CME
#Thanks, <UNK>
I want to thank you all for joining us this morning
We appreciate your interest in CME Group
We made great progress during Q3 broad-based volume growth coupled with expense discipline drove double-digit net adjusted EPS growth
We also have several new initiatives in the works
We know many of you are incredibly busy during the earnings season and also often are juggling multiple calls
We are coming up on our 15th anniversary of becoming a public company and we decided to assess our earnings delivery process
We decided to create a quarterly highlight document that we made available 90 minutes ago with the press release
This will replace the normal scripted remarks
Hopefully you had a chance to look at it
One of the notable financial metrics I would like to mention is when comparing year-to-date this year versus 2014, our revenue was up $473 million, our total expenses remained flat, and non-operating income is up $80 million
These results reflect a lot of hard work across the whole company as we focus on acquiring new global customers and being efficient
We intend to continue with this mindset
With that we would like to open up the call for your questions
Given the number of analysts who cover us, we ask that you start off with one question, so we can get to everyone
If you have another question feel free to jump back into the queue
Thank you and we look forward to your questions
Question-and-Answer Session
So I'll take the latter part of that question first, Dan, and when you look at what we've done over the last year especially taken down our investment in Europe getting out of the credit market ---+ credit business and getting out of the investment we had in Brazil just to name a few
I think that we're pretty much just where we need to be right now by taking down those investments
I'm a big believer and they don't work after while you eventually have to call the question and it wasn't where Europe wasn't completely working, it’s just we built the liquidity here in U.S
here and Chicago round the clock which made it much more efficient for the company to run
So that's really the reasons behind that
And the other investments especially Brazil, I'm a big believer if shareholders want us to invest their money, they can do it themselves, they don't need us to do it for them and as it relates to credit that was just a losing proposition for us and eventually needed to call the question
So those are a couple of the main ones that I think you're referring to and I think that's pretty much where we want to be right now
We're analyzing some smaller incentive plans things of that nature but nothing that would move the radar
As far as other M&A activity, <UNK>, I would like you to comment on
<UNK>?
<UNK> one of the things I will say it's Terry <UNK> is when you have a mandatory law such as Dodd-Frank that implements on the certain particular day people care for that
When you have what’s under the uncleared margin rules as it relates to FX it's economics that dictates the behavior of the participant, when the economics come under actually almost much more powerful than a mandatory date
So without us trying to give any timeline of when we think that’s going to have an uptick one way or another I think that you have to look at the differences and economics around these particular rules always seem to live up
Mike, I'll take ---+ I will make comment on that
I had the opportunity to meet several times the treasury along with Kim <UNK> and other people in the organization and got a chance to go through the report and got a good summary as if you've seen the report it's rather lengthy but there is a couple of things in that that I will point out that the supplemental leverage ratio that the stance of the treasury is taking in that report is very positive, we think that they're spot on with the way of looking at that
As it relates to some of the other things in the report, I think for the most part it doesn't have any adverse impact on CME Group or the businesses that we run but from that standpoint we're going to ---+ we're fine with the report
So the one thing that is in there again even though it’s that supplemental leverage ratio and Kim if you want to comment any further on that report but we ---+
Right
So that's kind of how we look at that report, Mike
So <UNK> why don't you go ahead and start off the data?
So <UNK> you want to deal with the clearing revenue question he was talking about?
Ken does that give you some color on your questions
Thanks, Ken
So Patrick we’re going to have <UNK> comment a little bit about the growth and then <UNK> talk about the products
So <UNK>?
Rich, the only thing I will say and I'll kind of follow-up with <UNK> said earlier and that is we’re going to look and continue to look and because we put ourselves in a position to analyze so many different transactions of what's going to add value to the client, I said a year ago when I took over as CEO my major focus was building the end user clients and that's what we’re continuing to do
So we freed up a lot of capital, we’re continuing to do new client acquisition and if there is a potential transaction that makes sense that will add to the bottom-line for our clients, I truly believe that's the formula that we will in return to deliver value for our shareholders
So that’s the path that I’m going down and as far as the regulation goes and who regulates that particular product that we go after it, we will take that under consideration but I will not shy away from something that I think will deliver value from the company just because of who regulates it
Well we want to thank you as I said at the outset for your participation in CME and your interest and we hope you have a good day and thank you very much
