Illinois business thrives amid banking turbulence. 2023

CME Group Inc., which is the parent business of the Chicago Mercantile Exchange and the Chicago Board of Trade, is profiting off the chaos that was caused by the failure of two banks in the United States.

Tuesday was the day when the derivatives market achieved its highest-ever daily trading volume, with 66.25 million contracts being traded throughout the day.

As CME gets its money by charging fees for each contract, the corporation is actually bringing in more income despite the challenging market conditions.

Futures and options that are linked to stock indexes and interest rates are two of the markets that are traded at CME. These markets give investors the opportunity to hedge their risk or profit from market volatility. Due to the fact that there is a great deal of uncertainty regarding the financial sector and what action the Federal Reserve may take regarding interest rates, the markets are particularly volatile right now.

Terry Duffy, Chairman and Chief Executive Officer of CME Group, said in a prepared statement that “given the extreme volatility in today’s environment, which has been exacerbated by the recent failures of Silicon Valley Bank and Signature Bank, we are seeing a flight to futures as participants turn to our deeply liquid markets.” “We are seeing a flight to futures as participants turn to our deeply liquid markets.”

It is impossible to exaggerate how important it is to have effective risk management. As investors attempt to safeguard their portfolios amidst increased volatility, our futures and options on futures products are performing exactly as they were intended to do, said Duffy, who added that this is what our products were supposed to accomplish.

On Tuesday, new individual volume records were set for interest rate futures and options, with a total of 41.9 million contracts being traded. A volume record of well over 17.8 million contracts was reached in the trading of futures and options on major stock indices.

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