CME Launches New E-Mini Sector Index Futures07.08.2022
CME Group, the world’s leading derivatives marketplace, announced plans to expand its suite of Sector futures with the addition of six new contracts on August 8, pending regulatory review. These new contracts will include:
- E-mini S&P Regional Banks Select Industry futures
- E-mini S&P Insurance Select Industry futures
- E-mini S&P Biotechnology Select Industry futures
- E-mini S&P Oil & Gas Exploration and Production Select Industry futures
- E-mini S&P Retail Select Industry futures
- E-mini PHLX Semiconductor Sector Index futures
“We continue to see strong market demand for liquid, cost-effective and capital-efficient tools to track the same underlying indices as some of the most popular ETFs,” said Tim McCourt, CME Group Global Head of Equity and FX Products. “These new contracts will provide more opportunities and versatility in managing sector exposure and will complement the growing liquidity pool of our existing Sector futures product suite, which cover more than 10 S&P Select Sectors, as well includes Dow Jones US Real Estate and Nasdaq Biotech futures, giving clients more tools to meet their trading needs.”
Coming soon: more opportunities to manage sector exposure. CME Group is introducing six new Equity Index Sector futures starting August 8. https://t.co/mttlLEWYlz
— CME Group (@CMEGroup) July 7, 2022
“We are very pleased to expand our ongoing collaboration with CME Group with the launch of the exchange’s latest series of E-mini futures contracts based on the S&P Select Industry Indices,” said Aye Soe, Global Head of Core and Multi-Asset Product Management at S&P Dow Jones Indices. “These popular family of indices measure the performance of stocks that comprise specific Global Industry Classification Standard sub-industries and reflect growing market demand for more targeted and diverse industry exposures as investors navigate uncertain and volatile market conditions.”
“Launched in 1993, the PHLX Semiconductor Sector Index™ has been particularly relevant recently as it reflects a transformative period for the semiconductor industry,” said Cameron Lilja, Vice President, Global Head of Index Product, Nasdaq. “We are pleased to expand our long-term partnership with CME Group by continuing to provide timely and innovative solutions that help investors achieve their investment objectives amid ever-evolving market dynamics.”
CME Group’s existing Sector futures product suite, which includes the E-mini Select Sectors Index futures, E-mini Dow Jones Real Estate Index futures and E-mini Nasdaq Biotech Index futures, have been growing significantly over the last few years, with 2022-to date average daily volume (ADV) up a record 14% versus 2021 and June ADV up nearly 200% versus May.
The paper proposes a path forward for standard SLD documentation.
Exchange group’s crypto suite has had consistent volume and open interest growth.
The derivatives venue owned by FTX wanted to offer products that were not fully collateralized.
The proposed standard applies to the processing of give-ups and allocations.
The launch is a milestone in establishing €STR as the new benchmark risk-free rate.