UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2022~~March 31, 2023

- OR -


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-31553

CME GROUP INC.

(Exact name of registrant as specified in its charter)

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)

(312) 930-1000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Class A Common Stock	CME	The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of each of the registrant’s classes of common stock as of ~~October~~April 12, ~~2022~~2023 was as follows: ~~359,724,979~~359,714,515 shares of Class A common stock, $0.01 par value; 625 shares of Class B-1 common stock, $0.01 par value; 813 shares of Class B-2 common stock, $0.01 par value; 1,287 shares of Class B-3 common stock, $0.01 par value; and 413 shares of Class B-4 common stock, $0.01 par value.

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CME GROUP INC.

FORM 10-Q

INDEX



		Page

PART I. FINANCIAL INFORMATION		3

Item 1.	Financial Statements	5

	Consolidated Balance Sheets at ~~September~~March 31 ~~30, 2022~~, 202 3 and December 31, ~~2021~~202 2	5

	Consolidated Statements of Income for the Quarters ~~and~~ ~~Nine~~ ~~Months~~ Ended ~~September~~March 31 , 202 3 ~~30, 2022~~ and ~~2021~~202 2	6

	Consolidated Statements of Comprehensive Income for the Quarters Ended March 31 , 202 3 and 202 ~~Nine~~ ~~Months Ended~~ ~~September~~ ~~30, 2022 and 2021~~2	7

	Consolidated Statements of Equity for the Quarters ~~and~~ ~~Nine~~Ended ~~Months Ended~~ ~~September~~March 31 , 202 3 ~~30, 2022~~ and ~~2021~~202 2	8

	Consolidated Statements of Cash Flows for the ~~Nine~~Quarters ~~Months~~ Ended ~~September~~March 31 , 202 3 ~~30, 2022~~ and ~~2021~~202 2	1210

	Notes to Unaudited Consolidated Financial Statements	1412

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2522

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3430

Item 4.	Controls and Procedures	3430

PART II. OTHER INFORMATION		3430

Item 1.	Legal Proceedings	3430

Item 1A.	Risk Factors	3430

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3430

Item 6.	Exhibits	3531

SIGNATURES		3632

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PART I. FINANCIAL INFORMATION

Certain Terms

All references to “options” or “options contracts” in the text of this document refer to options on futures contracts.

Further information about CME Group and its products can be found at http://www.cmegroup.com. Information made available on our website does not constitute a part of this Quarterly Report on Form 10-Q.

Information about Contract Volume and Average Rate per Contract

All amounts regarding contract volume and average rate per contract are for CME Group's listed futures and options on futures contracts unless otherwise noted.

Trademark Information

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. NEX, BrokerTec and EBS are trademarks of various entities of NEX Group Limited (NEX). Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. ("CME"). All other trademarks are the property of their respective owners.

Forward-Looking Statements

From time to time, in this Quarterly Report on Form 10-Q as well as in other written reports and verbal statements, we discuss our expectations regarding future performance. These forward-looking statements are identified by their use of terms and phrases such as "believe," "anticipate," "could," "estimate," "intend," "may," "plan," "expect" and similar expressions, including references to assumptions. These forward-looking statements are based on currently available competitive, financial and economic data, current expectations, estimates, forecasts and projections about the industries in which we operate and management's beliefs and assumptions. These statements are not guarantees of future performance and 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 forward-looking statements. We want to caution you not to place undue reliance on any forward-looking statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the factors that might affect our performance are:

•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;~~services;

•our ability to adjust our fixed costs and expenses if our revenues decline;

•our ability to maintain existing customers at substantially similar trading levels, develop strategic relationships and attract new customers;

•our ability to expand and globally offer our products and services;

•changes in regulations, including the impact of any changes in laws or government policies with respect to our products or services or 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 or changes to regulations in various jurisdictions;

•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;

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•the ability of our credit and liquidity risk management practices to adequately protect us from the credit risks of clearing members and other counterparties, and to satisfy the margin and liquidity requirements associated with the BrokerTec matched principal business;

•the ability of our compliance and risk management programs 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;

•our dependence on third-party providers and exposure to risk through third parties, including risks related to the performance, reliability and security of technology used by our third-party ~~providers;~~providers and third-party providers that our clients rely on;

•volatility in commodity, equity and fixed income prices, and price volatility of financial benchmarks and instruments such as interest rates, credit spreads, equity indices, fixed income instruments and foreign exchange rates;

•economic, social, 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;

•the impact of the COVID-19 pandemic and response by governments and other third parties;

•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, control the costs and achieve the synergies associated with our strategy for acquisitions, investments and alliances, including those associated with the performance of our ~~investment in~~joint ventures with S~~&P/~~&P Dow Jones (S&P Dow Jones Indices ~~LLC (S&P/DJI)~~LLC) in index services and in trade processing/post trade services OSTTRA), our ~~OSTTRA joint venture with IHS Markit (now part of S&P Global)~~primary data distribution partners’ actions and our partnership with Google Cloud;

•variances in earnings on cash accounts and collateral that our clearing house holds for its clients;

•impact of CME Group pricing and incentive changes;

•impact of aggregation services and internalization on trade flow and volumes;

•any negative financial impacts from changes to the terms of intellectual property and index rights;

•uncertainty related to the ~~transition from LIBOR;~~adoption and growth of SOFR and its impact on our business;

•our ability to continue to generate funds and/or manage our indebtedness to allow us to continue to invest in our business;

•industry, channel partner and customer consolidation;

•decreases in trading and clearing activity;

•the imposition of a transaction tax or user fee on futures and options transactions and/or repeal of the 60/40 tax treatment of such transactions;

•our ability to maintain our brand and reputation; and

•the unfavorable resolution of material legal proceedings.

For a detailed discussion of these and other factors that might affect our performance, see Item 1A. of our Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, filed with the Securities and Exchange Commission on February ~~25, 2022~~27, 2023 and Item 1A. in Part II of this Quarterly Report on Form 10-Q.

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ITEM 1.			FINANCIAL STATEMENTS

CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(dollars in millions, except par value data; shares in thousands)


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
		(unaudited)					(unaudited)
Assets	Assets					Assets
Current Assets:	Current Assets:					Current Assets:
Cash and cash equivalents	Cash and cash equivalents	$	2,130.1	$	2,834.9	Cash and cash equivalents	$	1,565.2	$	2,720.1
Marketable securities	Marketable securities	91.3		115.0		Marketable securities	105.0		96.0
Accounts receivable, net of allowance of $7.3 and $5.6		580.2		434.5
Other current assets (includes $4.6 and $4.8 in restricted cash)		476.4		427.8
Accounts receivable, net of allowance of $8.8 and $8.1						Accounts receivable, net of allowance of $8.8 and $8.1	723.6		483.2
Other current assets (includes $5.1 and $4.9 in restricted cash)						Other current assets (includes $5.1 and $4.9 in restricted cash)	547.2		529.8
Performance bonds and guaranty fund contributions	Performance bonds and guaranty fund contributions	139,974.9		157,949.6		Performance bonds and guaranty fund contributions	128,090.7		135,249.2
Total current assets	Total current assets	143,252.9		161,761.8		Total current assets	131,031.7		139,078.3
Property, net of accumulated depreciation and amortization of $1,111.0 and $1,039.4		465.5		505.3
Property, net of accumulated depreciation and amortization of $1,175.4 and $1,145.2						Property, net of accumulated depreciation and amortization of $1,175.4 and $1,145.2	440.3		455.5
Intangible assets—trading products	Intangible assets—trading products	17,175.3		17,175.3		Intangible assets—trading products	17,175.3		17,175.3
Intangible assets—other, net	Intangible assets—other, net	3,302.2		3,532.0		Intangible assets—other, net	3,217.4		3,269.7
Goodwill	Goodwill	10,447.3		10,528.0		Goodwill	10,490.5		10,482.5
Other assets (includes $0.2 and $0.5 in restricted cash)		3,788.3		3,277.9
Other assets (includes $0.0 and $0.1 in restricted cash)						Other assets (includes $0.0 and $0.1 in restricted cash)	3,684.0		3,714.4
Total Assets	Total Assets	$	178,431.5	$	196,780.3	Total Assets	$	166,039.2	$	174,175.7

Liabilities and Equity	Liabilities and Equity					Liabilities and Equity
Current Liabilities:	Current Liabilities:					Current Liabilities:
Accounts payable	Accounts payable	$	95.0	$	48.8	Accounts payable	$	97.2	$	121.4
Short-term debt	Short-term debt	14.5		749.4		Short-term debt	16.3		16.0
Other current liabilities	Other current liabilities	488.3		1,650.6		Other current liabilities	839.7		2,300.9
Performance bonds and guaranty fund contributions	Performance bonds and guaranty fund contributions	139,974.9		157,949.6		Performance bonds and guaranty fund contributions	128,090.7		135,249.2
Total current liabilities	Total current liabilities	140,572.7		160,398.4		Total current liabilities	129,043.9		137,687.5
Long-term debt	Long-term debt	3,421.8		2,695.7		Long-term debt	3,423.1		3,422.4
Deferred income tax liabilities, net	Deferred income tax liabilities, net	5,351.5		5,390.4		Deferred income tax liabilities, net	5,356.8		5,361.1
Other liabilities	Other liabilities	834.7		896.5		Other liabilities	831.0		826.0
Total Liabilities	Total Liabilities	150,180.7		169,381.0		Total Liabilities	138,654.8		147,297.0

Shareholders’ Equity:	Shareholders’ Equity:					Shareholders’ Equity:
Preferred stock, $0.01 par value, 10,000 shares authorized as of September 30, 2022 and December 31, 2021; 4,584 issued and outstanding as of September 30, 2022 and December 31, 2021		—		—
Class A common stock, $0.01 par value, 1,000,000 shares authorized at September 30, 2022 and December 31, 2021; 358,877 and 358,599 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively		3.6		3.6
Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of September 30, 2022 and December 31, 2021		—		—
Preferred stock, $0.01 par value, 10,000 shares authorized as of March 31, 2023 and December 31, 2022; 4,584 issued and outstanding as of March 31, 2023 and December 31, 2022						Preferred stock, $0.01 par value, 10,000 shares authorized as of March 31, 2023 and December 31, 2022; 4,584 issued and outstanding as of March 31, 2023 and December 31, 2022	—		—
Class A common stock, $0.01 par value, 1,000,000 shares authorized at March 31, 2023 and December 31, 2022; 358,931 and 358,929 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively						Class A common stock, $0.01 par value, 1,000,000 shares authorized at March 31, 2023 and December 31, 2022; 358,931 and 358,929 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	3.6		3.6
Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of March 31, 2023 and December 31, 2022						Class B common stock, $0.01 par value, 3 shares authorized, issued and outstanding as of March 31, 2023 and December 31, 2022	—		—
Additional paid-in capital	Additional paid-in capital	22,235.3		22,190.3		Additional paid-in capital	22,281.5		22,261.6
Retained earnings	Retained earnings	6,111.7		5,151.9		Retained earnings	5,229.9		4,746.8
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)	(99.8)		53.5		Accumulated other comprehensive income (loss)	(130.6)		(133.3)
Total CME Group Shareholders’ Equity	Total CME Group Shareholders’ Equity	28,250.8		27,399.3		Total CME Group Shareholders’ Equity	27,384.4		26,878.7

Total Liabilities and Equity	Total Liabilities and Equity	$	178,431.5	$	196,780.3	Total Liabilities and Equity	$	166,039.2	$	174,175.7

See accompanying notes to unaudited consolidated financial statements.

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CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in millions, except per share data; shares in thousands)

(unaudited)


		Quarter Ended				Nine Months Ended					Quarter Ended
		September 30,				September 30,					March 31,
		2022		2021		2022		2021				2023		2022
Revenues	Revenues									Revenues
Clearing and transaction fees	Clearing and transaction fees	$	998.6	$	878.9	$	3,161.3	$	2,815.8	Clearing and transaction fees		$	1,200.2	$	1,138.1
Market data and information services	Market data and information services	154.3		145.4		457.7		434.8		Market data and information services		165.8		151.7
Other	Other	74.9		85.6		192.6		291.8		Other		75.6		56.8
Total Revenues	Total Revenues	1,227.8		1,109.9		3,811.6		3,542.4		Total Revenues		1,441.6		1,346.6
Expenses	Expenses									Expenses
Compensation and benefits	Compensation and benefits	189.6		198.6		560.1		635.3		Compensation and benefits		204.5		185.2
Technology	Technology	46.8		49.3		138.6		146.8		Technology		51.3		45.9
Professional fees and outside services	Professional fees and outside services	35.1		45.2		98.9		119.4		Professional fees and outside services		38.3		31.8
Amortization of purchased intangibles	Amortization of purchased intangibles	55.5		59.0		171.0		179.0		Amortization of purchased intangibles		56.8		58.4
Depreciation and amortization	Depreciation and amortization	34.5		37.2		101.0		111.9		Depreciation and amortization		31.9		33.5
Licensing and other fee agreements	Licensing and other fee agreements	83.6		57.6		247.6		176.5		Licensing and other fee agreements		84.7		80.9
Other	Other	43.9		49.3		146.8		160.0		Other		60.4		51.8
Total Expenses	Total Expenses	489.0		496.2		1,464.0		1,528.9		Total Expenses		527.9		487.5
Operating Income	Operating Income	738.8		613.7		2,347.6		2,013.5		Operating Income		913.7		859.1

Non-Operating Income (Expense)	Non-Operating Income (Expense)									Non-Operating Income (Expense)
Investment income	Investment income	686.2		145.8		1,046.2		239.1		Investment income		1,357.7		73.1
Interest and other borrowing costs	Interest and other borrowing costs	(40.4)		(41.8)		(122.8)		(125.0)		Interest and other borrowing costs		(39.9)		(42.5)
Equity in net earnings of unconsolidated subsidiaries	Equity in net earnings of unconsolidated subsidiaries	76.5		66.4		237.1		178.3		Equity in net earnings of unconsolidated subsidiaries		78.2		73.3
Other non-operating income (expense)	Other non-operating income (expense)	(581.1)		311.8		(845.1)		268.4		Other non-operating income (expense)		(1,152.8)		(46.7)
Total Non-Operating Income (Expense)	Total Non-Operating Income (Expense)	141.2		482.2		315.4		560.8		Total Non-Operating Income (Expense)		243.2		57.2
Income before Income Taxes	Income before Income Taxes	880.0		1,095.9		2,663.0		2,574.3		Income before Income Taxes		1,156.9		916.3
Income tax provision	Income tax provision	200.4		169.6		609.9		562.6		Income tax provision		273.1		205.3

Net Income	Net Income	679.6		926.3		2,053.1		2,011.7		Net Income		883.8		711.0
Less: net (income) loss attributable to non-controlling interests		—		0.2		—		(0.5)
Net Income Attributable to CME Group		679.6		926.5		2,053.1		2,011.2
Net Income Attributable to Common Shareholders of CME Group	Net Income Attributable to Common Shareholders of CME Group	$	671.1	$	926.5	$	2,027.2	$	2,011.2	Net Income Attributable to Common Shareholders of CME Group		$	872.7	$	702.0

Earnings per Share Attributable to Common Shareholders of CME Group:	Earnings per Share Attributable to Common Shareholders of CME Group:									Earnings per Share Attributable to Common Shareholders of CME Group:
Basic	Basic	$	1.87	$	2.59	$	5.65	$	5.61	Basic		$	2.43	$	1.96
Diluted	Diluted	1.87		2.58		5.64		5.60		Diluted		2.43		1.95
Weighted Average Number of Common Shares:	Weighted Average Number of Common Shares:									Weighted Average Number of Common Shares:
Basic	Basic	358,715		358,363		358,655		358,258		Basic		358,933		358,609
Diluted	Diluted	359,288		358,988		359,206		358,894		Diluted		359,313		359,180

See accompanying notes to unaudited consolidated financial statements.

