CHICAGO MERCANTILE EXCHANGE INC.
AND SUBSIDIARIES
Financial Statements
For the Years Ended December 31, 2023 and 2022

The financial statements for Chicago Mercantile Exchange Inc. and its subsidiaries (collectively, "CME") have been
prepared in response to the Securities and Exchange Commission's Order Granting Temporary Exemptions under the
Securities Exchange Act of 1934 in Connection with the Request of Chicago Mercantile Exchange Inc. and Citadel
Investment Group, L.L.C. Related to Central Clearing of Credit Default Swaps and Request for Comments (Release
No. 34-59578; File No. S7-06-09) (the "Order"). Chicago Mercantile Exchange Inc. is a wholly-owned subsidiary of
CME Group Inc. ("CME Group"). CME Group Inc.'s Class A common stock is listed on the NASDAQ Global SelectMarket under the symbol "CME". The financial statements of CME have been prepared solely for the purposes ofcomplying with the Order and should not be used for purposes of making an investment decision in CME Group's
Class A common stock. CME Group files annual, quarterly and current reports and other information with the
Securities and Exchange Commission. Such filings are available on CME Group's Web site, above on this page andare also available on www.sec.gov.

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESFINANCIAL STATEMENTS
INDEX

Report of Independent Auditors....................................................................................................................................
Consolidated Balance Sheets at December 31, 2023 and 2022 ....................................................................................
Consolidated Statements of Income for the Years Ended December 31, 2023 and 2022 ............................................
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023 and 2022 ..................
Consolidated Statements of Shareholder's Equity for the Years Ended December 31, 2023 and 2022 .......................
Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022......................................
Notes to Consolidated Financial Statements.................................................................................................................

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Ernst & Young LLP
155 North Wacker Drive
Chicago, IL 60606-1787

Tel: +1 312 879 2000
Fax: +1 312 879 4000
www.ey.com

Report of Independent Auditors

The Board of Directors and Shareholder of Chicago Mercantile Exchange Inc.
OpinionWe have audited the consolidated financial statements of Chicago Mercantile Exchange Inc. andsubsidiaries, (“the Company”), which comprise the consolidated balance sheets as of December 31, 2023
and 2022, and the related consolidated statements of income, comprehensive income, shareholder’s equity
and cash flows for the years then ended, and the related notes (collectively referred to as the “financial
statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company at December 31, 2023 and 2022, and the results of its operations and its cash
flows for the years then ended in accordance with accounting principles generally accepted in the UnitedStates of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States ofAmerica (GAAS). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the Company and to meet our other ethical responsibilities in accordance with the relevant
ethical requirements relating to our audits. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements inaccordance with accounting principles generally accepted in the United States of America, and for thedesign, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free of material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue
as a going concern for one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore
is not a guarantee that an audit conducted in accordance with GAAS will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by areasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:A member firm of Ernst & Young Global Limited

Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.

Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.



Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of thefinancial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,that raise substantial doubt about the Company’s ability to continue as a going concern for areasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, theplanned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.

March 20, 2024

A member firm of Ernst & Young Global Limited

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in millions, except share and per share data)
December 31,
2023

AssetsCurrent Assets:
Cash and cash equivalents
Marketable securities
Accounts receivable, net of allowance of $2.4 and $2.1
Other current assets
Due from affiliates
Performance bonds and guaranty fund contributions
Total current assets
Property, net
Goodwill$

Other assets

1,021.3
91.2
219.0
100.4
172.3
90,192.2
91,796.4
332.2
17.7

2022

$

213.9

Total Assets
Liabilities and Shareholder's Equity
Current Liabilities:
Accounts payable
Other current liabilities
Due to affiliates
Performance bonds and guaranty fund contributions
Total current liabilities
Other liabilities

941.6
75.5
190.4
136.2
204.7
135,248.9
136,797.3
363.5
17.7
213.9

$

92,360.2$

137,392.4

$

70.3
285.4
164.8
90,192.2
90,712.7
333.5

$

103.8
269.8
157.6
135,248.9
135,780.1
344.0

Total Liabilities

91,046.2

136,124.1

Shareholder's Equity:
Common stock, $0.01 par value, 1,000 shares authorized, 100 shares issued and outstanding
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)—
1,200.4
135.9(22.3)—
1,132.2
158.0(21.9)

Total Shareholder's Equity

1,314.0

1,268.3

Total Liabilities and Shareholder's Equity$

See accompanying notes to consolidated financial statements.

4

92,360.2$

137,392.4

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(in millions)Year Ended December 31,
2023

Revenues
Clearing and transaction fees
Fees from affiliates
Market data and information services
Other

$

Total Revenues

1,878.1
832.2
235.0
284.1

2022

$

1,730.7
670.6
206.2
229.1

3,229.4

2,836.6

ExpensesCompensation and benefits
Technology support services

567.4
191.6

516.7
158.2

Professional fees and outside services
Depreciation and amortization
Licensing and other fee agreements
Other

98.6
102.0
305.9
524.1

92.8
107.5
300.3
462.0

Total Expenses

1,789.6

1,637.5

Operating Income

1,439.8

1,199.1

Non-Operating Income (Expense)
Investment income
Interest and other borrowing costs
Other
Total Non-Operating Income (Expense)

5,138.2(22.2)(4,701.6)
414.4

2,170.2(23.6)(1,859.1)
287.5

Income before Income Taxes
Income tax provision

1,854.2
433.5

1,486.6
362.1

Net Income$

See accompanying notes to consolidated financial statements.

5

1,420.7$

1,124.5

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(in millions)Year Ended December 31,
2023

Net income
Other comprehensive income, net of tax:
Defined benefit plan:
Net change in defined benefit plan arising during the period
Amortization of net actuarial losses and prior service costs included in pension expense
Income tax benefit (expense)
Defined benefit plan, net
Other comprehensive income (loss), net of tax
Comprehensive income
See accompanying notes to consolidated financial statements.

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2022

$

1,420.7$

1,124.5

$

(0.7)
0.1
0.2
(0.4)
(0.4)
1,420.3 $

14.9
1.2
(4.1)
12.0
12.0
1,136.5

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY(in millions, except shares)
Common Stock(shares)

Balance at December 31, 2021
Net income
Other comprehensive income (loss)
Cash dividends to CME Group Inc.
Stock-based compensation
Balance at December 31, 2022
Net income
Other comprehensive income (loss)
Distribution of subsidiary assets to anaffiliate
Cash dividends to CME Group Inc.
Stock-based compensation
Balance at December 31, 2023

Common Stockand Additional
Paid-in Capital

100 $1,060.4

Retained
Earnings$

179.5
1,124.5

Accumulated
Other
Comprehensive
Income (Loss)$(33.9) $12.0(1,146.0)
71.8
1,132.2100

158.0
1,420.7(21.9)(0.4)

68.2
1,200.4

100 $See accompanying notes to consolidated financial statements.

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$

Total
Shareholder'sEquity1,206.0
1,124.5
12.0(1,146.0)
71.8
1,268.3
1,420.7
(0.4)

(4.8)

(4.8)

(1,438.0)(1,438.0)
68.2
1,314.0

135.9$(22.3) $CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in millions)Year Ended December 31,
2023
2022

Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation
Depreciation and amortization
Deferred income taxes
Change in assets and liabilities:
Net due to or from affiliates
Accounts receivable
Other current assets
Other assets
Accounts payable
Other current liabilities
Other liabilities
Other
Net Cash Provided by Operating Activities$

Cash Flows from Investing Activities
Purchases of property, net
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Cash dividends to CME Group Inc.
Receipts from bilateral loan agreements with CME Group Inc.
Payments for bilateral loan agreements with CME Group Inc.
Change in performance bond and guaranty fund contributions
Other
Net Cash Used in Financing Activities
Net change in cash, cash equivalents, restricted cash and restricted cash equivalents
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of
PeriodReconciliation of cash, cash equivalents, restricted cash and restricted cash
equivalents:
Cash and cash equivalents
Restricted cash and restricted cash equivalents (performance bonds and guaranty fundcontributions)
Total
Supplemental Disclosure of Cash Flow Information
Income taxes paid
See accompanying notes to consolidated financial statements.

