Feb 12 (Reuters) - Exchange operator CME Group ( CME )

reported a higher fourth-quarter profit on Wednesday, helped by

increased hedging activity by investors looking to mitigate

risks from geopolitical and economic uncertainty.

Market volatility remained high in the quarter due to

tensions in the Middle East, uncertainty around U.S. President

Donald Trump's policy and the Federal Reserve's interest-rate

cuts.

Trading volumes at exchanges tend to jump during periods of

heightened uncertainty as clients increase their hedging

activities.

The company's total average daily volume rose marginally

from a year earlier to 25.5 million contracts.

Net profit attributable to the common shareholders of CME

stood at $863.7 million, or $2.40 per share, in the three months

ended December 31, compared with $804.3 million, or $2.24 per

share, a year ago.