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CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)


		Quarter Ended				Nine Months Ended					Quarter Ended
		September 30,				September 30,					March 31,
		2022		2021		2022		2021				2023		2022
Net income	Net income	$	679.6	$	926.3	$	2,053.1	$	2,011.7	Net income		$	883.8	$	711.0
Other comprehensive income (loss), net of tax:	Other comprehensive income (loss), net of tax:									Other comprehensive income (loss), net of tax:
Investment securities:	Investment securities:									Investment securities:
Net unrealized holding gains (losses) arising during the period	Net unrealized holding gains (losses) arising during the period	(0.7)		(0.2)		(3.0)		(0.9)		Net unrealized holding gains (losses) arising during the period		0.4		(1.3)
Reclassification of net (gains) losses on sales included in investment income		—		0.2		—		0.2

Income tax benefit (expense)	Income tax benefit (expense)	0.1		—		0.7		0.2		Income tax benefit (expense)		(0.1)		0.3
Investment securities, net	Investment securities, net	(0.6)		—		(2.3)		(0.5)		Investment securities, net		0.3		(1.0)
Defined benefit plans:	Defined benefit plans:									Defined benefit plans:
Net change in defined benefit plans arising during the period	Net change in defined benefit plans arising during the period	—		—		(3.7)		—		Net change in defined benefit plans arising during the period		(3.5)		(3.7)
Amortization of net actuarial (gains) losses included in compensation and benefits expense	Amortization of net actuarial (gains) losses included in compensation and benefits expense	0.3		1.1		0.9		3.3		Amortization of net actuarial (gains) losses included in compensation and benefits expense		—		0.3
Income tax benefit (expense)	Income tax benefit (expense)	(0.1)		(0.2)		0.7		(0.8)		Income tax benefit (expense)		0.9		0.9
Defined benefit plans, net	Defined benefit plans, net	0.2		0.9		(2.1)		2.5		Defined benefit plans, net		(2.6)		(2.5)
Derivative investments:	Derivative investments:									Derivative investments:

Reclassification of net unrealized (gains) losses to interest expense and other non-operating income (expense)	Reclassification of net unrealized (gains) losses to interest expense and other non-operating income (expense)	(0.9)		(0.3)		(1.0)		(0.9)		Reclassification of net unrealized (gains) losses to interest expense and other non-operating income (expense)		(1.2)		0.8
Income tax benefit (expense)	Income tax benefit (expense)	0.2		—		0.2		0.2		Income tax benefit (expense)		0.3		(0.2)
Derivative investments, net	Derivative investments, net	(0.7)		(0.3)		(0.8)		(0.7)		Derivative investments, net		(0.9)		0.6
Foreign currency translation:	Foreign currency translation:									Foreign currency translation:
Foreign currency translation adjustments	Foreign currency translation adjustments	(67.0)		(29.0)		(148.1)		(58.6)		Foreign currency translation adjustments		5.9		(22.6)
Reclassification of net currency (gains) losses from foreign entities to other non-operating (income) and expense		—		(40.3)		—		(40.3)

Foreign currency translation, net	Foreign currency translation, net	(67.0)		(69.3)		(148.1)		(98.9)		Foreign currency translation, net		5.9		(22.6)
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	(68.1)		(68.7)		(153.3)		(97.6)		Other comprehensive income (loss), net of tax		2.7		(25.5)
Comprehensive income	Comprehensive income	611.5		857.6		1,899.8		1,914.1		Comprehensive income		$	886.5	$	685.5
Less: comprehensive (income) loss attributable to non-controlling interests		—		0.2		—		(0.5)
Comprehensive income attributable to CME Group		$	611.5	$	857.8	$	1,899.8	$	1,913.6

See accompanying notes to unaudited consolidated financial statements.

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CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(dollars in millions, except per share data; shares in thousands)

(unaudited)

Nine Months Ended, September 30, 2022
Preferred Stock (Shares) Class A
Common
Stock
(Shares) Class B
Common
Stock
(Shares) Preferred Stock, Common
Stock and
Additional
Paid-in
Capital Retained
Earnings Accumulated
Other
Comprehensive
Income (Loss) Total CME Group Shareholders' Equity
Balance at December 31, 2021 4,584 358,599 3 $ 22,193.9 $ 5,151.9 $ 53.5 $ 27,399.3
Net income 2,053.1 2,053.1
Other comprehensive income (loss) (153.3) (153.3)
Dividends on common and preferred stock of $3.00 per share (1,093.3) (1,093.3)
Exercise of stock options 1 0.1 0.1
Vesting of issued restricted Class A common stock 239 (21.7) (21.7)
Shares issued to Board of Directors 19 4.0 4.0
Shares issued under Employee Stock Purchase Plan 19 3.8 3.8
Stock-based compensation 58.8 58.8
Balance at September 30, 2022 4,584 358,877 3 $ 22,238.9 $ 6,111.7 $ (99.8) $ 28,250.8



	Preferred Stock (Shares)	Class A Common Stock (Shares)	Class B Common Stock (Shares)	Preferred Stock, Common Stock and Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total CME Group Shareholders' Equity
Balance at December 31, 2022	4,584	358,929	3	$	22,265.2	$	4,746.8	$	(133.3)	$	26,878.7
Net income						883.8				883.8
Other comprehensive income (loss)								2.7		2.7
Dividends on common and preferred stock of $1.10 per share						(400.7)				(400.7)




Vesting of issued restricted Class A common stock		2		(0.3)						(0.3)


Stock-based compensation				20.2						20.2
Balance at March 31, 2023	4,584	358,931	3	$	22,285.1	$	5,229.9	$	(130.6)	$	27,384.4

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY (continued)

(dollars in millions, except per share data; shares in thousands)

(unaudited)


		Quarter Ended, September 30, 2022
		Preferred Stock (Shares)	Class A Common Stock (Shares)	Class B Common Stock (Shares)	Preferred Stock, Common Stock and Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total CME Group Shareholders' Equity			Preferred Stock (Shares)	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
Balance at June 30, 2022		4,584	358,677	3	$	22,235.9	$	5,797.5	$	(31.7)	$	28,001.7
Balance at December 31, 2021													Balance at December 31, 2021	4,584	358,599	3	$	22,193.9	$	5,151.9	$	53.5	$	27,399.3
Net income	Net income						679.6				679.6		Net income						711.0				711.0
Other comprehensive income (loss)	Other comprehensive income (loss)								(68.1)		(68.1)		Other comprehensive income (loss)								(25.5)		(25.5)
Dividends on common and preferred stock of $1.00 per share							(365.4)				(365.4)
Dividends on common stock of $1.00 per share													Dividends on common stock of $1.00 per share						(364.0)				(364.0)

Vesting of issued restricted Class A common stock	Vesting of issued restricted Class A common stock		200		(16.4)						(16.4)		Vesting of issued restricted Class A common stock		31		(4.3)						(4.3)

Shares issued to Board of Directors													Shares issued to Board of Directors		1		0.3						0.3

Stock-based compensation	Stock-based compensation				19.4						19.4		Stock-based compensation				20.0						20.0
Balance at September 30, 2022		4,584	358,877	3	$	22,238.9	$	6,111.7	$	(99.8)	$	28,250.8
Balance at March 31, 2022													Balance at March 31, 2022	4,584	358,631	3	$	22,209.9	$	5,498.9	$	28.0	$	27,736.8

See accompanying notes to unaudited consolidated financial statements.

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CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ~~EQUITY~~ ~~(continued)~~CASH FLOWS

(~~dollars~~ in ~~millions, except per share data; shares in thousands)~~millions)

(unaudited)

Nine Months Ended, September 30, 2021
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, 2020 358,110 3 $ 21,189.1 $ 4,995.9 $ 134.9 $ 26,319.9 $ 31.6 $ 26,351.5
Net income 2,011.2 2,011.2 0.5 2,011.7
Other comprehensive income (loss) (97.6) (97.6) (97.6)
Dividends on common stock of $2.70 per share (969.7) (969.7) (969.7)
Purchase of non-controlling interest (19.9) (19.9) (32.1) (52.0)
Exercise of stock options 102 5.5 5.5 5.5
Vesting of issued restricted Class A common stock 329 (31.2) (31.2) (31.2)
Shares issued to Board of Directors 13 2.9 2.9 2.9
Shares issued under Employee Stock Purchase Plan 20 4.4 4.4 4.4
Stock-based compensation 56.6 56.6 56.6
Balance at September 30, 2021 358,574 3 $ 21,207.4 $ 6,037.4 $ 37.3 $ 27,282.1 $ — $ 27,282.1


	Quarter Ended March 31,
	2023		2022
Cash Flows from Operating Activities
Net income	$	883.8	$	711.0
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	20.2		20.0
Amortization of purchased intangibles	56.8		58.4
Depreciation and amortization	31.9		33.5

Net realized and unrealized (gains) losses on investments	(74.8)		(3.5)

Deferred income taxes	(8.7)		(5.1)
Change in:
Accounts receivable	(241.2)		(174.0)
Other current assets	54.7		(69.7)
Other assets	19.4		19.0
Accounts payable	(24.2)		32.0
Income taxes payable	282.5		165.9
Other current liabilities	(106.7)		6.3
Other liabilities	(7.2)		(14.7)
Other	15.9		20.0
Net Cash Provided by Operating Activities	902.4		799.1

Cash Flows from Investing Activities
Proceeds from maturities of available-for-sale marketable securities	0.7		2.7
Purchases of available-for-sale marketable securities	(0.3)		(2.2)
Purchases of property, net	(15.2)		(23.4)


Investments in privately-held equity investments	(2.4)		—


Net Cash Used in Investing Activities	(17.2)		(22.9)

Cash Flows from Financing Activities

Proceeds from debt, net of issuance costs	—		742.7
Repayment of debt, including call premium	—		(756.1)
Cash dividends	(2,035.6)		(1,543.5)


Change in performance bond and guaranty fund contributions	(7,158.5)		9,787.1
Employee taxes paid on restricted stock vesting	(0.3)		(4.3)
Other	(4.1)		(4.3)
Net Cash (Used in) Provided by Financing Activities	(9,198.5)		8,221.6

Table of Contents

CME GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ~~EQUITY~~ ~~(continued)~~

~~(dollars in millions, except per share data; shares in thousands)~~

~~(unaudited)~~

Quarter Ended, September 30, 2021
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 June 30, 2021 358,305 3 $ 21,222.7 $ 5,434.5 $ 106.0 $ 26,763.2 $ 24.2 $ 26,787.4
Net income 926.5 926.5 (0.2) 926.3
Other comprehensive income (loss) (68.7) (68.7) (68.7)
Dividends on common stock of $0.90 per share (323.6) (323.6) (323.6)
Purchase of non-controlling interest (15.5) (15.5) (24.0) (39.5)
Exercise of stock options 43 2.3 2.3 2.3
Vesting of issued restricted Class A common stock 226 (17.7) (17.7) (17.7)
Stock-based compensation 15.6 15.6 15.6
Balance at September 30, 2021 358,574 3 $ 21,207.4 $ 6,037.4 $ 37.3 $ 27,282.1 $ — $ 27,282.1

~~See accompanying notes to unaudited consolidated financial statements.~~

~~Table of Contents~~

~~CME GROUP INC. AND SUBSIDIARIES~~

~~CONSOLIDATED STATEMENTS OF CASH FLOWS~~

~~(in millions)~~

~~(unaudited)~~

Nine Months Ended
September 30,
2022 2021
Cash Flows from Operating Activities
Net income $ 2,053.1 $ 2,011.7
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation 58.8 56.6
Amortization of purchased intangibles 171.0 179.0
Depreciation and amortization 101.0 111.9
Gain on deconsolidation of optimization business — (343.5)
Net realized and unrealized (gains) losses on investments (4.1) (112.0)
Deferred income taxes (22.1) 13.8
Change in:
Accounts receivable (147.4) (81.8)
Other current assets (29.5) (41.0)
Other assets 76.7 41.6
Accounts payable 46.2 3.6
Income taxes payable (167.8) (88.3)
Other current liabilities 0.4 20.0
Other liabilities (60.8) (26.9)
Other (1.0) (10.6)
Net Cash Provided by Operating Activities 2,074.5 1,734.1
Cash Flows from Investing Activities
Proceeds from maturities of available-for-sale marketable securities 5.1 7.4
Purchases of available-for-sale marketable securities (3.7) (6.2)
Purchases of property, net (65.3) (99.9)
Net cash proceeds from OSTTRA joint venture transaction — 43.7
Investment in S&P/Dow Jones Indices LLC (410.0) —
Investments in privately-held equity investments (1.1) (1.5)
Purchase of non-controlling interest — (52.0)
Proceeds from sales of investments 10.9 99.3
Net Cash Used in Investing Activities (464.1) (9.2)
Cash Flows from Financing Activities
Proceeds from debt, net of issuance costs 741.0 —
Repayment of debt, including call premium (756.2) —
Cash dividends (2,270.0) (1,862.5)
Change in performance bond and guaranty fund contributions (17,974.7) 62,409.8
Employee taxes paid on restricted stock vesting (21.7) (31.2)
Other (8.9) (2.7)
Net Cash (Used in) Provided by Financing Activities (20,290.5) 60,513.4