8

1,420.7$

1,124.5

68.2
102.0(31.6)

71.8
107.5(23.2)

30.0(28.8)
35.8
30.3(33.5)
17.5(11.6)
2.7
1,601.7

130.0(18.1)
5.4
31.2
71.6
40.7
(20.1)
2.0
1,523.3(66.8)(66.8)(83.2)(83.2)(1,438.0)
489.0(489.0)(45,056.7)(17.2)(46,511.9)(1,146.0)
379.5(320.0)(22,700.5)(17.1)(23,804.1)(44,977.0)
136,190.5(22,364.0)
158,554.5$

91,213.5$

136,190.5$

1,021.3

$

941.6

$

90,192.2
91,213.5$

135,248.9
136,190.5

$

76.9

$

114.4

CHICAGO MERCANTILE EXCHANGE INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND BUSINESS
Chicago Mercantile Exchange Inc. (the exchange or CME), a wholly-owned subsidiary of CME Group Inc. (CME Group), is a
designated contract market (DCM) for the trading of futures and options on futures contracts. CME offers a wide range of
products including those based on interest rates, equities, foreign exchange and agricultural commodities. Trades are executed
through electronic trading platforms, open outcry and privately negotiated transactions. CME is also a derivatives clearingorganization (DCO). CME offers clearing, settlement, and guarantees for all products cleared through the company and its
affiliates. CME also provides clearing and other services to non-affiliated third-parties. CME serves as a swap execution
facility, which is a regulated platform for swap trading, and serves as a swap data repository, which provides public data on
swap transactions and stores confidential swap data for regulatory purposes.
Consolidated CME also includes NEX Services North America (NEX Services), which a provides shared technology and otheradministrative services to affiliates of CME Group. CME and its subsidiaries are referred to collectively as "the company" or"CME" in the notes to the consolidated financial statements.
2. SIGNIFICANT ACCOUNTING POLICIESBasis of Presentation. The accompanying consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States and include the accounts of the company and its majority-owned subsidiaries.
All intercompany transactions and balances have been eliminated.
Use of Estimates. The preparation of consolidated financial statements requires management to make estimates andassumptions that affect the reported amounts and the disclosure of contingent amounts on the consolidated financial statements
and accompanying notes. Estimates are based on historical experience, where applicable, and assumptions management
believes are reasonable under the circumstances. Due to the inherent uncertainty involved with estimates, actual results may
differCash and Cash Equivalents. Cash and cash equivalents consist of cash and highly liquid investments with a maturity of threemonths or less at the time of purchase.
Financial Investments. The company maintains short-term marketable securities, classified as trading securities. Trading
securities held in connection with non-qualified deferred compensation plans are recorded at fair value, with net realized andunrealized gains and losses and dividend income reported as investment income.
The company reviews its investments to determine whether a decline in fair value below the cost basis is other-than-temporary.
If events and circumstances indicate that a decline in the value of the assets has occurred and is deemed to represent indicatorsof impairment, the carrying value of the investments is reduced to its fair value and a corresponding impairment is charged toearnings.
Fair Value of Financial Instruments. The company uses a three-level classification hierarchy of fair value measurements that
establishes the quality of inputs used to measure fair value. The fair value of a financial instrument is the amount that would bereceived to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date. The fair value of financial instruments is determined using various techniques that involve some level of estimation andjudgment, the degree of which is dependent on the price transparency and the complexity of the instruments.
The company uses a three-level classification hierarchy of fair value measurements for disclosure purposes:•

Level 1 inputs, which are considered the most reliable evidence of fair value, consist of quoted prices (unadjusted) for
identical assets or liabilities in active markets.

•

Level 2 inputs consist of observable market data, other than level 1 inputs, such as quoted prices for similar assets andliabilities in active markets or inputs other than quoted prices that are directly observable.

•

Level 3 inputs consist of unobservable inputs which are derived and cannot be corroborated by market data or otherentity-specific inputs.

