CME Group Inc reported higher quarterly earnings on Tuesday as the exchange operator's average daily trading volume rose 11 percent from a year earlier.

Earnings still fell short of analysts' expectations amid a drop in the average fee per contract.

Net profit in the fourth quarter rose to $193.1 million, or 58 cents a share, from $166.8 million a year earlier, or 50 cents a share. Adjusted earnings were 64 cents a share. Analysts expected 68 cents, according to Thomson Reuters I/B/E/S.

Revenue increased to $687 million from $660.9 million.

The average daily volume at CME was 11.3 million contracts, up 11 percent from a year earlier, according to company data. The increase was led by a 29 percent jump in interest rate volume, to an average of 5.274 million contracts a day. However, the average fee per contract during the quarter was 78 cents, down from 83.1 cents a year earlier, according to CME.

"The new year is off to a good start, with increased volatility in interest rate, equity, and energy markets resulting in an increase of 13 percent in average daily volume in January," Chief Executive Phupinder Gill said.