~~Table of Contents~~

~~CME GROUP INC. AND SUBSIDIARIES~~

~~CONSOLIDATED STATEMENTS OF~~ CASH FLOWS (continued)

(in millions)

(unaudited)


		Nine Months Ended September 30,					Quarter Ended March 31,
		2022		2021			2023		2022
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents	Net change in cash, cash equivalents, restricted cash and restricted cash equivalents	$	(18,680.1)	$	62,238.3	Net change in cash, cash equivalents, restricted cash and restricted cash equivalents	$	(8,313.3)	$	8,997.8
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	160,789.9		88,420.3		Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period	137,974.3		160,789.9
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	$	142,109.8	$	150,658.6	Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	$	129,661.0	$	169,787.7

Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents:	Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents:					Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents:
Cash and cash equivalents	Cash and cash equivalents	$	2,130.1	$	1,459.4	Cash and cash equivalents	$	1,565.2	$	2,045.7
Short-term restricted cash	Short-term restricted cash	4.6		4.8		Short-term restricted cash	5.1		4.8
Long-term restricted cash	Long-term restricted cash	0.2		2.8		Long-term restricted cash	—		0.5
Restricted cash and restricted cash equivalents (performance bonds and guaranty fund contributions)	Restricted cash and restricted cash equivalents (performance bonds and guaranty fund contributions)	139,974.9		149,191.6		Restricted cash and restricted cash equivalents (performance bonds and guaranty fund contributions)	128,090.7		167,736.7
Total	Total	$	142,109.8	$	150,658.6	Total	$	129,661.0	$	169,787.7

Supplemental Disclosure of Cash Flow Information	Supplemental Disclosure of Cash Flow Information					Supplemental Disclosure of Cash Flow Information
Income taxes paid	Income taxes paid	$	804.0	$	612.5	Income taxes paid	$	30.9	$	44.6
Interest paid	Interest paid	108.7		109.4		Interest paid	41.1		43.4
Non-cash investing activities:						Non-cash investing activities:
Accrued proceeds from sale of investments						Accrued proceeds from sale of investments	97.9		—

See accompanying notes to unaudited consolidated financial statements.

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Table of Contents

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

The consolidated financial statements consist of CME Group Inc. (CME Group) and its subsidiaries (collectively, the company), including Chicago Mercantile Exchange Inc. (CME), Board of Trade of the City of Chicago, Inc. (CBOT), New York Mercantile Exchange, Inc. (NYMEX), Commodity Exchange, Inc. (COMEX) and NEX Group Limited (NEX). The clearing house is operated by CME.

In January 2021, the company announced that it agreed with IHS Markit (now a part of S&P Global) to combine their post-trade services into a new joint venture, OSTTRA. The joint venture was launched in September 2021. OSTTRA performs trade processing and risk mitigation services.

The accompanying interim consolidated financial statements have been prepared by CME Group without audit. Certain notes and other information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. In the opinion of management, the accompanying consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary to present fairly the financial position of the company at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 and the results of operations and cash flows for the periods indicated. Quarterly results are not necessarily indicative of results for any subsequent period.

During the fourth quarter of 2021, the company revised the presentation of the consolidated statements of cash flows to include cash performance bonds and guaranty fund contributions as restricted cash and restricted cash equivalents within the beginning and ending balances of the reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents. Total cash flows from financing activities were revised to include the changes associated with the cash performance bonds and guaranty fund contribution liability. See Note 4. Performance Bonds and Guaranty Fund Contributions for additional information on cash performance bonds and guaranty fund contributions.

The prior period amounts have been revised to conform to the current period presentation. The revision in presentation is considered immaterial to the company's overall financial statements and has had no impact on the consolidated balance sheets, consolidated statements of income, consolidated statements of comprehensive income or consolidated statements of equity, including all previously filed financial statements. These cash performance bonds and guaranty fund contributions cannot be used for the company's operations or to satisfy any operational liabilities.

~~The following table presents the effects of the changes on the presentation of these cash flows to the previously reported consolidated statements of cash flows of September 30, 2021:~~

2021
(in millions) As Previously Reported Adjustments Revised
Net cash provided by (used in) financing activities $ (1,896.4) 62,409.8 $ 60,513.4
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents (171.5) 62,409.8 62,238.3

The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in CME Group’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, filed with the Securities and Exchange Commission (SEC) on February ~~25, 2022.~~27, 2023.

2. ~~Accounting Policies~~

~~Newly Adopted Accounting Policies.~~ ~~The company adopted the following accounting policies during 2022:~~

In August 2020, FASB issued an accounting update that simplifies the accounting for convertible instruments and amends certain guidance on the computation of EPS for convertible instruments. This guidance reduces the number of accounting models used for the allocation of proceeds attributable to the issuance of a convertible instrument, thereby eliminating the beneficial conversion feature model. It is also noted that this guidance revises and eliminates certain criteria for achieving equity classification on the balance sheet. This accounting update requires entities to provide expanded disclosures about the terms and features of convertible instruments, including information about events, conditions and circumstances that can affect how to assess the amount or timing of an entity’s future cash flows related to those instruments. The company adopted this guidance on January 1, 2022. Adoption of this guidance did not have an impact on the consolidated financial statements.

~~Table of Contents~~

3. Revenue Recognition

The company generates revenue from customers from the following sources:

Clearing and transaction fees. Clearing and transaction fees include electronic trading fees and brokerage commissions, surcharges for privately-negotiated transactions, portfolio reconciliation and compression services, risk mitigation and other volume-related charges for trade contracts. Clearing and transaction fees are assessed upfront at the time of trade execution. As such, the company recognizes the majority of the fee revenue upon successful execution of the trade. The minimal remaining portion of the fee revenue related to settlement activities performed after trade execution is recognized over the short-term period that the contract is outstanding, based on management’s estimates of the average contract lifecycle. These estimates are based on various assumptions to approximate the amount of fee revenue to be attributed to services performed through contract settlement, expiration, or termination. For cleared trades, these assumptions include the average number of days that a contract remains in open interest, contract turnover, average revenue per day, and revenue remaining in open interest at the end of each period.

The nature of contracts gives rise to several types of variable consideration, including volume-based pricing tiers, customer incentives associated with market maker programs and other fee discounts. The company includes fee discounts and incentives in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee reduction. These estimates are based on historical experience, anticipated performance, and best judgment at the time. Because of the company's certainty in estimating these amounts, they are included in the transaction price of contracts.

Market data and information services. Market data and information services represent revenue from the dissemination of market data to subscribers, distributors, and other third-party licensees of market data. Pricing for market data is primarily based on the number of reportable devices used as well as the number of subscribers enrolled under the arrangement. Fees for these services are generally billed monthly. Market data services are satisfied over time and revenue is recognized on a monthly basis as the customers receive and consume the benefit of the market data services. However, the company also maintains certain annual license arrangements with one-time upfront fees. The fees for annual licenses are initially recorded as a contract liability and recognized as revenue monthly over the term of the annual period.

Other. Other revenues include certain access and communication fees, fees for collateral management, equity membership subscription fees, and fees for trade order routing through agreements from various strategic relationships. Access and communication fees are charged to customers that utilize various telecommunications networks and communications services. Fees for these services are generally billed monthly and the associated fee revenue is recognized as billed. Collateral management fees are charged to clearing firms that have collateral on deposit with the clearing house to meet their minimum performance bond and guaranty fund obligations on the exchange. These fees are calculated based on daily collateral balances and are billed monthly. This fee revenue is recognized monthly as billed as the customers receive and consume the benefits of the services. The company also has an equity membership program which provides equity members the option to substitute a monthly subscription fee for their existing requirement to hold CME Group Class A common stock. Choosing to pay this fee in lieu of holding Class A shares is entirely voluntary and the client's choice. Fee revenue under this program is earned monthly as billed over the contractual term. Pricing for strategic relationships may be driven by customer levels and activity. There are fee arrangements which provide for monthly as well as quarterly payments in arrears. Revenue is recognized monthly for strategic relationship arrangements as the customers receive and consume the benefits of the services.

1512

Table of Contents

The following table represents a disaggregation of revenue from contracts with customers by product line for the ~~quarters~~quarter ended March 31, 2023 and ~~nine months ended September 30, 2022 and 2021:~~2022:


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Interest rates	Interest rates	$	317.8	$	251.0	$	1,017.3	$	816.2	Interest rates		$	444.8	$	374.8
Equity indexes	Equity indexes	249.7		181.1		764.7		551.9		Equity indexes		269.2		259.1
Foreign exchange	Foreign exchange	50.8		39.8		140.8		119.3		Foreign exchange		47.5		44.8
Agricultural commodities	Agricultural commodities	104.4		96.3		344.7		354.8		Agricultural commodities		115.3		126.0
Energy	Energy	134.0		157.1		449.4		456.2		Energy		167.9		175.2
Metals	Metals	48.4		45.0		148.0		154.8		Metals		60.9		54.4
BrokerTec fixed income	BrokerTec fixed income	40.7		40.7		127.1		129.0		BrokerTec fixed income		39.2		44.4
EBS foreign exchange	EBS foreign exchange	36.4		38.8		118.6		125.5		EBS foreign exchange		35.8		42.3
Optimization		—		14.0		—		59.9
Interest rate swap	Interest rate swap	16.4		15.1		50.7		48.2		Interest rate swap		19.6		17.1
Total clearing and transaction fees	Total clearing and transaction fees	998.6		878.9		3,161.3		2,815.8		Total clearing and transaction fees		1,200.2		1,138.1
Market data and information services	Market data and information services	154.3		145.4		457.7		434.8		Market data and information services		165.8		151.7
Other	Other	74.9		85.6		192.6		291.8		Other		75.6		56.8
Total revenues	Total revenues	$	1,227.8	$	1,109.9	$	3,811.6	$	3,542.4	Total revenues		$	1,441.6	$	1,346.6

Timing of Revenue Recognition	Timing of Revenue Recognition									Timing of Revenue Recognition
Services transferred at a point in time	Services transferred at a point in time	$	977.1	$	852.4	$	3,084.7	$	2,733.5	Services transferred at a point in time		$	1,177.5	$	1,077.3
Services transferred over time	Services transferred over time	245.1		255.3		711.9		798.2		Services transferred over time		259.5		264.7
One-time charges and miscellaneous revenues	One-time charges and miscellaneous revenues	5.6		2.2		15.0		10.7		One-time charges and miscellaneous revenues		4.6		4.6
Total revenues	Total revenues	$	1,227.8	$	1,109.9	$	3,811.6	$	3,542.4	Total revenues		$	1,441.6	$	1,346.6

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, and customer advances and deposits (contract liabilities) on the consolidated balance sheets. Certain fees for transactions, annual licenses, and other revenue arrangements are billed upfront before revenue is recognized, which results in the recognition of contract liabilities. These liabilities are recognized on the consolidated balance sheets on a contract-by-contract basis upon commencement of services under the customer contract. These upfront customer payments are recognized as revenue over time as the obligations under the contracts are satisfied. Changes in the contract liability balances during the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 were not materially impacted by any other factors. The balance of contract liabilities was $~~24.4~~50.8 million and ~~$15.2~~ $12.7 million as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

4.3. Performance Bonds and Guaranty Fund Contributions

Performance Bonds and Guaranty Fund ~~Contributions.~~Contribution Reinvestment. CME reinvests cash performance bonds and guaranty fund contributions and distributes a portion of the interest earned back to the clearing firms. The reinvestment of cash can include certain commercial and central bank deposits, government securities, reverse repurchase agreements, and money market funds. CME has been designated as a systemically important financial market utility by the Financial Stability Oversight Council and is authorized to maintain cash accounts at the Federal Reserve Bank of Chicago. At ~~September 30, 2022,~~March 31, 2023, CME maintained ~~$128.6~~$117.5 billion within the cash account at the Federal Reserve Bank of Chicago. The cash deposit at the Federal Reserve Bank of Chicago is included within performance bonds and guaranty fund contributions on the consolidated balance sheets.

In the first quarter of 2023 and 2022, earnings from cash performance bond and guaranty fund contributions were $1,256.3 million and $73.6 million, respectively. In the first quarter of 2023 and 2022, expense related to the distribution of interest earned on collateral reinvestments was $1,163.5 million and $48.4 million, respectively. The earnings from cash performance bonds and guaranty fund contributions are included in investment income and the expense related to the distribution of interest earned is included in other non-operating income (expense) on the consolidated statements of income.

Clearing House Contract Settlement. The clearing house marks-to-market open positions at least once a day (twice a day for all futures and options ~~contracts twice a day (once a day for CME's cleared-only interest rate swap~~ contracts). Based on values derived from the mark-to-market process, the clearing house requires payments from clearing firms whose positions have lost value and makes payments to clearing firms whose positions have gained value. Under the extremely unlikely scenario of simultaneous default by every clearing firm who has open positions with unrealized losses, the maximum exposure related to positions other than cleared-only interest rate swap contracts would be one half day of

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changes in fair value of all open positions, before considering the clearing house's ability to access defaulting clearing firms' collateral deposits.

For ~~CME's cleared-only~~cleared interest rate swap contracts, the maximum exposure at the time of default related to ~~CME's~~the clearing house's guarantee would be one full day of changes in fair value of all open positions, before considering ~~CME's~~the clearing house's ability to access defaulting clearing firms' collateral.