Accounts Receivable. Accounts receivable are comprised of trade receivables and unbilled revenue. All accounts receivable
are stated at net realizable value. Exposure to losses on receivables for clearing and transaction fees and other amounts owed byclearing and trading firms is dependent on each firm's financial condition. With respect to clearing firms, our credit loss
exposure is mitigated by the memberships that collateralize fees owed to the company. The company retains the right toliquidate exchange memberships to satisfy an outstanding receivable. The allowance for doubtful accounts is calculated basedon management's assessment of future expected losses over the life of the receivable, historical trends and the current economic
environment within which we operate.
9Performance Bonds and Guaranty Fund Contributions. Performance bonds and guaranty fund contributions held forclearing firms may be in the form of cash, securities or other non-cash deposits.
Performance bonds and guaranty fund contributions received in the form of cash held by CME may be invested in U.S.
government securities, U.S. government agency securities and certain foreign government securities acquired through and heldby a bank or broker-dealer subsidiary of a bank, a cash account at the Federal Reserve Bank of Chicago, investments in highly
rated government securities, money market funds or through CME's Interest Earning Facility (IEF) program. Any interest
earned on these investments accrues to CME and is included in investment income on the consolidated statements of income.
CME may distribute any interest earned on its investments to the clearing firms at its discretion. Because CME has control of
the cash collateral and the benefits and market risks of ownership accrue to CME, cash performance bonds and guaranty fundcontributions are reflected on the consolidated balance sheets. The cash performance bonds and guaranty fund contributions are
considered restricted cash as the cash deposits cannot be used for the company's operations or to satisfy any operational
liabilities.
Securities and other non-cash deposits may include U.S. Treasury securities, U.S. government agency securities, Eurobonds,
corporate bonds, other foreign government securities and gold bullion. Securities and other non-cash deposits are held in
safekeeping by a custodian bank. Interest and gains or losses on securities deposited to satisfy performance bond and guaranty
fund requirements accrue to the clearing firm. Because the benefits and risks of ownership accrue to the clearing firm, non-cash
performance bonds and guaranty fund contributions are not reflected on the consolidated balance sheets.
Property. Property is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization arecalculated using the straight-line method, generally over two to nineteen years. Property and equipment are depreciated overtheir estimated useful lives. Leasehold improvements are amortized over the shorter of the remaining term of the respective
lease to which they relate or the remaining useful life of the leasehold improvement. Land is reported at cost. Internal andexternal costs incurred in developing, obtaining, or implementing computer software for internal use which meet therequirements for capitalization are amortized on a straight-line basis over the estimated useful life of the software, generally two
to four years, but up to eight years for certain trading and clearing applications, depending upon expected useful lives.
Leases. The company accounts for our leases of office space as operating leases. Landlord allowances are recorded as a direct
reduction to the capitalized lease asset, which is reported in other assets and amortized to rent expense over the term of thelease. Both lease and direct non-lease costs are accounted for as a single lease component for purposes of capitalization on the
consolidated balance sheets.The associated lease liability represents the present value of lease payments remaining in the leaseterm and is recorded within current and other liabilities depending upon the balance sheet classification of the payment
obligations as short-term or long-term. For sale leaseback transactions, the company evaluates the sale and the leasearrangement based on the company's conclusion as to whether control of the underlying asset has been transferred andrecognizes the sale leaseback as either a sale transaction or under the financing method, which requires the asset to remain on
the consolidated balance sheets throughout the term of the lease and the proceeds to be recognized as a financing obligation. A
portion of the lease payments is recognized as a reduction of the financing obligation and a portion is recognized as interest
expense based on an imputed interest rate.
Goodwill and Other Intangible Assets. Goodwill represents the excess of the purchase price over the fair value of the net
assets acquired in a business combination. The company reviews goodwill for impairment at least quarterly and whenever
events or circumstances indicate that the carrying value may not be recoverable. The company may test goodwill quantitatively
for impairment by comparing the carrying value of a reporting unit to its estimated fair value. Estimating the fair value of areporting unit involves significant judgments inherent in the analysis, including estimating the amount and timing of future cash
flows and the selection of appropriate discount rates and long-term growth rate assumptions. Changes in these estimates andassumptions could materially affect the determination of fair value for the reporting unit. If the carrying amount exceeds fairvalue, an impairment loss is recorded. In certain circumstances, goodwill may be reviewed qualitatively for indications of
impairment without utilizing valuation techniques to estimate fair value.
Business Combinations. The company accounts for business combinations using the acquisition method. The method requires
the acquirer to recognize the assets acquired, liabilities assumed, and any non-controlling interest in the acquiree at theacquisition date, measured at their fair values as of that date. The company may use independent valuation services to assist in
determining the estimated fair values.
Employee Benefit Plans. The company recognizes the funded status of defined benefit postretirement plans on its consolidatedbalance sheets. Changes in that funded status are recognized in the year of change in other comprehensive income (loss). Plan
assets and obligations are measured at year end. The company recognizes future changes in actuarial gains and losses and priorservice costs in the year in which the changes occur through accumulated other comprehensive income (loss).
Foreign Currency Accounting. Foreign denominated assets and liabilities are re-measured into the functional currency using
period-end exchange rates. Gains and losses from foreign currency transactions are included in other expense in theaccompanying consolidated statements of income.
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Revenue Recognition. Revenue recognition policies for specific sources of revenue are discussed below:
Clearing and Transaction Fees. Clearing and transaction fees include per-contract charges for trade execution, clearing,
trading on the company's electronic trading platforms, portfolio reconciliation and compression services, risk mitigation,and other fees. Fees are charged at various rates based on the product traded, the method of trade, the exchange trading
privileges of the customer making the trade and the type of contract. The majority of our clearing and transaction fees arerecognized as revenue upon successful execution of the trade. Therefore, unfilled or canceled buy and sell orders have no
impact on revenue. On occasion, the customer's exchange trading privileges may not be properly entered by the clearing
firm and incorrect fees are charged for the transactions. When this information is corrected within the time period allowedby the company, a fee adjustment is provided to the clearing firm. A reserve is established for estimated fee adjustments
to reflect corrections to customer exchange trading privileges. The reserve is based on the historical pattern ofadjustments processed as well as management's estimate of future adjustment activity. The company believes the reserveis adequate to cover estimated adjustments as of December 31, 2023 and 2022.
Market Data and Information Services. Market data and information services represent revenue earned for the
dissemination of market information. Revenues are accrued each month based on the number of devices reported by
vendors or over a straight line basis in accordance with the market data subscription contract term. The company
conducts periodic examinations of the number of devices reported and assesses additional fees as necessary. On occasion,customers will pay for services in a lump sum payment; however, revenue is recognized as services are provided.
Other Revenues. Other revenues include access and communication fees, fees for collateral management, equity
membership subscription fees and fees for trade order routing through agreements from various strategic relationships aswell as other services to customers. Revenue is recognized as services are provided.
Marketing Costs. Marketing costs are incurred for the production and communication of advertising as well as other marketing
activities. These costs are expensed when incurred, except for costs related to the production of broadcast advertising, which areexpensed when the first broadcast occurs.
Income Taxes. Deferred income taxes arise from temporary differences between the tax basis and book basis of assets andliabilities. A valuation allowance is recognized if it is anticipated that some or all of a deferred tax asset may not be realized.
The company accounts for uncertainty in income taxes recognized in its consolidated financial statements by using a morelikely-than-not recognition threshold based on the technical merits of the tax position taken or expected to be taken. The
company recognizes interest and penalties related to uncertain tax positions in income tax expense.
Newly Adopted Accounting Policies. The company did not adopt new accounting policies in 2023. The company also does
not currently expect any pending accounting pronouncements to have a material impact on the consolidated financial
statements.
3. TRANSACTIONS WITH AFFILIATED COMPANIESThe company transacts business in the normal course of operations with affiliates including its parent and entities undercommon ownership control. Affiliates include, but are not limited to, CME Group, Board of Trade of the City of Chicago, Inc.
(CBOT), New York Mercantile Exchange, Inc. (NYMEX) and Commodity Exchange, Inc. (COMEX).
Fees from affiliates. CME receives fees from affiliates for shared operational and administrative services including, but notlimited to, clearing and transaction processing; data distribution; network and infrastructure connectivity and maintenance;
marketing, and staffing resources. In 2023 and 2022, CME recognized fees from affiliates of $832.2 million and $670.6 million,
respectively.
Fees to affiliates. CME pays a fee to various affiliates for marketing, software development and market data services. In 2023
and 2022, CME recognized fees to affiliates of $357.1 million and $296.4 million, respectively. These expenses were included
in other expenses in the consolidated statements of income.
Allocation of stock-based compensation expense. CME employees receive stock option, restricted stock awards andperformance shares under CME Group's stock-based incentive plans. Stock-based compensation costs related to stock-based
incentives received by CME's employees are recorded as compensation expense with an offset to additional paid-in capital inshareholder's equity.
Allocation of income taxes. CME is included in the consolidated federal and state income tax returns of its parent, CME
Group. Income tax expense is allocated to members of the consolidated group based on a separate entity basis and presented ona separate entity basis as well.
Amounts due from and to affiliates. Amounts due from and to affiliates represent unsecured receivables and payables forshared services and income taxes.

11

At December 31, 2023, amounts due from (to) affiliates consisted of the following:(in millions)Shared Services

CME Group
CBOT
NYMEX
CME Operations
Limited
Other affiliates
Total

$

$

7.1
69.7
56.8

Income Taxes

Total

$

(99.3) $——(92.2)
69.7
56.8(36.5)
9.7
106.8 $——
(99.3) $(36.5)
9.7
7.5

Due from Affiliates

Due to Affiliates

$

$

$

—
69.7
56.8
—
45.8
172.3

$

Total

(92.2) $——(92.2)
69.7
56.8(36.5)(36.1)(164.8) $(36.5)
9.7
7.5

At December 31, 2022, amounts due from (to) affiliates consisted of the following:(in millions)Shared Services

