CME

MKT CAP $19.7BP/E 25.0DIV YIELD 3.81%FCF YIELD 21.41%REV TTM $6.8B +5.1%NET INCOME $4.3B +13.8%NET CASH —52W 218.58 – 326.46SEC XBRL · TTM TO Invalid Date

How CME rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

Text kept

57%

of sentences unchanged

Added

134

new sentences

Dropped

110

sentences removed

Length

+653

words, now 14,067

New in FY2025

Item 1A - Risk Factors" beginning o n page 16 f or a description of competitive risks and uncertainties.
(ICE), Cboe Global Markets (Cboe), Euronext N.V., the Hong Kong Exchanges and Clearing Limited (HKEX), and Deutsche Börse AG.
We also face competition from new entrants into the marketplace, including newly launched FMX Futures Exchange, as well as digital asset platforms and emerging prediction markets.
Competition in our Derivatives Clearing Business In recent years there has been increased competition in the provision of clearing services for derivatives, and we expect competition to continue to increase in connection with compliance with Dodd-Frank, EMIR 3.0, Basel III, MiFID II and other various laws and regulations.
Our competitors in the derivatives clearing services space include, among others, companies such as ICE, LCH Group, OCC, Cboe Clear, DTCC, HKEX, Japan Securities Clearing Corporation, LME Clear and Eurex Clearing.
Several new derivatives clearing operators have gained approval in the U.S. in the last decade.
We believe competition in derivatives clearing services is based on, among other things, the value of providing customers with capital and margin efficiencies; quality and reliability of the services; creditworthiness of the clearing house; regulatory costs; timely delivery of the services; reputation; diversity of the service offerings; confidentiality of positions and information security protective measures; and the fees charged for the services provided.
Competition in our Securities Clearing Business We plan to launch our securities clearing business later in 2026 beginning with cash U.S.
FICC, a subsidiary of DTCC, is the primary player in the U.S.
Treasury clearing market with new entrants, including ICE Clear Credit’s Treasury Clearing Service.
We believe competition in securities clearing will be based upon principles similar to the derivatives clearing business.
In the fixed income space, there are also multiple providers of U.S.
Treasury, European and U.S. repo, and European bond trading, as well as other products such as corporate bonds, municipal bonds, mortgage-backed bonds and agencies, and a multitude of competitors and new entrants offering single-dealer liquidity, bank-owned multi-participant platforms, streaming and request for quote services, and other broker-and exchange-enabled platforms.
A key strategy of several of these alternative and emerging venues is to compete on price, offering their services at significantly lower rates than the established EBS and BrokerTec platforms.
This strategy aims to draw customers away from our markets, thereby shifting market share.
Competition in our Data Services Business Technology companies, market data and information vendors and front-end software vendors also represent actual and potential competitors because they have their own substantial market data calculation and distribution capabilities that could serve as alternative means for receiving open market data feeds instead of connecting directly to our exchanges.
Regulatory Matters Our businesses are regulated and serve a customer base that includes regulated market participants, and as such, we are subject to extensive regulation, primarily in the U.S., UK and EU.
Regulation of our Derivatives Business, Derivatives Clearing Business, and Swap Data Repositories The operation of our U.S. futures exchanges and our derivatives clearing business are subject to extensive regulation by the CFTC that requires our regulated subsidiaries to satisfy the requirements of certain core principles relating to the operation and oversight of our markets and our clearing house.
The CFTC carries out the regulation of the futures and swaps markets and clearing houses in accordance with the provisions of the Commodity Exchange Act (CEA) as amended by, among others, the Commodity Futures Modernization Act and Dodd-Frank.
In connection with the global offering of our products and clearing services, this business is also subject to the rules and regulations of the local jurisdictions in which we conduct business, including the European Securities and Markets Authority, the UK Financial Conduct Authority (FCA) and Bank of England, the Netherlands Authority for the Financial Markets (AFM) and the Federal Financial Supervisory Authority in Germany, among others.
FanDuel Prediction Markets LLC, which is part of our joint venture with FanDuel, is a registered FCM.
As an FCM, it is subject to the CEA and the related CFTC regulations and the applicable rules and provisions of the National Futures Association.
It is also subject to our applicable exchange rulebooks.
Regulation of our Cash Markets Business The operation of BrokerTec subjects us to regulation by the Financial Industry Regulatory Authority and the SEC as a broker-dealer and alternative trading system operator.
BrokerTec is also subject to regulation in the UK by the FCA, as a multilateral trading facility (MTF), in the EU by the AFM, as a regulated market and by the applicable regulators in Singapore and Canada.
Our EBS business holds various permissions, approvals and exemptions globally, including those that subject certain of its activities to FCA, AFM, Monetary Authority of Singapore, Australian Securities and Investments Commission, Hong Kong Monetary Authority and Canadian oversight.
BrokerTec Americas is a member of the FICC, through which it clears U.S.
Our BrokerTec business operated in the EU also connects to LCH Limited, LCH SA, BME Meff Clear and Cassa di Compensazione e Garanzia, which act as central clearing participants in the European and UK gilt repo markets.
Regulation of our Securities Clearing Business Our operation of CMESC subjects us to regulation by the SEC as a securities clearing agency under the Securities Exchange Act and its related rules and regulations.
Regulation of our Data Services Business Our subsidiary, CME Benchmark, is a registered benchmark administrator, authorized and supervised by the FCA under the UK Benchmark Regulations.
CME Benchmark administers a variety of different multi-asset class data products, including CME Term SOFR.
Key Areas of Focus We actively monitor and participate in the domestic and international legislative and rulemaking processes for our industry, including providing government testimony, commenting on proposed legislation and rulemaking, and engaging with our regulators and policymakers on potential impacts to the marketplace.
We are also focused on impacts from the new U.S. administration and its federal regulatory appointees and any anticipated changes that may result.
Our key areas of focus in the regulatory environment are: • The approach to digital assets regulation and market structure legislation, which may affect our existing offerings or our ability to provide future offerings. • The outcome of both litigation and regulatory consideration of issues relating to prediction markets, which could impact our existing and future offerings through our joint venture with FanDuel. • The implementation of rules resulting in negative treatment of the liquidity profile of U.S.
Treasury securities as collateral could result in increased costs to us and our clearing firms. • The implementation of the SEC's mandate for central clearing of U.S.
Treasury securities and potential impacts to the industry.
We plan to launch clearing services under CMESC later in 2026 to help market participants comply with the mandate for U.S.
Treasury transactions (as of December 31, 2026) and repo transactions (as of June 30, 2027). • Basel III Endgame rules.
In July 2023, the Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency jointly proposed changes to the regulatory capital framework for global systemically important banks, to implement international capital standards issued by the Basel Committee on Banking Supervision, which the Fed Vice Chair said will not be implemented as originally proposed.
Additionally, other areas of the U.S. bank capital framework have come into focus as potential changes to the global systemically important bank capital surcharge calculation worksheet have been introduced, which could increase capital requirements. • Financial Stability Board (FSB) consultation proposing that central counterparties (CCPs) maintain separate, dedicated resources and tools for resolution.

