
|
|
n.m.
|
|
|
$
|
2.0
|
|
|
$
|
(18.2
|
)
|
|
(111
|
)
|
Effective tax rate
|
|
37.5
|
%
|
|
38.7
|
%
|
|
|
|
38.9
|
%
|
|
38.7
|
%
|
|
|
||||||
Net income attributable to CME Group
|
|
$
|
263.8
|
|
|
$
|
311.2
|
|
|
(15
|
)
|
|
$
|
530.6
|
|
|
$
|
547.0
|
|
|
(3
|
)
|
Diluted earnings per common share attributable to CME Group
|
|
0.79
|
|
|
0.93
|
|
|
(15
|
)
|
|
1.58
|
|
|
1.64
|
|
|
(4
|
)
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
554.7
|
|
|
768.8
|
|
|
(28
|
)
|
•
|
In the second quarter and first six months of 2014 when compared with the same periods in 2013, the decreases in revenues were attributable to lower exchange-traded contract volumes and decreases in other revenues due to proceeds recognized from business interruption insurance in 2013 and declines in rental income. The overall decreases in revenues were partially offset by increases in market data fees related to higher fees for basic real-time market data service and higher over-the-counter contract volumes.
|
•
|
The increases in expenses in the second quarter and first six months of 2014 when compared with the same periods in 2013 were attributable to increases in compensation and benefits expenses relating to higher headcount and expenses associated with the development and continued enhancement of our product offerings and our electronic platforms, partially offset by higher net gains on foreign currency fluctuations and a recovery of expenses recognized in the second quarter of 2014 related to the MF Global bankruptcy in 2011.
|
•
|
The increases in non-operating income (expense) in the second quarter and first six months of 2014 when compared with the same periods in 2013 were due to decreases in interest expense due to the repayment of the 5.75% fixed rate notes due February 2014, the repayment of the 5.4% fixed rate notes due August 2013 and the issuance of the 5.3% fixed rate notes due September 2043 that were effectively fixed at a rate of 4.73% through an interest rate swap agreement.
|
•
|
The overall decrease in effective tax rate for the second quarter of 2014 when compared with the same period in 2013 was largely due to a benefit accrued in the second quarter of 2014 related to the domestic production activities deduction.
|
•
|
Cash flows from operating activities decreased in the first six months of 2014 when compared with the same period in 2013 largely due to cash collateral on hand related to our forward-starting interest rate swap contract in the first six months of 2013.The forward-starting interest rate swap contract was outstanding during the first six months of 2013 in advance of our debt offering in the third quarter of 2013.
