CME GROUP INC.

Previous wording

We estimate the following net changes in clearing and transaction fees based on the changes in total contract volume and the change in average rate per contract for futures and options during the first quarter of 2026 when compared with the same period in 2025.

Current wording

We estimate the following net changes in clearing and transaction fees based on the changes in total contract volumes and the changes in average rate per contract for futures and options during the second quarter and first six months of 2026 when compared with the same periods in 2025.

Previous wording

Market uncertainty remained high throughout the first quarter of 2026. Each of our asset classes experienced significant volatility as a result of the heightened geopolitical conflict in the Middle East, which has caused a ripple effect throughout the world economy. This resulted in uncertainty surrounding the United States Federal Reserve’s (Federal Reserve) interest rate policy decision and market volatility within the equity and foreign exchange markets. In addition, uncertainty remained high within the energy and metals markets as the Middle East conflict caused significant supply disruptions and led market participants to turn to precious metals amid this uncertainty. We believe these factors contributed to an increase in volume in the first quarter of 2026 when compared with the same period in 2025.

Current wording

Overall market volatility was high in early 2026 due to the heightened geopolitical conflict in the Middle East, which has caused a ripple effect throughout the world economy. In addition, uncertainty remained high within the energy and metals markets as the Middle East conflict caused significant supply disruptions and led market participants to turn to precious metals amid this uncertainty. However, in the second quarter of 2026, overall market volatility subsided relative to periods of very high volatility earlier in the year as market uncertainty tapered. We believe these factors contributed to volume remaining relatively flat in the second quarter of 2026 when compared to the same period in 2025 and an increase in volume in the first six months of 2026 when compared with the same period in 2025.

Previous wording

In the first quarter of 2026, interest rate contract volume was higher compared with the same period in 2025 due to an increase in market volatility. We believe this was due to the heightened geopolitical conflict in the Middle East. This led to uncertainty surrounding the Federal Reserve's future interest rate policy decisions. We believe these factors contributed to higher overall interest rate volume in the first quarter of 2026 when compared with the same period in 2025.

Current wording

Overall interest rate contract volume increased in the first six months of 2026 when compared with same period in 2025 due to periods of high market volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which led to initial uncertainty surrounding the Federal Reserve's future interest rate policy decisions.

Previous wording

Equity index contract volume increased in the first quarter of 2026 when compared with the same period in 2025 due to higher overall volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which caused significant uncertainty throughout the equity markets. In addition, a market shift out of the Nasdaq-100 into the smaller cap Russell 2000 resulted in additional volume in that complex.

Current wording

Equity index contract volumes increased in the second quarter and first six months of 2026 when compared with the same periods in 2025. We believe these increases were due to the geopolitical conflict in the Middle East in early 2026, which caused significant uncertainty throughout the equity markets. In addition, market shifts in the Nasdaq-100 and Russell 2000 resulted in additional volume within both complexes.

Previous wording

Our cryptocurrency contract volume was higher in the first quarter of 2026 with the same period in 2025. We believe this was due to increased volatility, which resulted in a broader cryptocurrency market repricing.

Current wording

Our cryptocurrency contract volumes increased in the second quarter and first six months of 2026 when compared with the same periods in 2025. We believe the increased volatility resulted in a broader cryptocurrency market repricing.

Previous wording

In the first quarter of 2026, overall foreign exchange volume increased when compared with the same period in 2025 mainly due to the heightened geopolitical conflict in the Middle East. This led to higher Australian dollar contract volume due to uncertainty in the commodities and energy markets. In addition, increased adoption of our foreign exchange products by market participants also contributed to the increase in foreign exchange volume. We believe these factors contributed to higher overall foreign exchange contract volume in the first quarter of 2026 when compared with the same period in 2025.

Current wording

In the second quarter and first six months of 2026, overall foreign exchange volumes decreased when compared with the same periods in 2025. Overall market volatility subsided in the second quarter of 2026 following periods of very high volatility in 2025 due to uncertainty surrounding the United State's position on tariffs. However, the geopolitical conflict in the Middle East in early 2026 led to higher Australian dollar contract volumes due to uncertainty in the commodities and energy markets. We believe these factors contributed to lower overall foreign exchange contract volume in the second quarter and first six months of 2026 when compared with the same periods in 2025.

Previous wording

Overall commodity contract volume increased in the first quarter of 2026 when compared with the same period in 2025. We believe the increase was due to higher overall market volatility as a result of the heightened geopolitical conflict in the Middle East, which caused disruptions within the grain market supply routes. In addition, the conflict within the Middle East also caused a greater demand for crop-based fuels as a result of crude oil pricing uncertainties. We believe these factors contributed to higher overall commodity volume in the first quarter of 2026 compared with the same period in 2025.