and 94 more.

Gone since FY2024

Item 1A - Risk Factors" beginning o n page 16 for a description of competitive risks and uncertainties.
(ICE), Cboe Global Markets (Cboe), Euronext N.V., the Hong Kong Exchanges (HKEx) and Clearing Limited, and Deutsche Börse AG.
We have also seen the emergence of new players in the derivatives exchange business, such as brokerage BGC Group’s launch of FMX Futures Exchange, and in some cases backed by market makers and broker-dealers, as well as crypto platforms.
Competition in our CME Clearing Business In recent years there has been increased competition in the provision of clearing services, and we expect competition to continue to increase in connection with compliance with Dodd-Frank, EMIR 3.0, Basel III, MiFID II and other various laws and regulations.
Our competitors in the clearing services space include, among others, companies such as ICE, LCH Group, OCC, Cboe Clear, Depository Trust & Clearing Corporation, HKEx and Clearing, Japan Securities Clearing Corporation, LME Clear and Eurex Clearing.
Six new derivatives clearing operators have gained approval in the U.S. in the last decade, including: LedgerX Clearing, Nodal Clear, Cboe Clear US, Bitnomial Clearinghouse, ForecastEx and Kalshi Klear.
We believe competition in clearing services is based on, among other things, the value of providing customers with capital and margin efficiencies; quality and reliability of the services; creditworthiness of the clearing house; regulatory costs; timely delivery of the services; reputation; diversity of the service offerings; confidentiality of positions and information security protective measures; and the fees charged for the services provided.
In the fixed income space, there are also multiple providers of treasury, European and U.S. repo, and European bond trading, as well as other products such as corporate bonds, municipal bonds, mortgage-backed bonds and agencies, and a multitude of competitors and new entrants offering single-dealer liquidity, bank-owned multi-participant platforms, streaming and request for quote services, and other broker-and exchange-enabled platforms.
A key strategy of a number of these alternative and emerging venues, is to offer their services at a significantly lower price in comparison to the established EBS and BrokerTec platforms, with the aim of enticing customer business, and the resulting shift of marketshare, away from our markets.
Competition in our Market Data Business Technology companies, market data and information vendors and front-end software vendors also represent actual and potential competitors because they have their own substantial market data calculation and distribution capabilities that could serve as alternative means for receiving open market data feeds instead of connecting directly to our exchange.
Regulatory Matters Our businesses are regulated and serve a customer base that includes regulated market participants, and as such, we are subject to extensive regulation, primarily in the U.S., U.K. and E.U.
Regulation of our Derivatives Business, Derivatives Clearing Business, and Swap Data Repositories Our operation of our U.S. futures exchanges and our derivatives clearing business are subject to extensive regulation by the CFTC that requires our regulated subsidiaries to satisfy the requirements of certain core principles relating to the operation and oversight of our markets and our clearing house.
The CFTC carries out the regulation of the futures and swaps markets and clearing houses in accordance with the provisions of the Commodity Exchange Act as amended by, among others, the Commodity Futures Modernization Act and Dodd-Frank.
In connection with the global offering of our products and clearing services, this business is also subject to the rules and regulations of the local jurisdictions in which we conduct business, including the European Securities and Markets Authority (ESMA), the U.K.
Financial Conduct Authority (FCA) and Bank of England, the Netherlands Authority for the Financial Markets (AFM) and the Federal Financial Supervisory Authority (BaFin) in Germany, among others.
In 2024, our subsidiary, F&O Financial LLC received approval from the National Futures Association (NFA) to operate as an FCM.
F&O Financial was established to prepare for potential future changes in the marketplace.
It is not currently conducting any business.
