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- Unexceptional revenue figures in Q3
- Interest rate products remain strong
- Free cash flows improved
- Still waiting for a better price entry
- We rate the stock at Hold.
by Yimin Xu
Revenue growth is seasonal
CME's revenue has followed a pattern over the past 3 years. It starts the year strong, but steadily decreases each quarter until the new year begins.
This Q3, revenue was down 2% on the quarter but up 9% year-on-year. CME's clearing and transaction fees grew by 9%. Market data services also increased by 9%.