CME Group
CBOT
NYMEX
CME Operations
Limited
Other affiliates
Total

$

$

5.8
73.7
79.1

Income Taxes

Total

$

(79.3) $——(73.5)
73.7
79.1(55.7)
23.5
126.4 $——
(79.3) $(55.7)
23.5
47.1

Due from Affiliates

Due to Affiliates

$

$

$

—
73.7
79.1
—
51.9
204.7

$

Total

(73.5) $——(73.5)
73.7
79.1(55.7)(28.4)(157.6) $(55.7)
23.5
47.1

Intercompany debt. CME and CME Group have entered into an intercompany bilateral loan agreement in which each entity
may make loans to the other entity. The agreement will expire in December 2024. The outstanding loan receivable or payableamount cannot exceed $750.0 million and can be voluntarily prepaid. Interest accrued based on the prime rate, which was 7.5%
to 8% during the period in 2023 that the loan was outstanding and is payable quarterly or in connection with a voluntary
prepayment. At December 31, 2023 and 2022, there were no outstanding loan receivables under this agreement.
NEX Services and CME Group maintained an intercompany bilateral loan agreement in which each entity may make loans to
the other entity. The agreement expired in November 2022. The outstanding loan receivable or payable amount cannot exceed$75.0 million and can be voluntarily prepaid. Interest accrued based on the prime rate, which was 3.25% to 6.25% during 2022
and was payable quarterly or in connection with a voluntary prepayment. At December 31, 2022 there was no outstanding loan
receivable under this agreement.
CME also maintains an intercompany committed line of credit agreement with CME Group. CME may use the proceeds for its
general operating expenses and those of its subsidiaries. The line of credit provides for borrowings of up to $500.0 million. The
agreement will expire in December 2024. The company has the option to request an increase in the line of credit from $500.0
million up to $600.0 million. During 2023 and 2022, the company did not borrow against this facility.
4. REVENUE RECOGNITION
Revenue from Contracts with Customers. The majority of revenue consists of clearing and transaction fees:
Clearing and transaction fees. Clearing and transaction fees include electronic trading fees and brokerage commissions,surcharges for privately-negotiated transactions, portfolio reconciliation and compression services, risk mitigation and othervolume-related charges for trade contracts. Clearing and transaction fees are assessed upfront at the time of trade execution. As
such, the company recognizes the majority of the fee revenue upon successful execution of the trade. The minimal remaining
portion of the fee revenue related to settlement activities performed after trade execution is recognized over the short-term
period that the contract is outstanding, based on management’s estimates of the average contract lifecycle. These estimates are
based on various assumptions to approximate the amount of fee revenue to be attributed to services performed through contract
settlement, expiration, or termination. For cleared trades, these assumptions include the average number of days that a contract
remains in open interest, contract turnover, average revenue per day, and revenue remaining in open interest at the end of eachperiod.
The nature of contracts gives rise to several types of variable consideration, including volume-based pricing tiers, customer
incentives associated with market maker programs and other fee discounts. The company includes fee discounts and incentives
in the estimated transaction price when there is a basis to reasonably estimate the amount of the fee reduction. These estimatesare based on historical experience, anticipated performance, and best judgment at the time. Because of the company's certainty
in estimating these amounts, they are included in the transaction price of contracts.

12Market data and information services. Market data and information services represent revenue from the dissemination ofmarket data to subscribers, distributors, and other third-party licensees of market data. Pricing for market data is primarily basedon the number of reportable devices used as well as the number of subscribers enrolled under the arrangement. Fees for these
services are generally billed monthly. Market data services are satisfied over time and revenue is recognized on a monthly basis
as the customers receive and consume the benefit of the market data services. However, the company also maintains certain
annual license arrangements with one-time upfront fees. The fees for annual licenses are initially recorded as a contract liability
and recognized as revenue monthly over the term of the annual period.
Other. Other revenues include certain access and communication fees, fees for collateral management, equity membershipsubscription fees, and fees for trade order routing through agreements from various strategic relationships. Access andcommunication fees are charged to customers that utilize various telecommunications networks and communications services.
Fees for these services are generally billed monthly and the associated fee revenue is recognized as billed. Collateralmanagement fees are charged to clearing firms that have collateral on deposit with the clearing house to meet their minimum
performance bond and guaranty fund obligations on the exchange. These fees are calculated based on daily collateral balances
and are billed monthly. This fee revenue is recognized monthly as billed as the customers receive and consume the benefits ofthe services. The company also has an equity membership program which provides equity members the option to substitute amonthly subscription fee for their existing requirement to hold CME Group Class A common stock. Choosing to pay this fee inlieu of holding Class A shares is entirely voluntary and the client's choice. Fee revenue under this program is earned monthly as
billed over the contractual term. Pricing for strategic relationships may be driven by customer levels and activity. There are fee
arrangements which provide for monthly as well as quarterly payments in arrears. Revenue is recognized monthly for strategic
relationship arrangements as the customers receive and consume the benefits of the services.
The following table represents a disaggregation of revenue from contracts with customers by timing for the years ended
December 31, 2023 and 2022:(in millions)

Timing of Revenue Recognition
Services transferred at a point in time
Services transferred over time
One-time charges and miscellaneous revenues
Total revenues

2023

2022

$ 1,837.1
1,383.9
8.4$ 3,229.4$ 1,697.3
1,124.2
15.1$ 2,836.6

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, and customer advancesand deposits (contract liabilities) on the consolidated balance sheets. Certain fees for transactions, annual licenses, and otherrevenue arrangements are billed upfront before revenue is recognized, which results in the recognition of contract liabilities.
These liabilities are recognized on the consolidated balance sheets on a contract-by-contract basis upon commencement ofservices under the customer contract. These upfront customer payments are recognized as revenue over time as the obligations
under the contracts are satisfied. Changes in the contract liability balances during 2023 were not materially impacted by anyother factors. The balance of contract liabilities was $9.5 million and $8.1 million as of December 31, 2023 and 2022,
respectively.
5. PERFORMANCE BONDS AND GUARANTY FUND CONTRIBUTIONS
The clearing house clears and guarantees the settlement of contracts traded in the futures and options and interest rate swap
markets. In its guarantor role, the clearing house has precisely equal and offsetting claims to and from clearing firms on
opposite sides of each contract, standing as an intermediary on every contract cleared. In the U.S., clearing firm funds are held
according to Commodity and Futures Trading Commission (CFTC) regulatory account segregation standards. To the extent thatfunds are not otherwise available to satisfy an obligation under the applicable contract, the clearing house bears counterparty
credit risk in the event that future market movements create conditions that could lead to clearing firms failing to meet their
obligations to the clearing house. The clearing house reduces the exposure through risk management programs that include
initial and ongoing financial standards for designation as a clearing firm, performance bond requirements, daily mark-tomarket, mandatory guaranty fund contributions and intra-day monitoring.
Each clearing firm is required to deposit and maintain balances in the form of cash, U.S. government securities, certain foreign
government securities, bank letters of credit or other approved collateral to satisfy performance bond and guaranty fundrequirements. All non-cash deposits and certain cash deposits with foreign currency exposure are marked-to-market and haircut
on a daily basis. Securities deposited by the clearing firms are not reflected on the consolidated financial statements and theclearing house does not earn any interest on these deposits. These balances may fluctuate significantly over time due toinvestment choices available to clearing firms and changes in the amount of contributions required.