Current wording

Overall commodity contract volumes increased in the second quarter and first six months of 2026 when compared with the same periods in 2025. The heightened geopolitical conflict in the Middle East in early 2026 caused disruptions within the grain market supply routes. The conflict also caused a greater demand for crop-based fuels as a result of crude oil pricing uncertainties. We believe these factors contributed to higher overall commodity volume in the second quarter and first six months of 2026 compared with the same periods in 2025.

Previous wording

The average rate per contract decreased in the first quarter of 2026 when compared with the same period in 2025. The decrease was largely due to an increase in micro contract volume, specifically within equities, energy and metals, as these typically have a lower average rate per contract. This was partially offset by a change in product mix. Energy and metal contract volume increased by 3 percentage points as a percent of total volume, while other products collectively decreased by 3 percentage points. In general, energy and metals products have a higher rate per contract compared with the remaining contracts.

Current wording

The average rate per contract decreased in the second quarter and first six months of 2026 when compared with the same periods in 2025. The decrease was largely due to an increase in micro contract volume, specifically within equities, energy and metals, as well as higher member trading as a percentage of total volume. In the first six months of 2026, the decrease was partially offset by a change in product mix. Energy and metal contract volume increased by 1 percentage point as a percent of total volume, while other products collectively decreased by 1 percentage point. In general, energy and metals products have a higher rate per contract compared with the remaining contracts. In addition, the overall decrease in the second quarter of 2026 was partially offset by an increase in certain clearing and transaction fees which went into effect on April 1, 2026.

Previous wording

Total clearing and transaction fees revenues in the first quarter of 2026 include $76.6 million of transaction fees attributable to the cash markets business, compared with $71.0 million in the first quarter of 2025. This revenue includes BrokerTec Americas LLC's fixed income volume and EBS's foreign exchange volume.

Current wording

Total clearing and transaction fees revenues in the second quarter and first six months of 2026 include $73.9 million and $150.5 million, respectively, of transaction fees attributable to the cash markets business, compared with $74.6 million and $145.6 million, respectively, in the second quarter and first six months of 2025. This revenue includes BrokerTec Americas LLC's fixed income volume and EBS's foreign exchange volume.

Previous wording

Overall average daily notional values for the cash markets business were higher in the first quarter of 2026 when compared with the same period in 2025 due to higher overall volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which caused significant macro-economic uncertainty throughout the global economy.

Current wording

Overall average daily notional values for the cash markets business were higher in the second quarter and first six months of 2026 when compared with the same periods in 2025 due to higher overall volatility. We believe this was due to the heightened geopolitical conflict in the Middle East, which caused significant macro-economic uncertainty throughout the global economy. However, more certainty surrounding the Federal Reserves interest rate policy decision led to lower overall U.S. Treasury volumes in second quarter and first six months of 2026 when compared with the same periods in 2025. We believe these factors led to higher overall cash market volume in the second quarter and first six months of 2026 compared with the same periods in 2025.

Previous wording

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 individual firm represented at least 10% of our clearing and transaction fees in the first quarter of 2026. 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.

Current wording

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 individual firm represented at least 10% of our clearing and transaction fees in the first six months of 2026. 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.

Previous wording

Market data and information services. During the first quarter of 2026, overall market data and information services revenues increased when compared with the same period in 2025, largely due to higher usage of certain products, increased demand by new customer segments, and price increases for certain products.

Current wording

Market data and information services. During the second quarter and first six months of 2026, overall market data and information services revenues increased when compared with the same periods in 2025, largely due to higher usage of certain products, increased demand by new customer segments, and price increases for certain products.

Previous wording

The two largest resellers of our market data represented approximately 26% of our market data and information services revenue in the first quarter of 2026. 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.

Current wording

The two largest resellers of our market data represented approximately 25% of our market data and information services revenue in the first six months of 2026. 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.

Previous wording

Operating expenses increased by $36.1 million in the first quarter of 2026 when compared with the same periods in 2025. The following table shows the estimated impacts of key factors resulting in the changes in operating expenses:

Current wording

Operating expenses increased by $36.4 million and $72.5 million in the second quarter and first six months of 2026 when compared with the same periods in 2025. The following table shows the estimated impacts of key factors resulting in the changes in operating expenses:

Previous wording

Increases in operating expenses in the first quarter of 2026 when compared with the same period in 2025 were as follows:

Current wording

Increases in operating expenses in the second quarter and first six months of 2026 when compared with the same periods in 2025 were as follows:

Previous wording

•License fees expense was higher primarily due to record volumes for certain equity products as well as the addition of multiple new products which launched subsequent to the first quarter of 2025.