During the first ~~nine months~~quarter of ~~2022,~~2023, the clearing house transferred an average of approximately ~~$6.2~~$5.7 billion a day through its clearing systems for settlement from clearing firms whose positions had lost value to clearing firms whose positions had gained

~~Table of Contents~~

value. The clearing house reduces its guarantee exposure through initial and maintenance performance bond requirements and mandatory guaranty fund contributions. Management has assessed the fair value of the company's settlement guarantee liability by taking the following factors into consideration: the design and operations of the clearing risk management process, the financial safeguard packages in place, historical evidence of default by a clearing member and the estimated probability of potential payouts by the clearing house. Based on the assessment performed, management estimates the guarantee liability to be nominal and therefore has not recorded any liability at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. The company does not have a history of significant losses recognized on performance bond collateral as posted by our clearing members, and management currently does not anticipate any future credit losses on its performance bond assets. Accordingly, the company has not provided an allowance for credit losses on these performance bond deposits, nor has it recorded any liabilities to reflect an allowance for credit losses related to our off-balance sheet credit exposures and guarantees.

5.4. Intangible Assets and Goodwill

Intangible assets consisted of the following at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:


		September 30, 2022				December 31, 2021										March 31, 2023						December 31, 2022
(in millions)	(in millions)	Assigned Value		Accumulated Amortization		Net Book Value		Assigned Value		Accumulated Amortization		Deconsolidation(2)		Net Book Value			(in millions)	Assigned Value		Accumulated Amortization			Net Book Value		Assigned Value		Accumulated Amortization		Net Book Value
Amortizable Intangible Assets:	Amortizable Intangible Assets:																Amortizable Intangible Assets:
Clearing firm, market data and other customer relationships	Clearing firm, market data and other customer relationships	$	4,656.0	$	(1,849.1)	$	2,806.9	$	5,818.2	$	(1,847.7)	$	(950.0)	$	3,020.5		Clearing firm, market data and other customer relationships	$	4,691.3	$	(1,964.2)		$	2,727.1	$	4,685.8	$	(1,909.7)	$	2,776.1

Technology-related intellectual property	Technology-related intellectual property	62.5		(53.9)		8.6		175.3		(76.3)		(84.6)		14.4			Technology-related intellectual property	62.5		(57.7)			4.8		62.5		(55.8)		6.7
Other	Other	66.0		(29.3)		36.7		105.7		(35.5)		(23.1)		47.1			Other	70.4		(34.9)			35.5		69.5		(32.6)		36.9
Total amortizable intangible assets	Total amortizable intangible assets	$	4,784.5	$	(1,932.3)	$	2,852.2	$	6,099.2	$	(1,959.5)	$	(1,057.7)	$	3,082.0		Total amortizable intangible assets	$	4,824.2	$	(2,056.8)		$	2,767.4	$	4,817.8	$	(1,998.1)	$	2,819.7

Indefinite-Lived Intangible Assets:	Indefinite-Lived Intangible Assets:																Indefinite-Lived Intangible Assets:
Trade names	Trade names					450.0								450.0			Trade names						450.0						450.0
Total intangible assets – other, net	Total intangible assets – other, net					$	3,302.2							$	3,532.0		Total intangible assets – other, net						$	3,217.4					$	3,269.7
Trading products (1)	Trading products (1)					$	17,175.3							$	17,175.3		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 are generated through the trading of these products. These trading products, most of which have traded for decades, require authorization from the Commodity Futures Trading Commission (CFTC). Product authorizations from the CFTC have no term limits.

~~(2)The activity from deconsolidation includes intangible assets as part of the contribution of the net assets of the optimization business to OSTTRA.~~

Total amortization expense for intangible assets was ~~$55.5~~$56.8 million and ~~$59.0~~$58.4 million for the quarters ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021, respectively. Total amortization expense for intangible assets was $171.0 million and $179.0 million for the nine months ended September 30, 2022 and 2021,~~ respectively.

As of ~~September 30, 2022,~~March 31, 2023, the future estimated amortization expense related to amortizable intangible assets is expected to be as follows:


(in millions)	(in millions)	Amortization Expense		(in millions)	Amortization Expense
Remainder of 2022		$	57.2
2023		225.5
Remainder of 2023				Remainder of 2023	$	171.1
2024	2024	218.9		2024	221.8
2025	2025	218.9		2025	221.8
2026	2026	218.9		2026	221.8
2027	2027	217.7		2027	220.5
2028				2028	214.2
Thereafter	Thereafter	1,695.1		Thereafter	1,496.2

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Goodwill activity consisted of the following for the periods ended ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022:


(in millions)	(in millions)	Balance at December 31, 2021		Deconsolidation (1)		Other Activity (2)		Balance at September 30, 2022		(in millions)	Balance at December 31, 2022		Other Activity (1)		Balance at March 31, 2023
CBOT Holdings	CBOT Holdings	$	5,066.4	$	—	$	—	$	5,066.4	CBOT Holdings	$	5,066.4	$	—	$	5,066.4
NYMEX Holdings	NYMEX Holdings	2,462.2		—		—		2,462.2		NYMEX Holdings	2,462.2		—		2,462.2
NEX	NEX	2,959.0		—		(80.7)		2,878.3		NEX	2,913.5		8.0		2,921.5
Other	Other	40.4		—		—		40.4		Other	40.4		—		40.4
Total Goodwill	Total Goodwill	$	10,528.0	$	—	$	(80.7)	$	10,447.3	Total Goodwill	$	10,482.5	$	8.0	$	10,490.5
(in millions)	(in millions)	Balance at December 31, 2020		Deconsolidation (1)		Other Activity (2)		Balance at December 31, 2021		(in millions)	Balance at December 31, 2021		Other Activity (1)		Balance at December 31, 2022
CBOT Holdings	CBOT Holdings	$	5,066.4	$	—	$	—	$	5,066.4	CBOT Holdings	$	5,066.4	$	—	$	5,066.4
NYMEX Holdings	NYMEX Holdings	2,462.2		—		—		2,462.2		NYMEX Holdings	2,462.2		—		2,462.2
NEX	NEX	3,229.8		(246.2)		(24.6)		2,959.0		NEX	2,959.0		(45.5)		2,913.5
Other	Other	40.4		—		—		40.4		Other	40.4		—		40.4
Total Goodwill	Total Goodwill	$	10,798.8	$	(246.2)	$	(24.6)	$	10,528.0	Total Goodwill	$	10,528.0	$	(45.5)	$	10,482.5

__________

(1) ~~The activity from deconsolidation includes goodwill as part of the contribution of the net assets of the optimization business to OSTTRA.~~

~~(2)~~ Other activity includes currency translation adjustments.

~~6. Long-Term Investments~~

In June 2022, the company invested $410.0 million in S&P/Dow Jones Indices LLC (S&P/DJI), which S&P/DJI used as part of the consideration for its acquisition of the IHS Markit index business. Following the additional contribution, the company's ownership interest remained at 27%. At September 30, 2022, the company's investment in S&P/DJI was $1.4 billion.

7.5. Debt

Short-term debt consisted of the following at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:

(in millions) September 30, 2022 December 31, 2021
$750.0 million fixed rate notes due September 2022, stated rate of 3.00% (1)
$ — $ 749.4
€15.0 million fixed rate notes due May 2023, stated rate of 4.30% 14.5 —
Total short-term debt $ 14.5 $ 749.4

~~(1)~~The company maintained 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%.


(in millions)	March 31, 2023		December 31, 2022
€15.0 million fixed rate notes due May 2023, stated rate of 4.30%	$	16.3	$	16.0
Total short-term debt	$	16.3	$	16.0

Long-term debt consisted of the following at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	March 31, 2023		December 31, 2022
€15.0 million fixed rate notes due May 2023, stated rate of 4.30%		$	—	$	16.8
$750.0 million fixed rate notes due March 2025, stated rate of 3.00% (1)	$750.0 million fixed rate notes due March 2025, stated rate of 3.00% (1)	748.2		747.7		$750.0 million fixed rate notes due March 2025, stated rate of 3.00% (1)	$	748.6	$	748.4
$500.0 million fixed rate notes due June 2028, stated rate of 3.75%	$500.0 million fixed rate notes due June 2028, stated rate of 3.75%	497.6		497.2		$500.0 million fixed rate notes due June 2028, stated rate of 3.75%	497.8		497.7
$750.0 million fixed rate notes due March 2032, stated rate of 2.65%	$750.0 million fixed rate notes due March 2032, stated rate of 2.65%	741.5		—		$750.0 million fixed rate notes due March 2032, stated rate of 2.65%	742.0		741.7
$750.0 million fixed rate notes due September 2043, stated rate of 5.30% (2)	$750.0 million fixed rate notes due September 2043, stated rate of 5.30% (2)	743.6		743.4		$750.0 million fixed rate notes due September 2043, stated rate of 5.30% (2)	743.7		743.7
$700.0 million fixed rate notes due June 2048, stated rate of 4.15%	$700.0 million fixed rate notes due June 2048, stated rate of 4.15%	690.9		690.6		$700.0 million fixed rate notes due June 2048, stated rate of 4.15%	691.0		690.9
Total long-term debt	Total long-term debt	$	3,421.8	$	2,695.7	Total long-term debt	$	3,423.1	$	3,422.4

(1)The company maintained 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 3.11%.

(2)The company maintained 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%.

~~Table of Contents~~

~~Debt~~Long-term debt maturities, at par value (in U.S. dollar equivalent), were as follows at ~~September 30, 2022:~~March 31, 2023:


(in millions)	(in millions)	Par Value		(in millions)	Par Value
2023		$	14.6
2024	2024	—		2024	$	—
2025	2025	750.0		2025	750.0
2026	2026	—		2026	—
2027	2027	—		2027	—
2028				2028	—
Thereafter	Thereafter	2,700.0		Thereafter	2,700.0

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6. Contingencies

Legal and Regulatory Matters. In the normal course of business, the company discusses matters with its regulators raised during regulatory examinations or otherwise subject to their inquiry and oversight. These matters could result in censures, fines, penalties or other sanctions. Management believes the outcome of any resulting actions will not have a material impact on ~~its~~the company's consolidated financial position or results of operations. However, the company is unable to predict the outcome or the timing of the ultimate resolution of these matters, or the potential fines, penalties or injunctive or other equitable relief, if any, that may result from these matters.

A putative class action complaint was filed January 15, 2014 in the Circuit Court of Cook County, Chancery Division, against CME Group Inc. and the Board of Trade of the City of Chicago, Inc. The plaintiffs, certain Class B shareholders of CME Group and Class B members of CBOT, allege breach of contract and breach of the implied covenant of good faith and fair dealing for violations of their core rights granted in the defendants’ respective Certificates of Incorporation. On December 2, 2021, the court granted the plaintiffs’ motion for certification of a damages-only class. No trial date has been set. Given the uncertainty of factors that may potentially affect the resolution of the matter, at this time the company is unable to estimate the reasonably possible loss or range of reasonably possible losses in the unlikely event it were found to be liable at trial. Based on its investigation to date, the company believes that it has strong factual and legal defenses to the claims.

In addition, the company is a defendant in, and ~~has potential for,~~may be subject to, various other legal proceedings arising from its regular business activities. While the ultimate results of such proceedings against the company cannot be predicted with certainty, the company believes that the resolution of any of these matters on an individual or aggregate basis will not have a material impact on its consolidated financial position or results of operations.

No accrual was required for contingent legal and regulatory matters as none were probable and estimable as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.

Intellectual Property Indemnifications. Certain agreements with customers and other third parties related to accessing the CME Group platforms, utilizing market data services and licensing CME SPAN software may contain indemnifications from intellectual property claims that may be made against them as a result of their use of the applicable products and/or services. The potential future claims relating to these indemnifications cannot be estimated and therefore no liability has been recorded.

9.7. Leases

The company has operating leases for corporate offices. The operating leases have remaining lease terms of up to 1615 years, some of which include options to extend or renew the leases for up to an additional five years, and some of which include options to early terminate the leases in less than 12 months. Management evaluates whether these options are exercisable at least quarterly in order to determine whether the contract term must be reassessed. For a small number of the leases, primarily the international locations, management's approach is to enter into short-term leases for a lease term of 12 months or less in order to provide for greater flexibility in the local environment. For certain office spaces, the company has entered into arrangements to sublease excess space to third parties, while the original lease contract remains in effect with the landlord.

The company also has one finance lease, which is related to the sale of our data center in March 2016. In connection with the sale, the company leased back a portion of the property. The sale leaseback transaction was recognized under the financing method and not as a sale leaseback arrangement.

The right-of-use lease asset is recorded within other assets, and the present value of the lease liability is recorded within other liabilities (segregated between short term and long term) on the consolidated balance sheets. The discount rate applied to the lease payments represents the company's incremental borrowing rate.