13

The clearing house marks-to-market open positions at least once a day (twice a day for futures and options contracts), andrequires payment from clearing firms whose positions have lost value and makes payments to clearing firms whose positions
have gained value. The clearing house has the capability to mark-to-market more frequently as market conditions warrant.
Under the extremely unlikely scenario of simultaneous default by every clearing firm who has open positions with unrealized
losses, the maximum exposure at the time of default related to positions other than interest rate swap contracts would be one
half day of changes in fair value of all open positions, before considering the clearing house's ability to access defaulting
clearing firms' collateral deposits. For cleared interest rate swap contracts, the maximum exposure at the time of default related
to the clearing house's guarantee would be one full day of changes in fair value of all open positions, before considering theclearing house's ability to access defaulting clearing firms' collateral. During 2023, the clearing house transferred an average ofapproximately $5.9 billion a day through the clearing system for settlement from clearing firms whose positions had lost value
to clearing firms whose positions had gained value. The clearing house reduces its exposure through maintenance performancebond requirements and guaranty fund contributions. For futures and options products, the clearing firms' collateral requirements
are sized to cover at least one day of anticipated price movements. For cleared swap products, the clearing firms' collateralrequirements are sized to cover at least five days of anticipated price movements. Management has assessed the fair value of thecompany's settlement guarantee liability by taking the following factors into consideration: the design and operations of theclearing risk management process, the financial safeguard packages in place, historical evidence of default by a clearing
member and the estimated probability of potential payouts by the clearing house. Based on the assessment performed,
management estimates the guarantee liability to be nominal and therefore has not recorded any liability at December 31, 2023.
CME has been designated as a systemically important financial market utility by the Financial Stability Oversight Council andis authorized to maintain cash accounts at the Federal Reserve Bank of Chicago. At December 31, 2023 and 2022, the clearing
house maintained $79.3 billion and $124.9 billion, respectively, within the cash accounts at the Federal Reserve Bank ofChicago. The cash deposited at the Federal Reserve Bank of Chicago is included within performance bonds and guaranty fundcontributions on the consolidated balance sheets.
CME and The Options Clearing Corporation (OCC) have a perpetual cross-margin arrangement, whereby a clearing firm may
maintain a cross-margin account in which a clearing firm's positions in certain equity index futures and options are combinedwith certain positions cleared by OCC for purposes of calculating performance bond requirements. The performance bonddeposits are held jointly by CME and OCC. Cross-margin cash, securities and letters of credit jointly held with OCC under the
cross-margin agreement are reflected at 50% of the total, or CME's proportionate share per that agreement. If a participating
firm defaults, the gain or loss on the liquidation of the firm's open position and the proceeds from the liquidation of the crossmargin account would be allocated equally between CME and OCC. In the event of a remaining loss, CME would first apply
assets of the defaulting clearing firm to satisfy its payment obligation. These assets include the defaulting firm's guaranty fundcontributions, performance bonds and any other available assets, such as assets required for clearing membership and any
associated trading rights. Thereafter, if the payment default remains unsatisfied, the clearing house would use its corporate
contributions designated for the respective financial safeguard package. The clearing house would then use guaranty fundcontributions of other clearing firms within the respective financial safeguard package and funds collected through anassessment against solvent clearing firms within the respective financial safeguard package to satisfy the deficit.
In addition, CME has a cross-margin arrangement with Fixed Income Clearing Corporation (FICC) whereby certain of theclearing firms' offsetting positions with CME and FICC are subject to reduced performance bond requirements. Clearing firms
maintain separate performance bond deposits with each clearing house, but based on the net offsetting positions between CME
and FICC, each clearing house may reduce that firm's performance bond requirements. If a participating firm defaults, the gainor loss on the liquidation of the firm’s open positions and the proceeds from the liquidation of the cross margin account would
be allocated between CME and FICC pursuant to a publicly-available cross-margining agreement. In the event of a remaining
loss, CME would first apply assets of the defaulting clearing firm to satisfy its payment obligation. These assets include thedefaulting firm's guaranty fund contributions, performance bonds and any other available assets, such as assets required forclearing membership and any associated trading rights. Thereafter, if the payment default remains unsatisfied, the clearing
house would use its corporate contributions designated for the respective financial safeguard package. The clearing house
would then use guaranty fund contributions of other clearing firms within the respective financial safeguard package and funds
collected through an assessment against solvent clearing firms within the respective financial safeguard package to satisfy the
deficit.
Each clearing firm for futures and options is required to deposit and maintain specified guaranty fund contributions in the formof cash or U.S. Treasury securities (base guaranty fund). In the event that performance bonds, guaranty fund contributions andother assets required to support clearing membership of a defaulting clearing firm are inadequate to fulfill that clearing firm's
outstanding financial obligation, the base guaranty fund for contracts other than interest rate swaps is available to coverpotential losses after first utilizing $100.0 million of corporate contributions designated by CME to be used in the event of a
default of a clearing firm for the base guaranty fund.

14

The clearing house maintains a separate guaranty fund to support the clearing firms that clear interest rate swap products(cleared interest rate swaps contract guaranty fund). The funds for interest rate swaps are independent of the base guaranty fundand are isolated to clearing firms for products in the respective asset class. Each clearing firm for cleared interest rate swaps isrequired to deposit and maintain specified guaranty fund contributions in the form of cash or U.S. Treasury securities. In theevent that performance bonds, guaranty fund contributions and other assets required to support clearing membership of a
defaulting clearing firm for cleared interest rate swap contracts are inadequate to fulfill that clearing firm's outstanding financial
obligation, the interest rate swaps contracts guaranty fund is available to cover potential losses after first utilizing $150.0
million of corporate contributions designated by CME to be used in the event of a default of a cleared interest rate swap
clearing firm.
CME maintains a 364-day multi-currency line of credit with a consortium of domestic and international banks to be used incertain situations by the clearing house. CME may use the proceeds to provide temporary liquidity in the unlikely event of aclearing firm default, in the event of a liquidity constraint or default by a depositary (custodian of the collateral), or in the eventof a temporary disruption with the domestic payments system that would delay payment of settlement variation between CME
and its clearing firms. Clearing firm guaranty fund contributions received in the form of cash or U.S. Treasury securities as wellas the performance bond assets of a defaulting firm can be used to collateralize the facility. The line of credit provides forborrowings of up to $7.0 billion. At December 31, 2023, guaranty fund contributions available to collateralize the facility were
$8.6 billion. CME has the option to request an increase in the line from $7.0 billion to $10.0 billion, subject to the approval ofparticipating banks. In addition to the 364-day fully secured, committed multi-currency line of credit, the company also has theoption to use the $2.3 billion multi-currency revolving senior credit facility to provide liquidity for the clearing house in theunlikely event of default.
The clearing house is required under the Commodity Exchange Act in the U.S. to segregate cash and securities deposited byclearing firms from its clearing member customers. In addition, the clearing house requires segregation of all funds depositedby its clearing firms from operating funds.
Cash and non-cash deposits held as performance bonds and guaranty fund contributions at fair value at December 31 were as
follows:
2023(in millions)

Performance bonds
Guaranty fund contributions
Cross-margin arrangements
Performance bond collateral for delivery (2)
Total

Cash

$

87,285.5
2,379.6
183.1
344.0
90,192.2$

2022
Non-Cash
Deposits
andIEF Funds (1)$$180,866.3
6,849.6
1,374.5
2.1
189,092.5

Non-Cash
Deposits
andIEF Funds (1)

Cash

$

$

132,653.7
2,450.3
142.6
2.3
135,248.9$$

94,127.2
5,026.0
561.1
2.1
99,716.4(1) IEF funds include customer-directed investments in IEF funds that are not included on the consolidated balance sheets.
(2) Other includes collateral for delivery and accrued interest earned on collateral reinvestment due to the clearing firms.

Cross-margin arrangements include collateral for the cross-margin accounts with OCC and FICC.
Cash performance bonds may include intraday settlement, if any, that is owed to the clearing firms and paid the following
business day. The balance of intraday settlements was $237.5 million and $436.7 million at December 31, 2023 and 2022,
respectively. Intraday settlements may be invested on an overnight basis and are offset by an equal liability owed to clearing
firms.
In addition to cash, securities and other non-cash deposits, irrevocable letters of credit may be used as performance bonddeposits for clearing firms. At December 31, 2023 and 2022 these letters of credit, which are not included in the accompanying
consolidated balance sheets, were as follows:(in millions)

2023

$

Performance bonds
Performance bond collateral for delivery
Total Letters of Credit$

3,916.7
4,631.4
8,548.1

2022$$

4,674.3
3,445.0
8,119.3

All cash, securities and letters of credit posted as performance bonds are only available to meet the financial obligations of thatclearing firm to the clearing house.