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
(dollars in millions)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Clearing and transaction fees
|
|
$
|
609.3
|
|
|
$
|
692.5
|
|
|
(12
|
)%
|
|
$
|
1,261.5
|
|
|
$
|
1,285.7
|
|
|
(2
|
)%
|
Market data and information services
|
|
89.6
|
|
|
79.4
|
|
|
13
|
|
|
179.0
|
|
|
160.3
|
|
|
12
|
|
||||
Access and communication fees
|
|
20.4
|
|
|
20.6
|
|
|
(1
|
)
|
|
40.8
|
|
|
42.1
|
|
|
(3
|
)
|
||||
Other
|
|
12.3
|
|
|
23.6
|
|
|
(48
|
)
|
|
27.7
|
|
|
46.6
|
|
|
(40
|
)
|
||||
Total Revenues
|
|
$
|
731.6
|
|
|
$
|
816.1
|
|
|
(10
|
)
|
|
$
|
1,509.0
|
|
|
$
|
1,534.7
|
|
|
(2
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Total contract volume (in millions)
|
|
796.0
|
|
|
916.7
|
|
|
(13
|
)%
|
|
1,629.2
|
|
|
1,667.2
|
|
|
(2
|
)%
|
||||
Clearing and transaction fees (in millions)
|
|
$
|
596.0
|
|
|
$
|
685.6
|
|
|
(13
|
)
|
|
$
|
1,235.3
|
|
|
$
|
1,275.6
|
|
|
(3
|
)
|
Average rate per contract
|
|
$
|
0.749
|
|
|
$
|
0.748
|
|
|
—
|
|
|
$
|
0.758
|
|
|
$
|
0.765
|
|
|
(1
|
)
|
(in millions)
|
|
Quarter Ended
|
|
Six Months Ended
|
||||
Decreases due to changes in total contract volume
|
|
$
|
(90.4
|
)
|
|
$
|
(28.8
|
)
|
Increase (decrease) due to changes in average rate per contract
|
|
0.8
|
|
|
(11.5
|
)
|
||
Decreases in clearing and transaction fees
|
|
$
|
(89.6
|
)
|
|
$
|
(40.3
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Average Daily Volume by Product Line:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate
|
|
6,668
|
|
|
6,828
|
|
|
(2
|
)%
|
|
6,696
|
|
|
6,261
|
|
|
7
|
%
|
Equity
|
|
2,465
|
|
|
3,079
|
|
|
(20
|
)
|
|
2,674
|
|
|
2,851
|
|
|
(6
|
)
|
Foreign exchange
|
|
638
|
|
|
1,042
|
|
|
(39
|
)
|
|
726
|
|
|
1,027
|
|
|
(29
|
)
|
Agricultural commodity
|
|
1,085
|
|
|
1,107
|
|
|
(2
|
)
|
|
1,125
|
|
|
1,107
|
|
|
2
|
|
Energy
|
|
1,457
|
|
|
1,796
|
|
|
(19
|
)
|
|
1,579
|
|
|
1,764
|
|
|
(11
|
)
|
Metal
|
|
323
|
|
|
471
|
|
|
(31
|
)
|
|
339
|
|
|
435
|
|
|
(22
|
)
|
Aggregate average daily volume
|
|
12,636
|
|
|
14,323
|
|
|
(12
|
)
|
|
13,139
|
|
|
13,445
|
|
|
(2
|
)
|
Average Daily Volume by Venue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Electronic
|
|
10,888
|
|
|
12,459
|
|
|
(13
|
)
|
|
11,289
|
|
|
11,721
|
|
|
(4
|
)
|
Open outcry
|
|
1,101
|
|
|
1,134
|
|
|
(3
|
)
|
|
1,139
|
|
|
1,014
|
|
|
12
|
|
Privately negotiated
(1)
|
|
647
|
|
|
730
|
|
|
(11
|
)
|
|
711
|
|
|
710
|
|
|
—
|
|
Aggregate average daily volume
|
|
12,636
|
|
|
14,323
|
|
|
(12
|
)
|
|
13,139
|
|
|
13,445
|
|
|
(2