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The components of lease costs were as follows:


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Operating lease expense:	Operating lease expense:									Operating lease expense:
Operating lease cost	Operating lease cost	$	14.2	$	15.6	$	43.1	$	48.7	Operating lease cost		$	14.0	$	14.7
Short-term lease cost	Short-term lease cost	0.1		0.2		0.3		0.6		Short-term lease cost		0.1		0.1
Total operating lease expense included in other expense	Total operating lease expense included in other expense	$	14.3	$	15.8	$	43.4	$	49.3	Total operating lease expense included in other expense		$	14.1	$	14.8

Finance lease expense:	Finance lease expense:									Finance lease expense:
Interest expense	Interest expense	$	0.7	$	0.7	$	2.1	$	2.3	Interest expense		$	0.7	$	0.7
Depreciation expense	Depreciation expense	2.2		2.2		6.5		6.5		Depreciation expense		2.2		2.2
Total finance lease expense	Total finance lease expense	$	2.9	$	2.9	$	8.6	$	8.8	Total finance lease expense		$	2.9	$	2.9

Sublease revenue included in other revenue	Sublease revenue included in other revenue	$	2.7	$	2.8	$	8.2	$	7.7	Sublease revenue included in other revenue		$	2.4	$	2.7

Supplemental cash flow information related to leases was as follows:


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)		2023		2022
Cash outflows for operating leases	Cash outflows for operating leases	$	15.9	$	17.2	$	49.1	$	47.3	Cash outflows for operating leases		$	17.0	$	16.9
Cash outflows for finance leases	Cash outflows for finance leases	4.3		4.2		12.8		12.7		Cash outflows for finance leases		4.3		4.3

Supplemental balance sheet information related to leases was as follows:

Operating leases


(in millions)	(in millions)	September 30, 2022			December 31, 2021			(in millions)	March 31, 2023			December 31, 2022
Operating lease right-of-use assets	Operating lease right-of-use assets	$	322.0		$	345.3		Operating lease right-of-use assets	$	301.1		$	310.6

Operating lease liabilities:	Operating lease liabilities:							Operating lease liabilities:
Other current liabilities	Other current liabilities	$	49.4		$	47.3		Other current liabilities	$	49.1		$	49.9
Other liabilities	Other liabilities	386.6			449.4			Other liabilities	375.2			383.5
Total operating lease liabilities	Total operating lease liabilities	$	436.0		$	496.7		Total operating lease liabilities	$	424.3		$	433.4

Weighted average remaining lease term (in months)	Weighted average remaining lease term (in months)	123			132			Weighted average remaining lease term (in months)	121			121
Weighted average discount rate	Weighted average discount rate	3.8		%	3.9		%	Weighted average discount rate	3.8		%	3.8		%

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Finance leases


(in millions)	(in millions)	September 30, 2022			December 31, 2021			(in millions)	March 31, 2023			December 31, 2022
Finance lease right-of-use assets	Finance lease right-of-use assets	$	73.7		$	80.2		Finance lease right-of-use assets	$	69.3		$	71.5

Finance lease liabilities:	Finance lease liabilities:							Finance lease liabilities:
Other current liabilities	Other current liabilities	$	8.1		$	7.9		Other current liabilities	$	8.2		$	8.2
Other liabilities	Other liabilities	69.9			75.9			Other liabilities	65.7			67.8
Total finance lease liabilities	Total finance lease liabilities	$	78.0		$	83.8		Total finance lease liabilities	$	73.9		$	76.0

Weighted average remaining lease term (in months)	Weighted average remaining lease term (in months)	102			111			Weighted average remaining lease term (in months)	96			99
Weighted average discount rate	Weighted average discount rate	3.5		%	3.5		%	Weighted average discount rate	3.5		%	3.5		%

Future minimum lease payments were as follows as of ~~September 30, 2022~~March 31, 2023 for operating and finance leases:


(in millions)	(in millions)	Operating Leases		(in millions)	Operating Leases
Remainder of 2022		$	16.4
2023		66.0
Remainder of 2023				Remainder of 2023	$	50.0
2024	2024	60.3		2024	60.9
2025	2025	57.1		2025	57.7
2026	2026	52.5		2026	53.1
2027	2027	50.2		2027	50.8
2028				2028	50.1
Thereafter	Thereafter	240.4		Thereafter	197.0
Total lease payments	Total lease payments	542.9		Total lease payments	519.6
Less: imputed interest	Less: imputed interest	(106.9)		Less: imputed interest	(95.3)
Present value of lease liability	Present value of lease liability	$	436.0	Present value of lease liability	$	424.3


(in millions)	(in millions)	Finance Leases		(in millions)	Finance Leases
Remainder of 2022		$	4.3
2023		17.2
Remainder of 2023				Remainder of 2023	$	12.9
2024	2024	17.4		2024	17.4
2025	2025	17.5		2025	17.5
2026	2026	17.6		2026	17.6
2027	2027	17.8		2027	17.8
2028				2028	17.9
Thereafter	Thereafter	58.9		Thereafter	41.0
Total lease payments	Total lease payments	150.7		Total lease payments	142.1
Less: imputed interest	Less: imputed interest	(72.7)		Less: imputed interest	(68.2)
Present value of lease liability	Present value of lease liability	$	78.0	Present value of lease liability	$	73.9

~~10.~~8. Guarantees

Mutual Offset Agreement. CME and Singapore Exchange Limited (SGX) maintain a mutual offset agreement with a current term through May 2023. This agreement enables market participants to open a futures position on one exchange and liquidate it on the other. The term of the agreement will automatically renew for a one-year period after May 2023 unless either party provides advance notice of their intent to terminate. CME can maintain collateral in the form of irrevocable, standby letters of credit. At ~~September 30, 2022,~~March 31, 2023, CME was contingently liable to SGX on letters of credit totaling $~~330.0~~360.0 million. CME also maintains a $350.0 million line of credit to meet its obligations under this agreement. Regardless of the collateral, CME guarantees all cleared transactions submitted through SGX and would initiate procedures designed to satisfy these financial obligations in the event of a default, such as the use of performance bonds and guaranty fund contributions of the defaulting clearing firm. Management has assessed the fair value of the company's guarantee liability under this mutual offset agreement by taking the following factors into consideration: the design and operations of the clearing risk management process, the financial safeguard packages in place, historical evidence of default by a clearing member and the estimated probability of

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potential payouts by the clearing house. Based on the assessment performed, management estimates the guarantee liability to be nominal and therefore has not recorded any liability at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.

Family Farmer and Rancher Protection Fund. In 2012, the company established the Family Farmer and Rancher Protection Fund (the Fund). The Fund is designed to provide payments, up to certain maximum levels, to family farmers, ranchers and other agricultural industry participants who use the company's agricultural commodity products and who suffer losses to their segregated account balances due to their CME clearing member becoming insolvent. Under the terms of the Fund, farmers and ranchers are eligible for up to $25,000 per participant. Farming and ranching cooperatives are eligible for up to $100,000 per cooperative. The Fund was established with a maximum of $100.0 million available for distribution to participants. Since its establishment, the Fund has made payments of approximately $2.0 million, which leaves $98.0 million available for future claims. If, at any time, payments due to participants were to exceed the amount remaining in the Fund, payments would be pro-rated. Clearing members and customers must register with the company in advance and provide certain documentation in order to substantiate their eligibility. The company believes that its guarantee liability is nominal and therefore has not recorded any liability at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022.

~~11.~~9. Accumulated Other Comprehensive Income (Loss)

The following tables present changes in the accumulated balances for each component of other comprehensive income (loss), including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive income (loss):


(in millions)	(in millions)	Investment Securities		Defined Benefit Plans		Derivative Investments		Foreign Currency Translation		Total		(in millions)	Investment Securities		Defined Benefit Plans		Derivative Investments		Foreign Currency Translation		Total
Balance at December 31, 2021		$	1.1	$	(34.8)	$	66.1	$	21.1	$	53.5
Balance at December 31, 2022												Balance at December 31, 2022	$	(0.9)	$	(22.8)	$	64.7	$	(174.3)	$	(133.3)
Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	(3.0)		(3.7)		—		(148.1)		(154.8)		Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	0.4		(3.5)		—		5.9		2.8
Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	—		0.9		(1.0)		—		(0.1)		Amounts reclassified from accumulated other comprehensive income (loss)	—		—		(1.2)		—		(1.2)
Income tax benefit (expense)	Income tax benefit (expense)	0.7		0.7		0.2		—		1.6		Income tax benefit (expense)	(0.1)		0.9		0.3		—		1.1
Net current period other comprehensive income (loss)	Net current period other comprehensive income (loss)	(2.3)		(2.1)		(0.8)		(148.1)		(153.3)		Net current period other comprehensive income (loss)	0.3		(2.6)		(0.9)		5.9		2.7
Balance at September 30, 2022		$	(1.2)	$	(36.9)	$	65.3	$	(127.0)	$	(99.8)
Balance at March 31, 2023												Balance at March 31, 2023	$	(0.6)	$	(25.4)	$	63.8	$	(168.4)	$	(130.6)


(in millions)	(in millions)	Investment Securities		Defined Benefit Plans		Derivative Investments		Foreign Currency Translation		Total		(in millions)	Investment Securities		Defined Benefit Plans		Derivative Investments		Foreign Currency Translation		Total
Balance at December 31, 2020		$	1.6	$	(57.1)	$	67.0	$	123.4	$	134.9
Balance at December 31, 2021												Balance at December 31, 2021	$	1.1	$	(34.8)	$	66.1	$	21.1	$	53.5
Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	(0.9)		—		—		(58.6)		(59.5)		Other comprehensive income (loss) before reclassifications and income tax benefit (expense)	(1.3)		(3.7)		—		(22.6)		(27.6)
Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	0.2		3.3		(0.9)		(40.3)		(37.7)		Amounts reclassified from accumulated other comprehensive income (loss)	—		0.3		0.8		—		1.1
Income tax benefit (expense)	Income tax benefit (expense)	0.2		(0.8)		0.2		—		(0.4)		Income tax benefit (expense)	0.3		0.9		(0.2)		—		1.0
Net current period other comprehensive income (loss)	Net current period other comprehensive income (loss)	(0.5)		2.5		(0.7)		(98.9)		(97.6)		Net current period other comprehensive income (loss)	(1.0)		(2.5)		0.6		(22.6)		(25.5)

Balance at September 30, 2021		$	1.1	$	(54.6)	$	66.3	$	24.5	$	37.3
Balance at March 31, 2022												Balance at March 31, 2022	$	0.1	$	(37.3)	$	66.7	$	(1.5)	$	28.0

~~12.~~10. Fair Value Measurements

The company uses a three-level classification hierarchy of fair value measurements for disclosure purposes:

•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.

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The company's level 1 assets generally include investments in publicly traded mutual funds, equity securities and corporate debt securities with quoted market prices. In general, the company uses quoted prices in active markets for identical assets to determine the fair value of marketable securities.

The company's level 2 assets and liabilities generally consist of long-term debt notes. The fair values of the long-term debt notes were based on quoted market prices in an inactive market.

The company's level 3 assets and liabilities include certain investments that were adjusted to fair value.

Recurring Fair Value Measurements. Financial assets and liabilities recorded at fair value on the consolidated balance sheet as of ~~September 30, 2022~~March 31, 2023 were classified in their entirety based on the lowest level of input that was significant to each asset and liability's fair value measurement. The following table presents financial instruments measured at fair value on a recurring basis:


		September 30, 2022									March 31, 2023
(in millions)	(in millions)	Level 1		Level 2		Level 3		Total		(in millions)	Level 1		Level 2		Level 3		Total
Assets at Fair Value:	Assets at Fair Value:									Assets at Fair Value:
Marketable securities:	Marketable securities:									Marketable securities:
Corporate debt securities	Corporate debt securities	$	11.6	$	—	$	—	$	11.6	Corporate debt securities	$	11.5	$	—	$	—	$	11.5

Mutual funds	Mutual funds	79.6		—		—		79.6		Mutual funds	93.4		—		—		93.4
Equity securities	Equity securities	0.1		—		—		0.1		Equity securities	0.1		—		—		0.1

Total Marketable Securities	Total Marketable Securities	91.3		—		—		91.3		Total Marketable Securities	105.0		—		—		105.0

Total Assets at Fair Value	Total Assets at Fair Value	$	91.3	$	—	$	—	$	91.3	Total Assets at Fair Value	$	105.0	$	—	$	—	$	105.0

Non-Recurring Fair Value Measurements. The company ~~also~~ recognized a net unrealized ~~losses~~gain on investments of ~~$8.9~~$1.3 million on equity investments without readily determinable fair value. The fair value of these investments was estimated to be ~~$36.1~~$8.6 million at ~~September 30, 2022. The~~March 31, 2023. This fair value assessment was based on quantitative ~~and qualitative indicators of fair value.~~factors, including observable price changes. The fair value ~~measurement~~measurements of ~~the investment is~~these investments are considered level 3 and non-recurring.

Fair Values of Long-Term Debt Notes. The following presents the estimated fair values of long-term debt notes, which are carried at amortized cost on the consolidated balance sheets. The fair values below are classified as level 2 under the fair value hierarchy and were estimated using quoted market prices in inactive markets.

At ~~September 30, 2022,~~March 31, 2023, the fair values (in U.S. dollar equivalent) were as follows:


(in millions)	Fair Value	Level

€15.0 million fixed rate notes due May 2023	~~14.7~~16.3	Level 2
$750.0 million fixed rate notes due March 2025	~~718.9~~726.3	Level 2
$500.0 million fixed rate notes due June 2028	~~471.5~~488.1	Level 2
$750.0 million fixed rate notes due March 2032	~~617.7~~650.8	Level 2
$750.0 million fixed rate notes due September 2043	~~747.5~~792.5	Level 2
$700.0 million fixed rate notes due June 2048	~~618.5~~657.9	Level 2

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~~13.~~11. Earnings Per Share

The company uses the two-class method to calculate basic and diluted earnings per common share because its Series G preferred stock are participating securities. Under the two-class method, undistributed earnings are allocated to common stock and participating securities according to their respective rights in undistributed earnings, as if all of the earnings for the period had been distributed. Basic earnings per common share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Net income attributable to common shareholders is reduced for preferred stock dividends earned during the period. Preferred stock also receives a proportionate allocation of undistributed or overdistributed earnings for the period because Series G preferred stock has a contractual obligation to share in profits and losses of the company. Diluted earnings per share is computed by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding plus potentially dilutive common shares. Anti-dilutive stock awards were as follows for the periods presented:


		Quarter Ended September 30,		Nine Months Ended September 30,			Quarter Ended March 31,
(in thousands)	(in thousands)	2022	2021	2022	2021	(in thousands)		2023	2022

Stock awards	Stock awards	102	—	107	72	Stock awards		160	78
Total	Total	102	—	107	72	Total		160	78

The following table presents the earnings per share calculation for the periods presented:


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
		2022		2021		2022		2021				2023		2022
Net Income Attributable to CME Group (in millions)		$	679.6	$	926.5	$	2,053.1	$	2,011.2
Net Income (in millions)										Net Income (in millions)		$	883.8	$	711.0
Less: preferred stock dividends	Less: preferred stock dividends	(4.6)		—		(13.8)		—		Less: preferred stock dividends		(5.0)		(4.6)
Less: undistributed earnings allocated to preferred stock	Less: undistributed earnings allocated to preferred stock	(3.9)		—		(12.1)		—		Less: undistributed earnings allocated to preferred stock		(6.1)		(4.4)
Net Income Attributable to Common Shareholders of CME Group	Net Income Attributable to Common Shareholders of CME Group	$	671.1	$	926.5	$	2,027.2	$	2,011.2	Net Income Attributable to Common Shareholders of CME Group		$	872.7	$	702.0

Weighted Average Number of Common Shares (in thousands):	Weighted Average Number of Common Shares (in thousands):									Weighted Average Number of Common Shares (in thousands):
Basic	Basic	358,715		358,363		358,655		358,258		Basic		358,933		358,609
Effect of stock options, restricted stock and performance shares	Effect of stock options, restricted stock and performance shares	573		625		551		636		Effect of stock options, restricted stock and performance shares		380		571
Diluted	Diluted	359,288		358,988		359,206		358,894		Diluted		359,313		359,180
Earnings per Common Share Attributable to Common Shareholders of CME Group:	Earnings per Common Share Attributable to Common Shareholders of CME Group:									Earnings per Common Share Attributable to Common Shareholders of CME Group:
Basic	Basic	$	1.87	$	2.59	$	5.65	$	5.61	Basic		$	2.43	$	1.96
Diluted	Diluted	1.87		2.58		5.64		5.60		Diluted		2.43		1.95

~~14.~~12. Subsequent Events

The company has evaluated subsequent events through the date the financial statements were issued. The company has determined that there were no subsequent events that met the requirement for recognition or disclosure in the consolidated financial statements.

