Futures market operator CME Group's profit jumps 31.4 percent

(Reuters) - CME Group Inc CME.O, the world's largest futures market operator, reported a 31.4 percent rise in quarterly profit as it cut costs and earned more from investments.

The company’s net income rose to $472.8 million, or $1.39 per share, in the third quarter ended Sept. 30, from $359.9 million, or 1.06 per share, a year earlier.

CME, which owns the Chicago Mercantile Exchange, earned $1.05 per share, excluding items. Analysts on average had estimated earnings of $1.04 per share, according to Thomson Reuters I/B/E/S.

Exchange operators, including CME and U.S. rival Intercontinental Exchange ICE.N, have reaped benefits in recent months as a rout in world energy markets has led to volatile trade in recent months.

CME’s energy trading volumes averaged 2.29 million contracts a day, up 16.7 percent from a year earlier, but down 1.2 percent from the prior quarter.

Investment income jumped to $36.5 million in the quarter, from $2.5 million a year ago.

CME clamped down on costs during the quarter, whittling total expenses down by 5.2 percent to $316.4 million.

The futures market operator’s total revenue fell 1 percent to $841.7 million as revenue from clearing and transaction fees slipped 1.5 percent to $704.2 million, and average daily trading volumes were flat.

Reporting By Richa Naidu and Sudarshan Varadhan in Bengaluru; Editing by Anil D’Silva and Shounak Dasgupta