156. PROPERTY
A summary of the property accounts at December 31 is presented below:(in millions)

2023

Building and building improvements
Leasehold improvements
Furniture, fixtures and equipment
Software and software development costs
Total property
Less accumulated depreciation and amortization
Property, net

$

2022

130.7
52.0
307.8
568.0
1,058.5(726.3)332.2 $

Estimated Useful Life

131.9
132.5
411.3
603.8
1,279.5(916.0)363.5

1 - 10 years
3 - 19 years
2 - 7 years
2 - 4 years

7. DEBT
CME maintains a 364-day multi-currency revolving secured credit facility with a consortium of domestic and internationalbanks to be used in certain situations by CME Clearing. The facility provides for borrowings of up to $7.0 billion. CME may
use the proceeds to provide temporary liquidity in the unlikely event a clearing firm fails to promptly discharge an obligation to
CME Clearing, in the event of a liquidity constraint or default by a depositary (custodian for our collateral), in the event of atemporary disruption with the domestic payments system that would delay payment of settlement variation between us and ourclearing firms, or in other cases as provided by the CME rulebook. Clearing firm guaranty fund contributions received in theform of cash or U.S. Treasury securities as well as the performance bond assets (pursuant to the CME rulebook) can be used tocollateralize the facility. At December 31, 2023, guaranty funds available to collateralize the facility totaled $8.6 billion. We
have the option to request an increase in the line from $7.0 billion to $10.0 billion. Throughout 2023 and 2022, the company did
not borrow any funds against this facility. However, in order to ensure that the facility would operate as intended, CME
periodically draws down nominal amounts of funds against the line of credit and immediately repays the amounts borrowed.
The 364-day multi-currency line of credit contains a requirement that CME remain in compliance with a consolidated tangible
net worth test, defined as CME consolidated shareholder's equity less intangible assets (as defined in the line of credit
agreement) of not less than $800.0 million. At December 31, 2023, CME is in compliance with the covenant requirement. In
addition to the 364-day multi-currency line of credit, CME also has the option to use CME Group's $2.3 billion multi-currency
revolving senior credit facility to provide liquidity for clearing operations in the unlikely event of default in certain
circumstances. The proceeds from this facility can be used for general corporate purposes, which includes providing liquidity
for our clearing house in certain circumstances at CME Group's discretion.
8. INCOME TAXESThe income tax provision consisted of the following for the years ended December 31. The company is subject to regulation
under a wide variety of federal, state and foreign tax laws and regulations.
(in millions)

2023

Current:
FederalState
Foreign
Total$

Deferred:FederalState
Total
Total Income Tax Provision

$

16

360.6
102.6
1.9
465.1

2022

$

297.6
86.6
1.1
385.3

(24.7)(6.9)(31.6)
433.5 $

(17.5)(5.7)(23.2)
362.1

Reconciliation of the U.S. federal income tax rate (statutory tax rate) to the effective tax rate is as follows:
2023

Statutory tax rate
State taxes, net of federal benefit
Foreign-derived intangible income deduction
Other, net
Effective Tax Rate

2022

21.0 %
4.1
(1.5)
(0.3)
23.3 %

21.0 %
4.3
(1.4)
0.5
24.4 %In 2023 and 2022, the effective tax rates were higher than the statutory tax rate due to the impact of state taxes, partially offset
by the foreign-derived intangible income (FDII) deduction.
At December 31, net deferred income tax assets (liabilities) consisted of the following:(in millions)2023

Deferred Income Tax Assets:
Net operating losses
Accrued expenses, compensation, leases and other$

Subtotal
Valuation allowance
Total deferred income tax assets
Deferred Income Tax Liabilities:
Property
Other
Total deferred income tax liabilities
Net Deferred Income Tax Assets

$

—
114.1

2022

$

1.3
112.2

114.1
—
114.1

113.5
(0.4)
113.1

(20.2)(38.6)(58.8)
55.3 $(48.1)(42.2)(90.3)
22.8

At December 31, 2023 and 2022, net non-current deferred income tax assets were included in other assets in the consolidatedbalance sheets.
A valuation allowance is recorded when it is more-likely-than-not that some portion or all of the deferred income tax assets may
not be realized. The ultimate realization of the deferred income tax assets depends on the ability to generate sufficient taxable
income of the appropriate character in the future and in the appropriate taxing jurisdictions.
At December 31, 2023, the company had no gross domestic and foreign income tax loss carry forwards. At December 31, 2022,
the company had gross domestic and foreign income tax loss carry forwards $6.2 million. At December 2022, the company has
determined that a portion of the net operating loss deferred tax assets were not more-likely-than-not to be realized and avaluation allowance of $0.4 million was provided.
The following is a summary of the company’s unrecognized tax benefits:(in millions)

2023

Gross unrecognized tax benefits
Unrecognized tax benefits, net of tax impacts in other jurisdictions
Unrecognized interest and penalties related to uncertain tax positions
Interest and penalties recognized in the consolidated statements of income$

104.9 $
100.0
5.8
(0.5)

2022

110.2
104.2
9.6
(0.9)

The company does not believe it is reasonably possible that within the next twelve months, unrecognized tax benefits willchange by a significant amount.

17

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:(in millions)2023

Balance at January 1
Additions based on tax positions related to the current year
Additions for tax positions of prior years
Reductions for tax positions of prior years
Settlements with taxing authorities
Reductions as a result of lapse of statutes of limitations
Balance at December 31

$

$

2022

110.2 $
4.2
1.1
(1.5)
(7.6)
(1.5)
104.9 $

122.8
3.3
1.0
(1.5)
(14.7)(0.7)
110.2

The company is subject to U.S. federal income tax as well as income taxes in Illinois and other state and foreign jurisdictions.
As of December 31, 2023, substantially all federal income tax matters have been concluded through 2013 and state income tax
matters have been concluded through 2018.
9. EMPLOYEE BENEFIT PLANS
Pension Plan. CME maintains a non-contributory defined benefit cash balance pension plan for eligible employees. CME's
plan provides for a pay-based credit added to the cash balance account based on age and earnings and includes salary and cash
bonuses in the definition of earnings. Employees who have completed a continuous 12-month period of employment and havereached the age of 21 are eligible to participate. Participant cash balance accounts receive an interest credit equal to the greaterof the one-year constant maturity yield for U.S. Treasury notes or 4.0%. Participants become vested in their accounts after three
years of service. The measurement date used for the plan is December 31.
The following is a summary of the change in projected benefit obligation:(in millions)2023

Balance at January 1
Service cost
Interest cost
Actuarial (gain) loss
Benefits paid
Balance at December 31

$

$

2022

316.4 $
21.1
18.5
18.3
(22.8)
351.5 $

386.0
25.7
12.0
(86.7)(20.6)
316.4

The accumulated benefit obligation at December 31, 2023 and 2022 was $323.2 million and $294.4 million, respectively.
The following is a summary of the change in the fair value of plan assets:(in millions)2023

Balance at January 1
Actual return on plan assets
Employer contributions
Benefits paid
Balance at December 31

$

$

18

331.7 $
38.9
3.0
(22.8)
350.8 $

2022

402.3
(50.0)—(20.6)
331.7

The plan assets are classified into a fair value hierarchy in their entirety based on the lowest level of input that is significant toeach asset or liability’s fair value measurement. Valuation techniques for level 2 assets use significant observable inputs such as
quoted prices for similar assets, quoted market prices in inactive markets and other inputs that are observable or can besupported by observable market data. The fair value of each major category of plan assets as of December 31 is indicatedbelow.
(in millions)2023

Level 2:
Money market funds
Mutual funds:
Fixed income
U.S. equity
Foreign equity
Total

2022

$

6.2

$

165.3
131.6
47.7
350.8

$

16.6

$

131.6
129.8
53.7
331.7

At December 31, 2023, the fair value of pension plan assets had a shortfall of the projected benefit obligation by $0.7 million
and the shortfall was recorded as a non-current pension liability in other liabilities. At December 31, 2022, the fair value ofpension plan assets exceeded the projected benefit obligation by $15.3 million and the excess was recorded as a non-current
pension asset in other assets.
CME's funding goal is to have its pension plan 100% funded at each year-end on a projected benefit obligation basis, while alsosatisfying any minimum required contribution and obtaining the maximum tax deduction. Year-end 2023 assumptions havebeen used to project the assets and liabilities from December 31, 2023 to December 31, 2024. The company anticipates basedon this projection that an additional contribution of $16.9 million in 2024 will be necessary for it to meet its funding goal.
However, the amount of the actual contribution is contingent on various factors, including the actual rate of return on the plan
assets during 2024 and the December 31, 2024 discount rate.
The components of net pension expense and the assumptions used to determine the end-of-year projected benefit obligation andnet pension expense in aggregate are indicated below:(in millions)2023

Components of Net Pension Expense:
Service cost
Interest cost
Expected return on plan assets
Recognized net actuarial loss
Net Pension Expense$$