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ITEM 2.			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, ~~2021,~~2022, filed with the SEC on February ~~25, 2022.~~27, 2023.

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 September 30,								Nine Months Ended September 30,									Quarter Ended March 31,
(dollars in millions, except per share data)	(dollars in millions, except per share data)	2022			2021			Change		2022			2021			Change		(dollars in millions, except per share data)		2023			2022			Change
Total revenues	Total revenues	$	1,227.8		$	1,109.9		11	%	$	3,811.6		$	3,542.4		8	%	Total revenues		$	1,441.6		$	1,346.6		7	%
Total expenses	Total expenses	489.0			496.2			(1)		1,464.0			1,528.9			(4)		Total expenses		527.9			487.5			8
Operating margin	Operating margin	60.2		%	55.3		%			61.6		%	56.8		%			Operating margin		63.4		%	63.8		%
Non-operating income (expense)	Non-operating income (expense)	$	141.2		$	482.2		(71)		$	315.4		$	560.8		(44)		Non-operating income (expense)		$	243.2		$	57.2		n.m.
Effective tax rate	Effective tax rate	22.8		%	15.5		%			22.9		%	21.9		%			Effective tax rate		23.6		%	22.4		%
Net income attributable to CME Group		$	679.6		$	926.5		(27)		$	2,053.1		$	2,011.2		2
Diluted earnings per common share attributable to CME Group		1.87			2.58			(28)		5.64			5.60			1
Net income																		Net income		$	883.8		$	711.0		24
Diluted earnings per common share																		Diluted earnings per common share		2.43			1.95			25
Cash flows from operating activities	Cash flows from operating activities									2,074.5			1,734.1			20		Cash flows from operating activities		902.4			799.1			13

n.m. not meaningful

Revenues


		Quarter Ended September 30,						Nine Months Ended September 30,							Quarter Ended March 31,
(dollars in millions)	(dollars in millions)	2022		2021		Change		2022		2021		Change		(dollars in millions)		2023		2022		Change
Clearing and transaction fees	Clearing and transaction fees	$	998.6	$	878.9	14	%	$	3,161.3	$	2,815.8	12	%	Clearing and transaction fees		$	1,200.2	$	1,138.1	5	%
Market data and information services	Market data and information services	154.3		145.4		6		457.7		434.8		5		Market data and information services		165.8		151.7		9
Other	Other	74.9		85.6		(13)		192.6		291.8		(34)		Other		75.6		56.8		33
Total Revenues	Total Revenues	$	1,227.8	$	1,109.9	11		$	3,811.6	$	3,542.4	8		Total Revenues		$	1,441.6	$	1,346.6	7

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 exclude trading volume for the cash markets business and interest rate swaps volume.


		Quarter Ended September 30,						Nine Months Ended September 30,							Quarter Ended March 31,
		2022		2021		Change		2022		2021		Change				2023		2022		Change
Total contract volume (in millions)	Total contract volume (in millions)	1,435.9		1,138.3		26	%	4,472.4		3,631.4		23	%	Total contract volume (in millions)		1,666.1		1,607.1		4	%
Clearing and transaction fees (in millions)	Clearing and transaction fees (in millions)	$	905.1	$	770.3	17		$	2,864.9	$	2,453.2	17		Clearing and transaction fees (in millions)		$	1,105.6	$	1,034.3	7
Average rate per contract	Average rate per contract	$	0.631	$	0.677	(7)		$	0.641	$	0.676	(5)		Average rate per contract		$	0.664	$	0.644	3

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We estimate the following net ~~changes~~change in clearing and transaction fees based on ~~changes~~the change in total contract volume and ~~changes~~the change in average rate per contract for futures and options during the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021.~~2022.

(in millions) Quarter Ended Nine Months Ended
Increases due to changes in total contract volumes $ 187.6 $ 538.7
Decreases due to changes in average rate per contract (52.8) (127.0)
Net increases in clearing and transaction fees $ 134.8 $ 411.7


(in millions)	Quarter Ended
Increase due to a change in total contract volume	$	39.2
Increase due to a change in average rate per contract	32.1
Net increase in clearing and transaction fees	$	71.3

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 September 30,					Nine Months Ended September 30,						Quarter Ended March 31,
(amounts in thousands)	(amounts in thousands)	2022	2021		Change		2022	2021		Change		(amounts in thousands)		2023		2022		Change
Average Daily Volume by Product Line:	Average Daily Volume by Product Line:											Average Daily Volume by Product Line:
Interest rates	Interest rates	10,357	8,111		28	%	11,149	8,995		24	%	Interest rates		14,490		12,484		16	%
Equity indexes	Equity indexes	7,445	5,100		46		7,712	5,372		44		Equity indexes		7,303		7,950		(8)
Foreign exchange	Foreign exchange	1,091	776		41		983	798		23		Foreign exchange		969		904		7
Agricultural commodities	Agricultural commodities	1,208	1,141		6		1,328	1,412		(6)		Agricultural commodities		1,379		1,474		(6)
Energy	Energy	1,837	2,178		(16)		2,092	2,166		(3)		Energy		2,083		2,515		(17)
Metals	Metals	499	480		4		525	573		(8)		Metals		649		593		9
Aggregate average daily volume	Aggregate average daily volume	22,437	17,786		26		23,789	19,316		23		Aggregate average daily volume		26,873		25,920		4
Average Daily Volume by Venue:	Average Daily Volume by Venue:											Average Daily Volume by Venue:
CME Globex	CME Globex	21,021	16,652		26		22,192	18,071		23		CME Globex		24,170		24,060		—
Open outcry	Open outcry	704	598		18		818	640		28		Open outcry		1,623		1,030		58
Privately negotiated	Privately negotiated	712	536		33		779	605		29		Privately negotiated		1,080		830		30
Aggregate average daily volume	Aggregate average daily volume	22,437	17,786		26		23,789	19,316		23		Aggregate average daily volume		26,873		25,920		4
Electronic Volume as a Percentage of Total Volume	Electronic Volume as a Percentage of Total Volume	94%	94	%			93%	94	%			Electronic Volume as a Percentage of Total Volume		90	%	93	%

~~Overall market~~Market volatility increased within certain financial markets throughout the first ~~nine months~~quarter of ~~2022~~2023, following lower overall volatility in ~~much~~the first quarter of ~~2021.~~2022. Interest rate and ~~equity~~foreign exchange volatility ~~was~~were higher as result of ~~a change~~higher inflation levels and market uncertainty following the collapse of two U.S. regional banks. However, volatility was lower within our equities, agricultural commodity and energy markets. These markets experienced higher volatility in market expectations and uncertainty regarding the Federal Reserve's interest rate policy amid higher than expected inflation levels. The Federal Open Market Committee raised the Federal Funds rate by a total of 300 percentage points in the first nine months ofearly 2022 ~~and has indicated that it intends~~due to ~~further raise interest rates in the near future. In addition,~~ geopolitical uncertainty ~~due to~~as a result of the conflict between Russia and Ukraine also continues to result in additional market volatility within the equity and foreign exchange markets. However, the geopolitical uncertainty between Russia and Ukraine also led to risk aversion and reduced trading by market participants within the agricultural commodity and energy markets due to global commodity trade uncertainty and low global supplies of energy products.Ukraine. We believe these factors led to the changes in contract volume during the ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, when compared with the same ~~periods~~period in ~~2021.~~2022.

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Interest Rate Products

The following table summarizes average daily contract volume for our key interest rate products.

Quarter Ended
September 30, Nine Months Ended
September 30,
(amounts in thousands) 2022 2021 Change 2022 2021 Change
Eurodollar futures and options:
Futures expiring within two years 891 1,072 (17) % 1,296 1,165 11 %
Options 512 890 (42) 946 986 (4)
Futures expiring beyond two years 339 967 (65) 537 1,126 (52)
SOFR futures and options:
Futures expiring within two years 1,780 114 n.m. 1,408 109 n.m.
Futures expiring beyond two years 333 9 n.m. 244 9 n.m.
Options 585 — n.m. 286 — n.m.
U.S. Treasury futures and options:
10-Year (1)
2,354 2,291 3 2,556 2,549 —
5-Year (1)
1,481 1,136 30 1,602 1,263 27
2-Year (1)
663 390 70 707 439 61
Treasury Bond (1)
470 531 (11) 520 586 (11)
Federal Funds futures and options 335 71 n.m. 350 87 n.m.

~~_______________~~

(1) U.S. Treasury futures and options now include respective weekly treasury options that were previously separated under a unique product category. Prior period amounts have been revised to conform to the current period presentation.


	Quarter Ended March 31,
(amounts in thousands)		2023	2022	Change
Eurodollar futures and options:
Futures expiring within two years		325	1,869	(83)	%
Options		137	1,489	(91)
Futures expiring beyond two years		82	811	(90)
SOFR futures and options:
Futures expiring within two years		3,001	1,043	n.m.
Options		2,429	39	n.m.
Futures expiring beyond two years		907	156	n.m.
U.S. Treasury futures and options:
10-Year		2,921	2,855	2
5-Year		1,896	1,742	9
2-Year		828	711	16
Treasury Bond		560	557	1
Federal Funds futures and options		601	414	45

n.m. not meaningful

In the ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, overall interest rate contract ~~volumes~~volume increased when compared with the same ~~periods~~period in ~~2021.~~2022. We believe ~~these increases were~~this increase was due to higher interest rate volatility as a result of higher ~~than expected~~ inflation levels and market uncertainty following the collapse of two U.S. regional banks. The Federal Open Market Committee's decision to increase the Federal Funds rate ~~multiple times~~ in ~~2022. The increases~~the first quarter of 2023 also contributed to additional interest rate volatility. In addition, the increase in Secured Overnight Financing Rate contract (SOFR) ~~volumes were~~volume was also due to more market participants transitioning to the new reference rate ~~as well as incentive programs designed to encourage market participation~~away from Eurdollar contracts, which are based on LIBOR. The LIBOR rate will conclude in ~~SOFR options trading.~~the second quarter of 2023.

Equity Index Products

The following table summarizes average daily contract volume for our key equity index products.

Quarter Ended
September 30, Nine Months Ended
September 30,
(amounts in thousands) 2022 2021 Change 2022 2021 Change
E-mini S&P 500 futures and options (1)
4,538 2,947 54 % 4,503 3,087 46 %
E-mini Nasdaq 100 futures and options (1)
2,120 1,392 52 2,273 1,500 52
E-mini Russell 2000 futures and options (1)
328 348 (6) 391 358 9
~~_______________~~


	Quarter Ended March 31,
(amounts in thousands)		2023	2022	Change
E-mini S&P 500 futures and options		4,601	4,477	3	%
E-mini Nasdaq 100 futures and options		1,896	2,381	(20)
E-mini Russell 2000 futures and options		332	452	(26)

(1) Futures and options now include respective weekly Micro E-mini options that were previously separated under a unique product category. Prior period amounts have been revised to conform to the current period presentation.

Equity index contract ~~volumes increased i~~nvolume decreased in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021~~2022, which we believe was due to ~~increases in volatility. Volatility~~lower overall volatility within the equity indexes ~~increased as a result~~in the first quarter of 2023 when compared with the ~~Federal Reserve's actions to increase~~same period in 2022. Significant market uncertainty in the ~~Federal Funds rate~~first quarter of 2022 was due to higher than expected inflation, ~~levels in 2022~~ as well as rising tensions and geopolitical uncertainty with Russia and Ukraine. We believe these factors led to ~~the~~lower overall ~~increases in~~ equity contract ~~volumes.~~

~~Table~~volume in the first quarter of ~~Contents~~

2023 when compared with the same period in 2022.

Foreign Exchange Products

The following table summarizes average daily contract volume for our key foreign exchange products.


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(amounts in thousands)	(amounts in thousands)	2022	2021	Change		2022	2021	Change		(amounts in thousands)		2023	2022	Change
Euro	Euro	299	195	54	%	263	210	25	%	Euro		268	249	8	%
Japanese Yen	Japanese Yen	193	113	70		166	112	48		Japanese Yen		173	134	29
British Pound	British Pound	149	100	49		129	100	30		British Pound		112	118	(5)
Australian dollar	Australian dollar	109	96	14		106	105	2		Australian dollar		104	102	2

Table of Contents

Overall foreign exchange contract ~~volumes~~volume increased in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021.~~2022. Market volatility ~~increased~~was higher in ~~2022 following low foreign exchange volatility in 2021~~the first quarter of 2023 due to market uncertainty surrounding the financial health of regional and global ~~central banks' interest rate policy decisions as~~banks in the U.S. and Europe. As a result, ~~of higher than expected inflation~~Japanese Yen contract volume increased as ~~well as~~ ~~rising tension and geopolitical uncertainty with Russia and Ukraine.~~investor demand for safe haven currencies increased amid market uncertainty. We believe these factors led to ~~the~~an overall ~~increases~~increase in foreign exchange contract ~~volumes.~~volume.

Agricultural Commodity Products

The following table summarizes average daily contract volume for our key agricultural commodity products.


