Tax expense knocks CME

City A.M. Reporter
CME Group’s fourth-quarter profit fell sharply from a year ago, the exchange operator said last night.

The firm’s net income tumbled to $167m (£106m), or 50 cents a share, from $745.9m a year earlier, or $2.25 a share. Revenue fell to $660.9m from $736.5m, it said.

However, stripping out a one-time tax expense of $43.5m and increases in deferred tax liabilities, earnings in the fourth quarter were 63 cents a share, in line with expectations.

Trading in the quarter fell 13 per cent to an average of 10.2m contracts per day. Trading in contracts tied to stock indexes also fell.