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Eurodollar futures and options:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Front 8 futures
|
|
1,451
|
|
|
1,315
|
|
|
10
|
%
|
|
1,441
|
|
|
1,210
|
|
|
19
|
%
|
Back 32 futures
|
|
1,012
|
|
|
1,035
|
|
|
(2
|
)
|
|
1,028
|
|
|
890
|
|
|
16
|
|
Options
|
|
779
|
|
|
608
|
|
|
28
|
|
|
800
|
|
|
507
|
|
|
58
|
|
U.S. Treasury futures and options:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
10-Year
|
|
1,665
|
|
|
1,921
|
|
|
(13
|
)
|
|
1,689
|
|
|
1,811
|
|
|
(7
|
)
|
5-Year
|
|
875
|
|
|
921
|
|
|
(5
|
)
|
|
874
|
|
|
868
|
|
|
1
|
|
Treasury bond
|
|
419
|
|
|
582
|
|
|
(28
|
)
|
|
408
|
|
|
546
|
|
|
(25
|
)
|
2-Year
|
|
280
|
|
|
270
|
|
|
4
|
|
|
268
|
|
|
268
|
|
|
—
|
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
E-mini S&P 500 futures and options
|
|
1,890
|
|
|
2,469
|
|
|
(23
|
)%
|
|
2,068
|
|
|
2,298
|
|
|
(10
|
)%
|
E-mini NASDAQ 100 futures and options
|
|
310
|
|
|
256
|
|
|
21
|
|
|
313
|
|
|
244
|
|
|
28
|
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Euro
|
|
190
|
|
|
296
|
|
|
(36
|
)%
|
|
212
|
|
|
314
|
|
|
(32
|
)%
|
Japanese yen
|
|
124
|
|
|
243
|
|
|
(49
|
)
|
|
145
|
|
|
229
|
|
|
(37
|
)
|
British pound
|
|
97
|
|
|
129
|
|
|
(24
|
)
|
|
109
|
|
|
135
|
|
|
(19
|
)
|
Australian dollar
|
|
71
|
|
|
145
|
|
|
(51
|
)
|
|
84
|
|
|
126
|
|
|
(33
|
)
|
Canadian dollar
|
|
53
|
|
|
85
|
|
|
(37
|
)
|
|
63
|
|
|
84
|
|
|
(25
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Corn
|
|
359
|
|
|
371
|
|
|
(3
|
)%
|
|
374
|
|
|
365
|
|
|
3
|
%
|
Soybean
|
|
228
|
|
|
237
|
|
|
(4
|
)
|
|
241
|
|
|
240
|
|
|
—
|
|
Wheat
|
|
164
|
|
|
157
|
|
|
4
|
|
|
165
|
|
|
158
|
|
|
4
|
|
Soybean oil
|
|
98
|
|
|
108
|
|
|
(9
|
)
|
|
101
|
|
|
106
|
|
|
(5
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Crude oil
|
|
724
|
|
|
847
|
|
|
(15
|
)%
|
|
725
|
|
|
799
|
|
|
(9
|
)%
|
Natural gas
|
|
365
|
|
|
559
|
|
|
(35
|
)
|
|
484
|
|
|
577
|
|
|
(16
|
)
|
Refined products
|
|
278
|
|
|
302
|
|
|
(8
|
)
|
|
286
|
|
|
315
|
|
|
(9
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||
(amounts in thousands)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||
Gold
|
|
175
|
|
|
277
|
|
|
(37
|
)%
|
|
191
|
|
|
262
|
|
|
(27
|
)%
|
Silver
|
|
67
|
|
|
83
|
|
|
(19
|
)
|
|
66
|
|
|
72
|
|
|
(9
|
)
|
Copper
|
|
60
|
|
|
89
|
|
|
(32
|
)
|
|
61
|
|
|
78
|
|
|
(22
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
(dollars in millions)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Compensation and benefits
|
|
$
|
139.7
|
|
|
$
|
128.9
|
|
|
8
|
%
|
|
$
|
275.2
|
|
|
$
|
258.3
|
|
|
7
|
%
|
Communications
|
|
8.3
|
|
|
8.6
|
|
|
(4
|
)
|
|
16.5
|
|
|
17.5
|
|
|