Assumptions Used to Determine End-of-Year Benefit Obligation:
Discount rate
Rate of compensation increase
Cash balance interest crediting rate
Assumptions Used to Determine Net Pension Expense:
Discount rate
Rate of compensation increase
Expected return on plan assets
Interest crediting rate

21.1
18.5
(21.6)
0.3
18.3

2022

$

$

25.7
12.0
(22.3)
1.4
16.8

5.20 %
4.00
5.14

5.60 %
4.00
4.75

5.60 %
4.00
6.75
4.75

3.00 %
4.00
5.75
4.00

The discount rate for the plan was determined based on the market value of a theoretical settlement bond portfolio. This
portfolio consisted of U.S. dollar denominated Aa-rated corporate bonds across the full maturity spectrum. A single equivalentdiscount rate was determined to align the present value of the required cash flow with that settlement value. The resulting
discount rate was reflective of both the current interest rate environment and the plan's distinct liability characteristics.
The basis for determining the expected rate of return on plan assets for the plan is comprised of three components: historicalreturns, industry peers and forecasted return. The plan's total return is expected to equal the composite performance of the
security markets over the long term. The security markets are represented by the returns on various domestic and international

19

stock, bond and commodity indexes. These returns are weighted according to the allocation of plan assets to each market andmeasured individually.
The overall objective of the plan is to achieve required long-term rates of return in order to meet future benefit payments. The
component of the investment policy for the plan that has the most significant impact on returns is the asset mix. The asset mix
has a minimum and maximum range depending on asset class. The plan assets are diversified to minimize the risk of large
losses by any one or more individual assets. Such diversification is accomplished, in part, through the selection of asset mix andinvestment management. The asset allocation for the plan, by asset category, at December 31 was as follows:
2023

Fixed income
Money market funds
U.S. equity
Foreign equity2022

47.1 %
1.8
37.5
13.6

39.7 %
5.0
39.1
16.2

For 2024, management expects the fixed income asset class to be approximately 50% of the portfolio. The target allocation for
the equity asset classes is expected to be approximately 50% of the portfolio.
At times, the company may determine that it is necessary to place some assets in cash equivalent investments in order to pay
expected plan liabilities. Given this, the actual asset allocation for the plan may not fall within the target allocation ranges fromtime to time.
According to the plan's investment policy, the plan is not allowed to invest in securities that compromise independence, shortsales of securities directly owned by the plan, securities purchased on margin or other uses of borrowed funds, derivatives not
used for hedging purposes, restricted stock or illiquid securities or any other transaction prohibited by employment laws. If theplan directly invests in short-term and long-term debt obligations, the investments are limited to obligations rated at the highest
rating category by Standard & Poor's (S&P) or Moody's.
The pre-tax balance and activity of the prior service costs and actuarial losses for the pension plan, which are included in othercomprehensive income (loss), for 2023 are as follows:(in millions)

Actuarial Loss

Balance at January 1
Unrecognized net loss
Recognized as a component of net pension expense
Balance at December 31

$

$

32.2
1.1
(0.3)
33.0

At December 31, 2023, anticipated benefit payments from the plan in future years are as follows:(in millions)

2023
2024
2025
2026
2027
2028-2032

$

32.1
32.5
33.8
34.5
35.2
182.6

Savings Plan. CME maintains a defined contribution savings plan pursuant to Section 401(k) of the Internal Revenue Code,whereby all U.S. employees are participants and have the option to contribute to this plan. CME matches employee
contributions up to 3% of the employee's base salary and may make additional discretionary contributions. Total expense forthe savings plan was $8.0 million and $7.6 million in 2023 and 2022, respectively.
Non-Qualified Plans. CME maintains non-qualified plans, under which participants may make assumed investment choiceswith respect to amounts contributed on their behalf. Although not required to do so, CME invests such contributions in assetsthat mirror the assumed investment choices. The balances in these plans are subject to the claims of general creditors of thecompany and totaled $91.3 million and $75.5 million at December 31, 2023 and 2022, respectively. Although the value of theplans is recorded as an asset in marketable securities in the consolidated balance sheets, there is an equal and offsetting liability.

20

The investment results of these plans have no impact on net income as the investment results are recorded in equal amounts toboth investment income and compensation and benefits expense.
Supplemental Savings Plan. CME maintains a supplemental plan to provide benefits for employees who have been impacted bystatutory limits under the provisions of the qualified pension and savings plan. Employees in this plan are subject to the vesting
requirements of the underlying qualified plans.
Deferred Compensation Plan. A deferred compensation plan is maintained by CME, under which eligible officers and membersof the board of directors may contribute a percentage of their compensation and defer income taxes thereon until the time of
distribution.
10. LEASES AND OTHER COMMITMENTS
Leases. The company has operating leases for datacenters and corporate offices. The operating leases have remaining leaseterms of up to 9 years, some of which include options to extend or renew the leases for up to an additional five years, and someof which include options to early terminate the leases in less than 12 months. Management evaluates the exercisability of these
options at least quarterly in order to determine whether the contract term must be reassessed. For a small number of the leases,
primarily the international locations, management's approach is to enter into short-term leases for a lease term of 12 months orless in order to provide for greater flexibility in the local environment. For certain office spaces, the company has entered into
arrangements to sublease excess space to third parties, while the original lease contract remains in effect with the landlord.
The company also has one finance lease, which is related to the sale of our datacenter in March 2016. In connection with thesale, the company leased back a portion of the property. The sale leaseback transaction was recognized under the financing
method and not as a sale leaseback arrangement.
The right-of-use lease asset is recorded within other assets, and the present value of the lease liability is recorded within otherliabilities (segregated between short-term and long-term) on the consolidated balance sheets. The discount rate applied to thelease payments represents the company's incremental borrowing rate. The company has elected to utilize the short-term lease
exception as prescribed in the leasing standard, such that the company has not capitalized on the balance sheet a lease asset orlease liability for leasing arrangements with a contractual term of 12 months or less from the lease commencement date.
The components of lease costs were as follows for the years ended December 31, 2023 and 2022:(in millions)2023

Operating lease expense:
Operating lease cost
Total operating lease expense included in other expense
Finance lease expense:
Interest expense
Depreciation expense
Total finance lease expense
Sublease revenue included in other revenue

2022

$
$

26.1 $
26.1 $

26.2
26.2

$
$

2.5 $
8.7
11.2 $

2.8
8.7
11.5

$

8.2 $

8.2

Supplemental cash flow information related to leases was as follows for years ended December 31, 2023 and 2022:(in millions)2023

Cash outflows for operating leases
Cash outflows for finance leases

$

21

2022

34.0 $
17.2

32.9
17.1

Supplemental balance sheet information related to leases was as follows as of December 31, 2023 and 2022:
Operating leases(in millions)2023

Operating lease right-of-use assets
Operating lease liabilities:
Other current liabilities
Other liabilities
Total operating lease liabilities

2022

$

133.1

$

151.0

$

20.3
183.1
203.4

$

25.7
203.4
229.1

$

Weighted average remaining lease term (in months)
Weighted average discount rate

$

102
3.9 %

112
3.9 %

Finance leases(in millions)2023

Finance lease right-of-use assets
Finance lease liabilities:
Other current liabilities
Other liabilities
Total finance lease liabilities

$

62.8

$

71.5

$

8.4
59.4
67.8

$

8.2
67.8
76.0

$

Weighted average remaining lease term (in months)
Weighted average discount rate

2022

$

87
3.5 %

99
3.5 %

Future minimum lease payments were as follows as of December 31, 2023 for operating and finance leases:(in millions)Operating Leases

2024
2025
2026
2027
2028
Thereafter
Total lease payments
Less: imputed interest
Present value of lease liability

$

22

27.7
28.0
28.5
26.3
25.6
103.5
239.6
(36.2)
203.4

(in millions)