Current wording

•License fees expenses were higher primarily due to record volumes for certain equity products.

Previous wording

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

Current wording

•The increases in technology support services expense were primarily driven by higher third party services to support the ongoing Google Cloud transformation project.

Previous wording

•Rent expense was higher primarily due to a gain on lease contraction recognized in the first quarter of 2025.

Current wording

•Rent expenses were higher primarily due to gains on lease contractions recognized in the first six months of 2025.

Previous wording

•Salaries, benefits and employer taxes expense was higher as a result of salary increases that went into effect during the first quarter of 2026 as well as an increase in headcount, which was primarily attributable to additional headcount in the company's international locations.

Current wording

•Salaries, benefits and employer taxes expenses were higher in the first six months of 2026 as a result of salary increases that went into effect during the first quarter of 2026 as well as an increase in headcount, which was primarily attributable to additional headcount in the company's international locations.

Previous wording

•Marketing expense increased as a result of higher sponsorship and event costs in the first quarter of 2026.

Current wording

•Marketing expense increased as a result of higher sponsorship, media campaigns and event costs in the first six months of 2026.

Previous wording

Decreases in operating expense in the first quarter of 2026 when compared with the same period in 2025 were as follows:

Current wording

Decreases in operating expenses in the second quarter and first six months of 2026 when compared with the same periods in 2025 were as follows:

Previous wording

•In the first quarter of 2026, we recognized a net gain of $0.9 million, compared with a net loss of $2.3 million during the same period in 2025, due to currency exchange rate fluctuations. Gains and losses from exchange rate fluctuations are recognized in the consolidated statements of net income when subsidiaries with a U.S. dollar functional currency hold certain monetary assets and liabilities denominated in foreign currencies.

Current wording

•In the second quarter and first six months of 2026, we recognized a net loss of $0.3 million and a net gain of $0.5 million, respectively, compared with a net losses of $3.6 million and $5.9 million, respectively, during the same periods in 2025, due to currency exchange rate fluctuations. Gains and losses from exchange rate fluctuations are recognized in the consolidated statements of net income when subsidiaries with a U.S. dollar functional currency hold certain monetary assets and liabilities denominated in foreign currencies.

Previous wording

Investment income. Earnings from cash performance bond and guaranty fund contributions that are reinvested increased in the first quarter of 2026 when compared with the same period in 2025 due to higher reinvestment balances despite decreases in the average rate of return on the reinvestment balances. In the first quarter of 2026 and 2025, earnings from cash performance bond and guaranty fund contributions were $1,371.1 million and $873.6 million, respectively. The increase was partially offset by higher net unrealized losses in the first quarter of 2026.

Current wording

Earnings from cash performance bond and guaranty fund contributions that are reinvested increased in the first six months of 2026 when compared with the same period in 2025. This was mainly due to higher reinvestment balances despite a lower average rate of return on the reinvestment balances. In the first six months of 2026, earnings from cash performance bond and guaranty fund contributions were $2,759.8 million compared with $2,361.2 million in first six months of 2025. The increase was partially offset by higher net unrealized losses in the first six months of 2026.

Previous wording

Equity in net earnings (losses) of unconsolidated subsidiaries. Higher income generated from our S&P Dow Jones Indices LLC business venture contributed to increases in equity in net earnings (losses) of unconsolidated subsidiaries in the first quarter of 2026 when compared with 2025.

Current wording

Equity in net earnings (losses) of unconsolidated subsidiaries. Higher income generated from our S&P Dow Jones Indices LLC business venture contributed to an increase in equity in net earnings (losses) of unconsolidated subsidiaries in the first six months of 2026 when compared with 2025. However, in the second quarter of 2026, equity in net earnings (losses) of unconsolidated subsidiaries was lower as a result of the sale of our OSTTRA joint venture which occurred in the fourth quarter of 2025.

Previous wording

Other non-operating income (expense). We recognized higher expenses related to the distribution of interest earned on performance bond collateral reinvestments to the clearing firms during the first quarter of 2026 when compared with the same period in 2025. In the first quarter of 2026 and 2025, expenses related to the distribution of interest earned on collateral reinvestments were $1,249.2 million and $804.8 million, respectively.