(6
|
)
|
||||
Technology support services
|
|
14.6
|
|
|
13.8
|
|
|
5
|
|
|
28.5
|
|
|
26.2
|
|
|
9
|
|
||||
Professional fees and outside services
|
|
37.5
|
|
|
27.9
|
|
|
35
|
|
|
67.1
|
|
|
49.8
|
|
|
35
|
|
||||
Amortization of purchased intangibles
|
|
25.2
|
|
|
25.9
|
|
|
(2
|
)
|
|
50.4
|
|
|
51.8
|
|
|
(3
|
)
|
||||
Depreciation and amortization
|
|
34.3
|
|
|
33.2
|
|
|
3
|
|
|
68.4
|
|
|
65.8
|
|
|
4
|
|
||||
Occupancy and building operations
|
|
23.2
|
|
|
19.0
|
|
|
22
|
|
|
46.4
|
|
|
37.5
|
|
|
24
|
|
||||
Licensing and other fee agreements
|
|
25.7
|
|
|
26.9
|
|
|
(5
|
)
|
|
54.7
|
|
|
48.1
|
|
|
14
|
|
||||
Other
|
|
11.1
|
|
|
24.1
|
|
|
(54
|
)
|
|
35.3
|
|
|
66.4
|
|
|
(47
|
)
|
||||
Total Expenses
|
|
$
|
319.6
|
|
|
$
|
308.3
|
|
|
4
|
|
|
$
|
642.5
|
|
|
$
|
621.4
|
|
|
3
|
|
|
|
Quarter Ended,
June 30, 2014 |
|
Six Months Ended,
June 30, 2014 |
||||||||||
|
|
Amount of
Change
|
|
Change as a
Percentage of
Total Expenses
|
|
Amount of
Change
|
|
Change as a
Percentage of
Total Expenses
|
||||||
(dollars in millions)
|
|
|||||||||||||
Salaries, benefits and employer taxes
|
|
$
|
8.3
|
|
|
3
|
%
|
|
$
|
14.7
|
|
|
2
|
%
|
Business enhancements and platform development
|
|
4.5
|
|
|
1
|
|
|
10.7
|
|
|
1
|
|
||
Contingent consideration
|
|
4.6
|
|
|
1
|
|
|
7.7
|
|
|
1
|
|
||
Acquisition-related expenses
|
|
4.7
|
|
|
2
|
|
|
7.1
|
|
|
1
|
|
||
License and other fee agreements
|
|
(1.2
|
)
|
|
—
|
|
|
6.6
|
|
|
1
|
|
||
Voluntary exit incentive plan
|
|
5.8
|
|
|
2
|
|
|
5.8
|
|
|
1
|
|
||
Bonus expense
|
|
(4.0
|
)
|
|
(1
|
)
|
|
(1.2
|
)
|
|
—
|
|
||
Litigation accruals
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
(1
|
)
|
||
MF Global bankruptcy claim
|
|
(14.5
|
)
|
|
(5
|
)
|
|
(14.5
|
)
|
|
(2
|
)
|
||
Net losses (gains) on foreign currency fluctuation
|
|
(3.9
|
)
|
|
(1
|
)
|
|
(19.0
|
)
|
|
(3
|
)
|
||
Other expenses, net
|
|
7.0
|
|
|
2
|
|
|
11.2
|
|
|
2
|
|
||
Total increase
|
|
$
|
11.3
|
|
|
4
|
%
|
|
$
|
21.1
|
|
|
3
|
%
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||
(dollars in millions)
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||
Investment income
|
|
$
|
15.1
|
|
|
$
|
18.7
|
|
|
(19
|
)%
|
|
$
|
18.3
|
|
|
$
|
22.3
|
|
|
(18
|
)%
|
Interest and other borrowing costs
|
|
(28.3
|
)
|
|
(39.2
|
)
|
|
(28
|
)
|
|
(62.0
|
)
|
|
(78.2
|
)
|
|
(21
|
)
|
||||
Equity in net gains (losses) of unconsolidated subsidiaries
|
|
21.5
|
|
|
20.2
|
|
|
7
|
|
|
43.9
|
|
|
37.7
|
|
|
17
|
|
||||
Other non-operating income (expense)
|
|
1.8
|
|
|
—
|
|
|
n.m.
|
|
|
1.8
|
|
|
—
|
|
|
n.m.
|
|
||||
Total Non-Operating
|
|
$
|
10.1
|
|
|
$
|
(0.3
|
)
|
|
n.m.