Finance Lease

2024
2025
2026
2027
2028
Thereafter
Total lease payments
Less: imputed interest
Present value of lease liability

$

17.4
17.5
17.6
17.8
17.9
41.0
129.2
(61.4)
67.8

Other Commitments. Commitments include material contractual purchase obligations that are non-cancellable. Purchaseobligations relate to licensing, hardware, software and maintenance as well as telecommunication services. At December 31,
2023, future minimum payments due under purchase obligations were payable as follows (in millions):
Year

2024
2025
2026
2027
2028
Thereafter
Total

$

$

118.2
148.5
116.9
109.1
107.6
625.0
1,225.3

11. CONTINGENCIES
Legal and Regulatory Matters. In the normal course of business, the company discusses matters with its regulators raised during
regulatory examinations or otherwise subject to their inquiry and oversight. These matters could result in censures, fines,
penalties or other sanctions. Management believes the outcome of any resulting actions will not have a material impact on thecompany's consolidated financial position or results of operations. However, the company is unable to predict the outcome or
the timing of the ultimate resolution of these matters, or the potential fines, penalties or injunctive or other equitable relief, ifany, that may result from these matters.
A putative class action complaint was filed January 15, 2014 in the Circuit Court of Cook County, Chancery Division, against
CME Group Inc. and the Board of Trade of the City of Chicago, Inc. The plaintiffs, certain Class B shareholders of CME Groupand Class B members of CBOT, allege breach of contract and breach of the implied covenant of good faith and fair dealing forviolations of their core rights granted in the defendants’ respective Certificates of Incorporation. On December 2, 2021, thecourt granted the plaintiffs’ motion for certification of a damages-only class. No trial date has been set. Given the uncertainty offactors that may potentially affect the resolution of the matter, at this time the company is unable to estimate the reasonably
possible loss or range of reasonably possible losses in the unlikely event it were found to be liable at trial. Based on its
investigation to date, the company believes that it has strong factual and legal defenses to the claims.
In addition, the company is a defendant in, and has potential for, various other legal proceedings arising from its regularbusiness activities. While the ultimate results of such proceedings against the company cannot be predicted with certainty, thecompany believes that the resolution of any of these matters on an individual or aggregate basis will not have a material impact
on its consolidated financial position or results of operations.
No accrual was required for contingent legal and regulatory matters as none were probable and estimable as of December 31,
2023 and 2022.
Intellectual Property Indemnifications. Certain agreements with customers and other third parties related to accessing the CMEGroup platforms, utilizing market data services and licensing CME SPAN software may contain indemnifications from
intellectual property claims that may be made against them as a result of their use of the applicable products and/or services.
The potential future claims relating to these indemnifications cannot be estimated and therefore no liability has been recorded.

2312. GUARANTEES
Mutual Offset Agreement. CCME and Singapore Exchange Limited (SGX) maintain a mutual offset agreement with a current
term through May 2024. This agreement enables market participants to open a futures position on one exchange and liquidate iton the other. The term of the agreement will automatically renew for a one-year period after May 2024 unless either party
provides advance notice of its intent to terminate. CME can maintain collateral in the form of irrevocable, standby letters ofcredit. At December 31, 2023, CME was contingently liable to SGX on irrevocable letters of credit totaling $285.0 million.
CME also maintains a $350.0 million line of credit to meet its obligations under this agreement. Regardless of the collateral,
CME guarantees all cleared transactions submitted through SGX and would initiate procedures designed to satisfy thesefinancial obligations in the event of a default, such as the use of performance bonds and guaranty fund contributions of thedefaulting clearing firm. Management has assessed the fair value of the company's guarantee liability under this mutual offset
agreement by taking the following factors into consideration: the design and operations of the clearing risk management
process, the financial safeguard packages in place, historical evidence of default by a clearing member and the estimatedprobability of potential payouts by the clearing house. Based on the assessment performed, management estimates the guarantee
liability to be nominal and therefore has not recorded any liability at December 31, 2023.
Family Farmer and Rancher Protection Fund. In 2012, the company established the Family Farmer and Rancher Protection
Fund (the Fund). The Fund is designed to provide payments, up to certain maximum levels, to family farmers, ranchers andother agricultural industry participants who use the company's agricultural products and who suffer losses to their segregatedaccount balances due to their CME clearing member becoming insolvent. Under the terms of the Fund, farmers and ranchers are
eligible for up to $25,000 per participant. Farming and ranching cooperatives are eligible for up to $100,000 per cooperative.
The Fund has an aggregate maximum payment amount of $100.0 million. Since its establishment, the Fund has made payments
of approximately $2.0 million, which leaves $98.0 million available for future claims. If payments to participants were to
exceed this amount, payments would be pro-rated. Clearing members and customers must register in advance with the company
and provide certain documentation in order to substantiate their eligibility. The company believes that its guarantee liability isnominal and therefore has not recorded any liability at December 31, 2023.
13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The following tables present changes in the accumulated balances for each component of other comprehensive income (loss),including current period other comprehensive income (loss) and reclassifications out of accumulated other comprehensive
income (loss):
Defined Benefit
Plans(in millions)

Balance at December 31, 2022
Other comprehensive income (loss) before reclassifications and income tax benefit (expense)Amounts reclassified from accumulated other comprehensive income (loss)
Income tax benefit (expense)
Net current period other comprehensive income (loss)
Balance at December 31, 2023$$

(21.9) $
(0.7)
0.1
0.2
(0.4)
(22.3) $Defined Benefit
Plans(in millions)

Balance at December 31, 2021
Other comprehensive income (loss) before reclassifications and income tax benefit (expense)Amounts reclassified from accumulated other comprehensive income (loss)
Income tax benefit (expense)
Net current period other comprehensive income (loss)
Balance at December 31, 2022$$

(33.9) $
14.9
1.2
(4.1)
12.0
(21.9) $Total(21.9)
(0.7)
0.1
0.2
(0.4)
(22.3)

Total(33.9)
14.9
1.2
(4.1)
12.0
(21.9)

14. FAIR VALUE MEASUREMENTS
Level 1 assets generally include investments in publicly traded mutual funds with quoted market prices. In general, thecompany uses quoted prices in active markets for identical assets to determine the fair value of marketable securities. If quoted
prices are not available to determine fair value, the company uses other inputs that are directly observable.

24

Financial assets and liabilities recorded in the consolidated balance sheet as of December 31, 2023 and 2022 were classified intheir entirety based on the lowest level of input that was significant to each asset or liability's fair value measurement.
At December 31, 2023
(in millions)

Assets at Fair Value:
Marketable Securities:
Mutual funds
Total Marketable Securities
Total Assets at Fair Value

Level 1$$

Level 2

91.3
91.3
91.3

$

Level 3

—
—
—

$

$

Total

—
—
—

$

$

91.3
91.3
91.3

$

At December 31, 2022
(in millions)

Assets at Fair Value:
Marketable Securities:
Mutual funds
Total Marketable Securities
Total Assets at Fair Value

Level 1

$

75.5

$

75.5
75.5

Level 2

Level 3

$

—

$

—
—

Total

$

—

$

—
—

$

75.5

$

75.5
75.5

There were no level 3 assets or liabilities valued at fair value on a recurring basis during 2023 and 2022.
There were also no level 3 assets or liabilities valued at fair value on a non-recurring basis during 2023.
15. REGULATORY REQUIREMENTS
CME is regulated by the CFTC as a DCO and a DCM. DCOs and DCMs are required to maintain capital as defined by the
CFTC in an amount at least equal to one year of projected operating expenses as well as cash, liquid securities, or a line ofcredit at least equal to six months of projected operating expenses. CME is in compliance with the DCO and DCM financial
requirements.
16. SUBSEQUENT EVENTSThe company has evaluated subsequent events through March 20, 2024, the date the financial statements were available to beissued, and has determined that there were no subsequent events that required disclosure.

25