Current wording

We recognized higher expense related to the distribution of interest earned on performance bond collateral reinvestments to the clearing firms during the first six months of 2026 when compared with the same period in 2025, mainly due to higher overall cash collateral balances. In the first six months of 2026, expense related to the distribution of interest earned on collateral reinvestments was $2,514.9 million, compared with $2,179.3 million in the first six months of 2025.

Previous wording

Sources and Uses of Cash. Net cash provided by operating activities increased in the first quarter of 2026 when compared with the same period in 2025, which was largely due to an increase in trading volume and higher interest earned on reinvestment of collateral, net of distributions. Cash used in investing activities remained relatively consistent in the first quarter of 2026 when compared with the same period in 2025. Cash provided by financing activities was lower during the first quarter of 2026 when compared with the same period in 2025 due to a smaller increase in cash performance bonds and guaranty fund contributions.

Current wording

Sources and Uses of Cash. Net cash provided by operating activities increased in the first six months of 2026 when compared with the same period in 2025, which was largely due to an increase in trading volume and higher interest earned on reinvestment of collateral, net of distributions. Cash used in investing activities remained relatively consistent in the first six months of 2026 when compared with the same period in 2025. Cash used in financing activities was higher during the first six months of 2026 when compared with the same period in 2025 due to an increase in share repurchases.

Previous wording

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 the clearing house operated by CME, in the event of a liquidity constraint or default by a depositary (custodian for our collateral), in the event of a 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 March 31, 2026, guaranty fund contributions available to collateralize the facility totaled $10.8 billion. We have the option to increase the line from $7.0 billion to $10.0 billion with the consent of the agent and lenders providing the additional funds. 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.

Current wording

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 the clearing house operated by CME, in the event of a liquidity constraint or default by a depositary (custodian for our collateral), in the event of a 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 June 30, 2026, guaranty fund contributions available to collateralize the facility totaled $10.3 billion. We have the option to increase the line from $7.0 billion to $10.0 billion with the consent of the agent and lenders providing the additional funds. 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.

Previous wording

Liquidity and Cash Management. Cash and cash equivalents, excluding restricted cash and restricted cash equivalents, totaled $2.4 billion and $4.4 billion at March 31, 2026 and December 31, 2025, 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 cash performance bonds and guaranty fund contributions, other current assets or other assets in the consolidated balance sheets. Cash performance bonds and guarantee fund contribution assets are deemed to be restricted cash and restricted cash equivalents.

Current wording

Liquidity and Cash Management. Cash and cash equivalents, excluding restricted cash and restricted cash equivalents, totaled $2.1 billion and $4.4 billion at June 30, 2026 and December 31, 2025, 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 cash performance bonds and guaranty fund contributions, other current assets or other assets in the consolidated balance sheets. Cash performance bonds and guarantee fund contribution assets are deemed to be restricted cash and restricted cash equivalents.

Previous wording

We maintain a share repurchase program under which we are authorized to repurchase up to $3.0 billion of our outstanding Class A common stock, par value $0.01 per share (the common stock), from time to time through open market transactions, block trades, privately negotiated purchase transactions or other purchase techniques and may include purchases effected pursuant to one or more trading plans established pursuant to Rule 10b5-1 under the Exchange Act. The timing of any repurchases and the number of shares repurchased under the share repurchase program are within our discretion and may be affected by various factors, including general market and economic conditions; the market price of the common stock; CME Group’s earnings, financial condition, capital requirements and levels of indebtedness; legal requirements; and other considerations. The share repurchase program has no expiration date, does not obligate us to acquire any particular amount of common stock and may be modified, suspended or terminated at any time. As of March 31, 2026, the maximum remaining value of shares to be repurchased was$2.2 billion.

Current wording

We maintain a share repurchase program under which we are authorized to repurchase up to $3.0 billion of our outstanding Class A common stock, par value $0.01 per share (the common stock), from time to time through open market transactions, block trades, privately negotiated purchase transactions or other purchase techniques and may include purchases effected pursuant to one or more trading plans established pursuant to Rule 10b5-1 under the Exchange Act. The timing of any repurchases and the number of shares repurchased under the share repurchase program are within our discretion and may be affected by various factors, including general market and economic conditions; the market price of the common stock; CME Group’s earnings, financial condition, capital requirements and levels of indebtedness; legal requirements; and other considerations. The share repurchase program has no expiration date, does not obligate us to acquire any particular amount of common stock and may be modified, suspended or terminated at any time. As of June 30, 2026, the maximum remaining value of shares to be repurchased was $1.5 billion.