Regulation of our Cash Markets Business The operation of BrokerTec subjects us to regulation by the Financial Industry Regulatory Authority (FINRA) and the U.S.
Securities and Exchange Commission (SEC) as a broker-dealer and alternative trading system operator.
BrokerTec is also subject to regulation in the U.K. by the FCA, as a multilateral trading facility (MTF), in the E.U. by the AFM, as a regulated market and by the applicable regulators in Singapore and Canada.
Our EBS business is regulated by the CFTC as a registered swap execution facility (SEF) and by the FCA and AFM as a registered MTF.
It also holds various permissions, approvals and exemptions globally, including those that subject certain of its activities to CFTC, FCA, AFM, Monetary Authority of Singapore, Australian Securities and Investments Commission, Hong Kong Monetary Authority and Canadian oversight.
BrokerTec Americas is a member of the Fixed Income Clearing Corporation (FICC), through which it clears U.S.
Our BrokerTec business operated in the E.U. also connects to LCH Limited, LCH SA, BME Meff Clear and Cassa di Compensazione e Garanzia (CC&G), which act as central clearing participants in the European and U.K. gilt repo markets.
Regulation of our Market Data Business Our subsidiary, CME Group Benchmark Administration Limited, is a registered benchmark administrator, authorized and supervised by the FCA under the U.K.
CME Group Benchmark Administration Limited administers a variety of different multi-asset class data products, including CME Term SOFR.
Key Areas of Focus We actively monitor and participate in the domestic and international legislative and rulemaking processes for our industry, including providing government testimony, commenting on proposed legislation and rulemaking, and educating our regulators and policymakers on potential impacts to the marketplace.
We are also focused on impacts from the new administration and its federal regulatory appointees and any anticipated changes that may result.
Our key areas of focus in the regulatory environment are: • The implementation of a transaction tax or user fee in the U.S., U.K. or E.U., or in the States of Illinois or New Jersey, which could discourage institutions and individuals from using our markets or products or encourage them to trade in another less costly jurisdiction.
Congress, Illinois General Assembly and State of New Jersey Legislature.
This would impose a significant increase in tax rates applicable to certain market participants and could result in a decrease in their trading activity. • Certain provisions in relation to the E.U.
Regulations on Benchmarks have yet to come into effect, as the E.U. has extended transitional periods until the end of 2025, and has proposed further legislative changes to apply from 2026 onwards.
It remains possible that data, pricing and analytics provided by CME Group for use by E.U. supervised entities and use of those benchmarks may be impacted in the future. • Concerns that European legislators will prohibit or restrict exclusive licenses for benchmark indices, which might impact the profitability of several of our most popular contracts.
For example, the provision of any EUR rates benchmark (e.g.
Term €STR) will need to comply with the E.U.'s Benchmark Regulation, which allows marketing access for such benchmarks only where they meet certain requirements (e.g. they are provided from an 'equivalent' jurisdiction or they have been endorsed by an E.U. benchmark administrator). • The implementation of rules resulting in negative treatment of the liquidity profile of U.S.
Treasury securities as collateral could result in increased costs to us and our clearing firms. • The outcome of the debate regarding the regulation of cryptocurrencies, which may impact our existing offerings or o ur ability to provide future offerings. • New regulations governing treasury market structure, including potential clearing obligations or promotions of all-to-all cash models.
In December 2023, the SEC adopted a rule that becomes effective in December 2026 for certain U.S.
Treasury cash transactions and June 2027 for repo transactions mandating central clearing of U.S.
Treasury securities and repurchase agreements.

and 70 more.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

Watch CME. Know when insiders buy.

One email the day a filing lands. Free.