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Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

CME's Third Quarter Jumps on Higher Trading Margins [Reuters]

Summary: Chicago Mercantile Exchange Holdings Q3 earnings rose to $104M ($2.95/share) from $77.5M ($2.22) y/y, beating Street estimates of $2.86. CME managed to squeeze out a better-than-expected rate-per-contract profit margin, reflecting the steadily rising use of Globex, its electronic platform, for interest rate options trading. Net revenues CME Chart 25 10 06of $274M were slightly lower than Wall Street estimates of $282M. It's cash earnings of $107M were a record; CME says cash generation is "its primary focus." Average daily trading volume (5.4M contracts) was up 28%. While all its "growth areas" were strong, CME called its recent initiative to list NYMEX energy contracts a "home run." But shares were down 1.1% ($5.31 to $498) in afternoon trading, prompting Edward Ditmire, analyst at Fox-Pitt, Kelton Group to comment, "They unequivocally beat the Street, but people have high expectations on CME."
Related links: CME/CBOT merger commentary: U.S. Exchanges Continue To Trim Expenses Through Consolidation, M&A ActivityOn the CME-CBOT Merger: Is Chicago the World’s New Risk Manager?CME/CBOT Merger Creates World's Biggest Derivatives ExchangeCME/CBOT to Merge Into $25B Derivatives ExchangeConference call (audio)
Potentially impacted stocks and ETFs: Chicago Mercantile Exchange Holdings (CME), CBOT Holdings Inc. (BOT), NYSE Group Inc. (NYX), Nasdaq Stock Market Inc. (NDAQ), International Securities Exchange Inc (ISE) • ETFs: First Trust IPOX-100 Index (FPX), iShares Dow Jones US Broker-Dealers Index Fund ETF (IAI) and streetTRACKS KBW Capital Markets (KCE) each have approx. 5% holdings in CME

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Source: CME Profits Beat Street -- Shares Fall on "Even Higher" Expectations