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(amounts in thousands)	(amounts in thousands)	2022	2021	Change		2022	2021	Change		(amounts in thousands)		2023	2022	Change
Corn	Corn	387	369	5	%	446	494	(10)	%	Corn		409	487	(16)	%
Soybean	Soybean	229	205	12		272	284	(4)		Soybean		296	323	(8)
Wheat	Wheat	162	182	(11)		184	203	(9)		Wheat		185	224	(17)

In the ~~third~~first quarter of ~~2022~~2023 when compared with the same period in ~~2021,~~2022, overall commodity contract volume ~~increased~~decreased due to ~~a slight increase in~~lower overall market volatility. Volatility in the ~~third~~first quarter of ~~2021~~2022 was ~~low~~higher as a result of ~~stable prices and demand following the 2021 growing season.~~

~~We believe the overall decline in commodity contract volume in the first nine months of 2022 when compared with the same period in 2021 was largely due to risk aversion by market participants following price increases and~~ global trade uncertainty due to the conflict between Russia and Ukraine. We believe these factors contributed to lower overall commodity volume.

Energy Products

The following table summarizes average daily contract volume for our key energy products.


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(amounts in thousands)	(amounts in thousands)	2022	2021	Change		2022	2021	Change		(amounts in thousands)		2023	2022	Change
WTI crude oil	WTI crude oil	1,049	1,119	(6)	%	1,153	1,150	—	%	WTI crude oil		1,067	1,438	(26)	%
Natural gas	Natural gas	404	583	(31)		499	540	(8)		Natural gas		599	542	10
Refined products	Refined products	298	355	(16)		341	351	(3)		Refined products		328	408	(20)

Overall energy contract ~~volumes~~volume decreased in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021. Participant trading activity slowed down largely due to concerns regarding low global crude oil supplies, high inflation and~~2022. Market volatility was higher in the first quarter of 2022 as a ~~possible economic downturn. In addition,~~result of the ~~sustained conflict between~~ Russia and Ukraine ~~continued to cause disruptions to the global energy markets.~~ Weconflict, which we believe ~~these factors~~ led to the overall decrease in energy contract ~~volumes.~~

volume.

Metal Products

The following table summarizes average daily volume for our key metal products.


		Quarter Ended September 30,				Nine Months Ended September 30,					Quarter Ended March 31,
(amounts in thousands)	(amounts in thousands)	2022	2021	Change		2022	2021	Change		(amounts in thousands)		2023	2022	Change
Gold	Gold	300	294	2	%	326	341	(4)	%	Gold		398	390	2	%
Copper	Copper	94	87	9		91	108	(16)		Copper		123	89	38
Silver	Silver	78	78	—		82	102	(19)		Silver		94	86	9

~~Table~~In the first quarter of ~~Contents~~

~~Overall~~2023, overall metal contract volume increased ~~slightly in the third quarter of 2022~~ when compared with the same period in ~~2021. Uncertainty surrounding~~2022. Market uncertainty following the ~~global economy and threats~~collapse of two U.S. regional banks led to an ~~economic slowdown have caused market users to manage their risk expectations through the use of our copper and gold contracts, which may be viewed as a safe haven~~overall increase in ~~uncertain times.~~

~~In the first nine months of 2022, metal contract volume decreased when compared with the same period in 2021 due to~~ ~~lower overall market volatility within the gold and silver markets in early 2022. Volatility was higher in early 2021, as investors were using~~demand for gold and other precious metals as safe-haven ~~investments~~investments. In addition, copper contract volume increased largely due to an increase in demand for copper in China following the ~~COVID-19~~lifting of restrictions from the COVID pandemic. We believe these factors led to the overall increase in metal contract volume.

Average Rate per Contract

The average rate per contract ~~decreased~~increased in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023, when compared with the same ~~periods~~period in ~~2021.~~2022. The ~~decreases~~increase in the average rate per contract ~~were~~was primarily due to changes in product mix. In the third quarter of 2022, equity index, interest rate and foreign exchange contract volumes increased by 6 percentage points as a percent of total volume, while all other products collectively decreased by 6 percentage points. In the first nine months of 2022, equity index, interest rate and foreign exchange contract volumes increased by 5 percentage points as a percent of total volume, while all other products collectively decreased by 5 percentage points. In general, equity index, interest rate and foreign exchange products have a lower rate per contract compared with the remaining contracts.an increase to our fee structure that went into effect on February 1, 2023.

Cash Markets Business

Total clearing and transaction fees revenues in the ~~third~~first quarter ~~and the first nine months~~ of ~~2022~~2023 include ~~$77.1~~$75.0 million ~~and $245.7 million~~ ooff transaction fees attributable to the cash markets business, compared with ~~$93.5 million and $314.4~~$86.7 million in the ~~third~~first quarter ~~and first nine months of 2021, respectively.~~2022. This revenue primarily includes BrokerTec Americas LLC's fixed income volume and EBS's foreign exchange volume. ~~In September 2021, we contributed the net assets~~

Table of ~~our optimization business to OSTTRA, our new joint venture with IHS Markit (now a part of S&P Global).~~Contents


		Quarter Ended September 30,						Nine Months Ended September 30,							Quarter Ended March 31,
(amounts in millions)	(amounts in millions)	2022		2021		Change		2022		2021		Change		(amounts in millions)		2023		2022		Change
BrokerTec fixed income transaction fees	BrokerTec fixed income transaction fees	$	40.7	$	40.7	—	%	$	127.1	$	129.0	(1)	%	BrokerTec fixed income transaction fees		$	39.2	$	44.4	(12)	%
EBS foreign exchange transaction fees	EBS foreign exchange transaction fees	36.4		38.8		(6)	%	118.6		125.5		(5)	%	EBS foreign exchange transaction fees		35.8		42.3		(15)	%
Optimization transaction fees		—		14.0		n.m.		—		59.9		n.m.

The related average daily notional value for the ~~third~~first quarter of 2023 and ~~first nine months of~~ 2022 were as follows:


		Quarter Ended September 30,						Nine Months Ended September 30,							Quarter Ended March 31,
(amounts in billions)	(amounts in billions)	2022		2021		Change		2022		2021		Change		(amounts in billions)		2023		2022		Change
European Repo (in euros)	European Repo (in euros)	$	359.2	$	293.4	22	%	$	342.1	$	293.8	16	%	European Repo (in euros)		$	354.7	$	320.8	11	%
U.S. Treasury	U.S. Treasury	119.9		98.0		22		133.6		113.0		18		U.S. Treasury		123.7		147.4		(16)
Spot FX	Spot FX	66.4		54.4		22		66.6		62.8		6		Spot FX		64.4		68.1		(5)

Overall average daily notional values for the cash markets business ~~increased~~remained relatively flat in the ~~third~~first quarter ~~and the first nine months~~ of ~~2022~~2023 compared with the same ~~periods~~period in ~~2021.~~2022. We believe the decrease in U.S. Treasury and Spot FX average daily notional value was due to overall lower volatility in the first quarter of 2023 when compared with the same period in 2022. Volatility within the U.S. Treasury and spot FX markets was higher in the first quarter of 2022 as a result of the conflict between Russia and Ukraine and uncertainty around the Federal Reserve's interest rate policy in early 2022. The ~~increases~~slight increase in European Repo ~~and U.S. Treasury transactions were~~average daily notional value was largely due to increased volatility as a result of a change in market expectations regarding the ~~Federal Reserve's~~European Central Bank's interest rate ~~policy, following higher than expected inflation levels in 2022.~~policy. Despite the ~~increase in~~overall average daily notional value remaining flat, transaction revenue for BrokerTec and EBS decreased slightly in the first quarter of 2023 when compared with the same period in 2022, due to the tiered pricing structure and incentive rate programs.

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~~No one individual firm ~~represented approximately~~represented 10% of o~~our~~ur clearing and transaction fees in the first ~~nine months~~quarter of ~~2022.~~2023. 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 ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, overall market data and information services revenues increased when compared with the same ~~periods~~period in ~~2021,~~2022, largely due to price increases for certain products.

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The two largest resellers of our market data represented approximately ~~33%~~31% of our market data and information services revenue in the first ~~nine months~~quarter of ~~2022.~~2023. 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.

Other revenues. In the ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, the ~~decreases~~increase in other ~~revenue~~revenues when compared with the same ~~periods~~period in ~~2021 were~~2022 was largely attributable to ~~the deconsolidation of the optimization business~~higher custody fees as well as an increase in ~~September 2021 as part of the contribution of the business's net assets to OSTTRA, our joint venture with IHS Markit. In the third quarter~~co-location and ~~first nine months of 2021, the optimization business generated $29.2 million and $116.1 million in~~ other ~~revenue.~~connectivity fees.

Expenses


		Quarter Ended September 30,						Nine Months Ended September 30,							Quarter Ended March 31,
(dollars in millions)	(dollars in millions)	2022		2021		Change		2022		2021		Change		(dollars in millions)		2023		2022		Change
Compensation and benefits	Compensation and benefits	$	189.6	$	198.6	(5)	%	$	560.1	$	635.3	(12)	%	Compensation and benefits		$	204.5	$	185.2	10	%
Technology	Technology	46.8		49.3		(5)		138.6		146.8		(6)		Technology		51.3		45.9		12
Professional fees and outside services	Professional fees and outside services	35.1		45.2		(22)		98.9		119.4		(17)		Professional fees and outside services		38.3		31.8		21
Amortization of purchased intangibles	Amortization of purchased intangibles	55.5		59.0		(6)		171.0		179.0		(4)		Amortization of purchased intangibles		56.8		58.4		(3)
Depreciation and amortization	Depreciation and amortization	34.5		37.2		(7)		101.0		111.9		(10)		Depreciation and amortization		31.9		33.5		(5)
Licensing and other fee agreements	Licensing and other fee agreements	83.6		57.6		45		247.6		176.5		40		Licensing and other fee agreements		84.7		80.9		5
Other	Other	43.9		49.3		(11)		146.8		160.0		(8)		Other		60.4		51.8		17
Total Expenses	Total Expenses	$	489.0	$	496.2	(1)		$	1,464.0	$	1,528.9	(4)		Total Expenses		$	527.9	$	487.5	8	%

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Operating expenses ~~decreased~~increased by ~~$7.2 million and $64.9~~$40.4 million in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021.~~2022. The following table shows the estimated impacts of key factors resulting in the change in operating expenses:


		Quarter Ended September 30, 2022				Nine Months Ended September 30, 2022						Quarter Ended March 31, 2023
		Amount of Change		Change as a Percentage of Total Expenses		Amount of Change		Change as a Percentage of Total Expenses					Amount of Change		Change as a Percentage of Total Expenses
(dollars in millions)	(dollars in millions)									(dollars in millions)	Amount of Change	Change as a Percentage of Total Expenses
Non-qualified deferred compensation										Non-qualified deferred compensation			$	11.0	2	%
Salaries, benefits and employer taxes	Salaries, benefits and employer taxes	$	(13.8)	(3)	%	$	(57.8)	(4)	%	Salaries, benefits and employer taxes			8.0		2
Non-qualified deferred compensation		(3.1)		(1)		(28.9)		(2)
Professional fees and outside services										Professional fees and outside services			6.6		1
Technology support services										Technology support services			5.8		1
Currency fluctuation	Currency fluctuation	(7.3)		(1)		(23.8)		(2)		Currency fluctuation			5.0		1
Professional fees and outside services		(10.1)		(2)		(20.5)		(1)
Employee severance and restructuring		(5.1)		(1)		(16.3)		(1)
Bonus		9.2		2		24.4		2
Licensing and other fee agreements		26.0		5		71.1		5
Building maintenance										Building maintenance			(4.5)		(1)
Other expenses, net	Other expenses, net	(3.0)		—		(13.1)		(1)		Other expenses, net			8.5		2
Total decrease		$	(7.2)	(1)	%	$	(64.9)	(4)	%
Total increase										Total increase			$	40.4	8	%

~~Decreases~~Increases in operating expenses in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same periods in ~~2021~~2022 were as follows:

•Salaries, benefits and employer taxes were lower during the third quarter and first nine months of 2022 when compared with the same periods in 2021 due to a net decrease in headcount since September 30, 2021, including the contribution of employees from CME Group's optimization businesses to the new joint venture with IHS Markit in September 2021.

•~~A decrease~~An increase in our non-qualified deferred compensation liability during the ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, the impact of which does not affect net income because of an equal and offsetting change in investment income, contributed to ~~a decrease~~an increase in compensation and benefits expense.

•Salaries, benefits and employer taxes were higher during the first quarter of 2023 when compared with the same period in 2022, due to an increase in headcount during the year, which is primarily attributable to additional headcount in workforce in the company's international locations.

•Professional fees and outside services expenses increased due to a greater reliance on consultants, specifically for the Google Cloud transformation project as well as an increase in legal fees related to our business activities and product offerings. The increase in professional fees was partially offset by a decrease in NEX integration fees, which have steadily declined since the second half of 2021.

•The increase in expense related to technology support services was primarily driven by higher software license fees and third party services to support the ongoing Google Cloud transformation project.

•In the ~~third~~first quarter ~~and first nine months~~ of ~~2022,~~2023, we recognized a net ~~gain~~loss of ~~$10.5 million and $23.6~~$0.7 million, compared with a net gain of ~~$3.2~~$4.3 million ~~and net loss of $0.2 million in~~during the same ~~periods~~period in ~~2021,~~2022, due to currency exchange rate fluctuations. Gains and losses from exchange rate fluctuations are recognized in the consolidated

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statements of net income when subsidiaries with a U.S. dollar functional currency hold certain monetary assets and liabilities denominated in foreign currencies.

•Professional fees and outside services expenses decreased due to one-time legal and other professional fees incurred in the third quarter of 2021 related to our joint venture with IHS Markit. The decreases in professional fees were partially offset by increases in consulting fees attributable to CME Group's partnership with Google Cloud, which was signed in November 2021.

•~~Employee separation and retention costs were lower during the third quarter and first nine months of 2022 due to lower reductions in workforce compared with the same periods in 2021.~~

~~Increases~~Decreases in operating expenses in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021~~2022 were as follows:

•◦~~Bonus~~The decrease in building maintenance expense ~~increased~~ in the ~~third~~first quarter of 2023 was driven by a decline in construction and ~~first nine months~~relocation expenses related to the development of ~~2022 largely due to our performance relative to our 2022 cash earnings target when compared with~~ the ~~same periods~~SOFR options trading floor, which was completed in ~~2021.~~

•Increases in licensing and other fee agreements expense were due to higher volumes for certain equity products in the third quarter and first nine months of 2022 compared with the same periods in 2021.2022.