|
|
|
$
|
2.0
|
|
|
$
|
(18.2
|
)
|
|
(111
|
)
|
|
|
Quarter Ended
June 30, |
|
|
|
Six Months Ended
June 30, |
|
|
||||||||||||||||
|
|
2014
|
|
2013
|
|
Change
|
|
2014
|
|
2013
|
|
Change
|
||||||||||||
Weighted average borrowings outstanding (in millions)
|
|
$
|
2,112.5
|
|
|
$
|
2,862.5
|
|
|
$
|
(750.0
|
)
|
|
$
|
2,300.0
|
|
|
$
|
2,862.5
|
|
|
$
|
(562.5
|
)
|
Weighted average effective yield
|
|
4.15
|
%
|
|
4.76
|
%
|
|
(0.61
|
)%
|
|
4.27
|
%
|
|
4.78
|
%
|
|
(0.51
|
)%
|
||||||
Average cost of borrowings
(1)
|
|
4.32
|
|
|
4.95
|
|
|
(0.63
|
)
|
|
4.44
|
|
|
4.96
|
|
|
(0.52
|
)
|
(1)
|
Average cost of borrowings includes interest, the effective portion of interest rate hedges, discount accretion and debt issuance costs. Commitment fees on line of credit agreements are not included in the average cost of borrowing.
|
|
|
2014
|
|
2013
|
|
Change
|
|||
Quarter Ended June 30
|
|
37.5
|
%
|
|
38.7
|
%
|
|
(1.2
|
)%
|
Six Months Ended June 30
|
|
38.9
|
|
|
38.7
|
|
|
0.2
|
|
|
|
||
(in millions)
|
Par Value
|
||
Fixed rate notes due March 2018, stated rate of 4.40%
(1)
|
$
|
612.5
|
|
Fixed rate notes due September 2022, stated rate of 3.00%
(2)
|
750.0
|
|
|
Fixed rate notes due September 2043, stated rate of 5.30%
(3)
|
750.0
|
|
(1)
|
In February 2010, we entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 4.46%.
|
(2)
|
In August 2012, we entered into 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 3.32%.
|
(3)
|
In August 2012, we entered into 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%.
|
|
|
Short-Term
|
|
Long-Term
|
|
|
Rating Agency
|
|
Debt Rating
|
|
Debt Rating
|
|
Outlook
|
Standard & Poor’s
|
|
A1+
|
|
AA-
|
|
Stable
|
Moody’s Investors Service
|
|
P1
|
|
Aa3
|
|
Stable
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
(a) Total Number of
Class A
Shares Purchased (1)
|
|
(b) Average Price
Paid Per Share
|
|
(c) Total Number of Class A Shares Purchased as
Part of Publicly Announced Plans or Programs
|
|
(d) Maximum Number (or Approximate Value) that
May Yet Be Purchased
Under the Plans or Programs
(in millions)
|
||||||
April 1 to April 30
|
|
793
|
|
|
$
|
69.13
|
|
|
—
|
|
|
$
|
—
|
|
May 1 to May 31
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
June 1 to June 30
|
|
3,040
|
|
|
71.41
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
3,833
|
|
|
$
|
70.94
|
|
|
—
|
|
|
|
(1)
|
Shares purchased consist of an aggregate of
3,833
shares of Class A common stock surrendered in the second quarter of
2014
to satisfy employees’ tax obligations upon the vesting of restricted stock.
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 6.
|
EXHIBITS
|
|
|
|
10.1*
|
|
CME Group Inc. Director Stock Plan (Amended and Restated as of May 21, 2014) (incorporated by reference to Exhibit 10.1 to CME Group Inc.’s Form 8-K, filed with the SEC on May 28, 2014, File No. 001-31553).
|
|
|
|
10.2*
|
|
Amended and Restated CME Group Inc. Incentive Plan for Named Executive Officers (Amended and Restated as of May 21, 2014) (incorporated by reference to Exhibit 10.2 to CME Group Inc.’s Form 8-K, filed with the SEC on May 28, 2014, File No. 001-31553).
|
|
|
|
31.1
|
|
Section 302 Certification—Phupinder S. Gill
|
|
|
|
31.2
|
|
Section 302 Certification—James E. Parisi
|
|
|
|
32.1
|
|
Section 906 Certification
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CME Group Inc.
(Registrant)
|
||
|
|
|
|
|||
Dated: August 4, 2014
|
|
|
|
By:
|
|
/s/ James E. Parisi
|
|
|
|
|
|
|
Chief Financial Officer & Senior Managing
Director Finance
and Corporate Development
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|