Non-Operating Income (Expense)


		Quarter Ended September 30,					Nine Months Ended September 30,						Quarter Ended March 31,
(dollars in millions)	(dollars in millions)	2022		2021		Change	2022		2021		Change	(dollars in millions)		2023		2022		Change
Investment income	Investment income	$	686.2	$	145.8	n.m.	$	1,046.2	$	239.1	n.m.	Investment income		$	1,357.7	$	73.1	n.m.
Interest and other borrowing costs	Interest and other borrowing costs	(40.4)		(41.8)		(3)	(122.8)		(125.0)		(2)	Interest and other borrowing costs		(39.9)		(42.5)		(6)	%
Equity in net earnings of unconsolidated subsidiaries	Equity in net earnings of unconsolidated subsidiaries	76.5		66.4		15	237.1		178.3		33	Equity in net earnings of unconsolidated subsidiaries		78.2		73.3		7
Other non-operating income (expense)	Other non-operating income (expense)	(581.1)		311.8		n.m.	(845.1)		268.4		n.m.	Other non-operating income (expense)		(1,152.8)		(46.7)		n.m.
Total Non-Operating	Total Non-Operating	$	141.2	$	482.2	(71)	$	315.4	$	560.8	(44)	Total Non-Operating		$	243.2	$	57.2	n.m.

n.m. not meaningful

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Investment income. ~~In the third quarter and first nine months of 2022 when compared with the same periods in 2021, there were increases in earnings~~Earnings from cash performance bond and guaranty fund contributions that are reinvested increased in the first quarter of 2023 when compared with the same period in 2022, due to a higher ~~rates~~rate of interest earned in the cash accounts at the Federal Reserve Bank of Chicago following multiple interest rate hikes in 2022 and early 2023. In the first ~~nine months of 2022. In the third~~ quarter of ~~2022~~2023 and ~~2021,~~2022, earnings from cash performance bond and guaranty fund contributions were ~~$676.8~~$1,256.3 million and ~~$54.6~~$73.6 million, respectively. In the first nine months of 2022 and 2021, earnings from cash performance bond and guaranty fund contributions were $1.0 billion and $116.6 million, respectively.The increases in income were partially offset by decreases inrespectively. We also recognized higher net realized and unrealized gains on investments ~~and decreases in earnings on our deferred compensation plan, the impact of which does not affect net income because of an equal and offsetting change in compensation and benefits expense.~~

~~Equity in net earnings (losses) of unconsolidated subsidiaries.~~ ~~Higher income generated from our S&P/Dow Jones Indices LLC (S&P/DJI) business venture contributed to an increase in equity in net earnings of unconsolidated subsidiaries~~ in the ~~third~~first quarter ~~and first nine months~~ of ~~2022 when compared with the same periods in 2021. We also recognized our share of net earnings on our investment in OSTTRA, our new joint venture with IHS Markit that was formed in September 2021.~~2023.

Other income (expense). ~~In the third quarter and first nine months of 2022 when compared with the same periods in 2021, we~~We recognized higher expenses related to the distribution of interest earned on performance bond collateral reinvestments to the clearing firms in conjunction with higher interest income earned on our reinvestment during the first quarter of 2023 when compared with the same period in 2022. This was due to a higher Federal Funds rate in ~~early 2022.~~2023 compared to the prior year period. In the ~~third~~first quarter of 2023 and 2022, ~~and 2021, expenses~~expense related to the distribution of interest earned on collateral reinvestments ~~were $589.7~~was $1,163.5 million and ~~$35.5~~$48.4 million, respectively. In the first nine months of 2022 and 2021, expenses related to the distribution of interest earned on collateral reinvestments were $861.6 million and $82.2 million, respectively. In the third quarter of 2021, we recognized a net gain of $343.5 million on the deconsolidation and contribution of our optimization business to OSTTRA.

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Income Tax Provision

The following table summarizes the effective tax rates for the periods presented:

2022 2021
Quarter ended September 30 22.8 % 15.5 %
Nine months ended September 30 22.9 % 21.9 %


	2023		2022


Quarter ended March 31	23.6	%	22.4	%

The overall effective tax rate increased in the ~~third~~first quarter ~~and first nine months~~ of ~~2022~~2023 when compared with the same ~~periods~~period in ~~2021.~~2022. In the ~~third~~first quarter of ~~2021,~~2022, we recognized a ~~net gain of $343.5 million on~~benefit related to the ~~deconsolidation and contribution of our optimization business to OSTTRA, which was not taxable.~~settlement for various tax audits.

Liquidity and Capital Resources

Sources and Uses of Cash. Net cash provided by operating activities increased in the first ~~nine months~~quarter of ~~2022~~2023 when compared with the same period in ~~2021~~2022, largely due to an increase in ~~trading~~revenue resulting from higher volume and ~~revenue as well as an overall decrease in operating expenses.~~fee increases. Net cash used in investing activities ~~was higher~~remained relatively flat during the first ~~nine months~~quarter of ~~2022~~2023 when compared with the same period in ~~2021 largely due to the additional investment in S&P/DJI in the first nine months of~~ 2022. Cash used in financing activities was higher during the first ~~nine months~~quarter of ~~2022~~2023 when compared with the same period in ~~2021~~2022, due to a decrease in cash performance bonds and guaranty fund contributions.

Debt Instruments. The following table summarizes our debt outstanding at ~~September 30, 2022:~~March 31, 2023:


(in millions)	Par Value
Fixed rate notes due May 2023, stated rate of 4.30%	€	15.0
Fixed rate notes due March 2025, stated rate of 3.00% (1)	$	750.0
Fixed rate notes due June 2028, stated rate of 3.75%	$	500.0
Fixed rate notes due March 2032, stated rate of 2.65%	$	750.0
Fixed rate notes due September 2043, stated rate of 5.30% (2)	$	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 on the notes effectively became fixed at a rate of 3.11%.

(2)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 November 2026. 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 September 30, 2021, giving effect to share repurchases made and special dividends paid during the term of the agreements (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 CME Clearing, in the event of a liquidity constraint or default by a depositary (custodian for our collateral), in the event of a

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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 ~~September 30, 2022,~~March 31, 2023, guaranty fund contributions available to collateralize the facility totaled ~~$6.9~~$7.4 billion. We have the option to request an increase in the line from $7.0 billion to $10.0 billion. 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.

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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 ~~September 30, 2022,~~March 31, 2023, we have excess borrowing capacity for general corporate purposes of approximately $2.3 billion under our multi-currency revolving senior credit facility.

At ~~September 30, 2022,~~March 31, 2023, 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 ~~September 30, 2022,~~March 31, 2023, the letters of credit totaled ~~$330.0~~$360.0 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 ~~September 30, 2022:~~March 31, 2023:

Short-Term

Long-Term

Rating Agency

Debt Rating

Outlook

Standard & Poor’s Global Ratings

A1+

AA-

Stable

Moody’s Investors Service, Inc.

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 totaled ~~$2.1~~$1.6 billion and ~~$2.8~~$2.7 billion at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, 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 other current assets or other assets in the consolidated balance sheets.

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

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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.

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ITEM 3.			QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are subject to various market risks, including those caused by changes in interest rates, credit, foreign currency exchange rates and equity prices. There have not been material changes in our exposure to market risk since December 31, ~~2021.~~2022. Refer to Item 7A. of CME Group’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, filed with the SEC on February ~~25, 2022,~~27, 2023, for additional information.


ITEM 4.			CONTROLS AND PROCEDURES

(a) Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.

(b) Changes in Internal Control Over Financial Reporting. As required by Rule 13a-15(d) under the Exchange Act, the company’s management, including the company’s Chief Executive Officer and Chief Financial Officer, have evaluated the company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) to determine whether any changes occurred during the quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting. There were no changes in the company’s internal control over financial reporting which occurred during the fiscal quarter ended ~~September 30, 2022,~~March 31, 2023, that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

PART II. OTHER INFORMATION


ITEM 1.			LEGAL PROCEEDINGS

The disclosure under “Legal and Regulatory Matters” in Note 8.6. Contingencies in the Notes to Unaudited Consolidated Financial Statements in Item 1 of Part I of this report is incorporated herein by reference. Such disclosure includes updates to the legal proceedings disclosed in the company’s Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, filed with the SEC on February ~~25, 2022.~~27, 2023.


ITEM 1A.			RISK FACTORS

There have been no material changes in the company's risk factors from those disclosed in the company's Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, filed with the SEC on February ~~25, 2022.~~27, 2023.


ITEM 2.			UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

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)
July 1 to July 31 80 $ 202.99 — $ —
August 1 to August 31 — — — —
September 1 to September 30 88,188 191.04 — —
Total 88,268 —


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) of shares that May Yet Be Purchased Under the Plans or Programs (in millions)
January 1 to January 31	—	$	—	—	$	—
February 1 to February 28	186	184.10		—	—
March 1 to March 31	878	182.20		—	—
Total	1,064			—

(1)Shares purchased consist of an aggregate of ~~88,268~~1,064 shares of Class A common stock surrendered in the ~~third~~first quarter of ~~2022~~2023 to satisfy employees’ tax obligations upon the vesting of restricted stock.

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ITEM 6.			EXHIBITS



10.1 (1)						Retirement Agreement, effective as of March 29, 2023, between Chicago Mercantile Exchange Inc. and Sean Tully (incorporated by reference to Exhibit 10.1 to CME Group’s Current Report of Form 8-K, filed with the SEC on March 30, 2023).

10.2 (1)						CME Group Inc. Severance Plan, as amended and restated effective March 7, 2023 (incorporated by reference to Exhibit 10.1 to CME Group’s Current Report on Form 8-K, filed with the SEC on March 10, 2023).







31.1						Section 302 Certification—Terrence A. Duffy

31.2						Section 302 Certification—~~John W. Pietrowicz~~Lynne Fitzpatrick

32.1						Section 906 Certification

101						The following materials from CME Group Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended ~~September 30, 2022,~~March 31, 2023, formatted in Inline XBRL (Xtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Equity, (v) the Consolidated Statements of Cash Flows and (vi) Notes to Unaudited Consolidated Financial Statements, tagged as blocks of text.

104						Cover Page Interactive Data File included in the Inline XBRL Document Set for Exhibit 101.

101.DEF						XBRL Taxonomy Extension Definition Linkbase

101.LAB						XBRL Taxonomy Extension Label Linkbase Document

101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document

(1)						Management contract, compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CME Group Inc.

(Registrant)

Dated: ~~November 2, 2022~~May 3, 2023

By:

/s/ ~~John W. Pietrowicz~~Lynne Fitzpatrick

~~John W. Pietrowicz~~Lynne Fitzpatrick

Senior Managing Director and Chief Financial Officer & Senior Managing
Director Finance

Principal Financial Offer and
Duly Authorized Officer

3632


	Nine Months Ended, September 30, 2022
	Preferred Stock (Shares)	Class A Common Stock (Shares)	Class B Common Stock (Shares)	Preferred Stock, Common Stock and Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total CME Group Shareholders' Equity
Balance at December 31, 2021	4,584	358,599	3	$	22,193.9	$	5,151.9	$	53.5	$	27,399.3
Net income						2,053.1				2,053.1
Other comprehensive income (loss)								(153.3)		(153.3)
Dividends on common and preferred stock of $3.00 per share						(1,093.3)				(1,093.3)


Exercise of stock options		1		0.1						0.1

Vesting of issued restricted Class A common stock		239		(21.7)						(21.7)
Shares issued to Board of Directors		19		4.0						4.0
Shares issued under Employee Stock Purchase Plan		19		3.8						3.8
Stock-based compensation				58.8						58.8
Balance at September 30, 2022	4,584	358,877	3	$	22,238.9	$	6,111.7	$	(99.8)	$	28,250.8


	Nine Months Ended, September 30, 2021
	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, 2020	358,110	3	$	21,189.1	$	4,995.9	$	134.9	$	26,319.9	$	31.6	$	26,351.5
Net income					2,011.2				2,011.2		0.5		2,011.7
Other comprehensive income (loss)							(97.6)		(97.6)				(97.6)
Dividends on common stock of $2.70 per share					(969.7)				(969.7)				(969.7)
Purchase of non-controlling interest			(19.9)						(19.9)		(32.1)		(52.0)

Exercise of stock options	102		5.5						5.5				5.5
Vesting of issued restricted Class A common stock	329		(31.2)						(31.2)				(31.2)
Shares issued to Board of Directors	13		2.9						2.9				2.9
Shares issued under Employee Stock Purchase Plan	20		4.4						4.4				4.4
Stock-based compensation			56.6						56.6				56.6
Balance at September 30, 2021	358,574	3	$	21,207.4	$	6,037.4	$	37.3	$	27,282.1	$	—	$	27,282.1


	Quarter Ended, September 30, 2021
	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 June 30, 2021	358,305	3	$	21,222.7	$	5,434.5	$	106.0	$	26,763.2	$	24.2	$	26,787.4
Net income					926.5				926.5		(0.2)		926.3
Other comprehensive income (loss)							(68.7)		(68.7)				(68.7)
Dividends on common stock of $0.90 per share					(323.6)				(323.6)				(323.6)

Purchase of non-controlling interest			(15.5)						(15.5)		(24.0)		(39.5)
Exercise of stock options	43		2.3						2.3				2.3
Vesting of issued restricted Class A common stock	226		(17.7)						(17.7)				(17.7)


Stock-based compensation			15.6						15.6				15.6
Balance at September 30, 2021	358,574	3	$	21,207.4	$	6,037.4	$	37.3	$	27,282.1	$	—	$	27,282.1


	2021
(in millions)	As Previously Reported		Adjustments	Revised

Net cash provided by (used in) financing activities	$	(1,896.4)	62,409.8	$	60,513.4
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents	(171.5)		62,409.8	62,238.3


	2022		2021
Quarter ended September 30	22.8	%	15.5	%
Nine months ended September 30	22.9	%	21.9	%