Summary
CME Group Inc. (CME) filed an 8-K report on June 29, 2007, detailing an expansion of its partnership with Standard & Poor's Corporation (S&P). This strategic move involves the introduction of new E-mini Small Cap Stock Index Futures Contracts based on S&P U.S. equity indices, specifically designed to cater to institutional asset managers seeking to hedge and manage portfolios of small-cap companies. The core of this announcement is CME's intention to transition open interest from its current Russell 2000 stock index futures contracts to these new CME/S&P E-mini contracts. This planned transition is set to occur following the expiration of CME's agreement with Frank Russell Company in September 2008. The average daily trading volume for CME's Russell-based equity index products in May 2007 was significant at 212,351 contracts, indicating a substantial market for small-cap index futures that CME aims to capture with this new S&P-based offering.
Key Highlights
- 1CME Group is expanding its partnership with Standard & Poor's (S&P).
- 2New E-mini Small Cap Stock Index Futures Contracts based on S&P U.S. equity indices will be listed.
- 3These new contracts are targeted at institutional asset managers for hedging small-cap company portfolios.
- 4CME intends to facilitate a transition of open interest from Russell 2000 futures to the new S&P-based E-mini contracts.
- 5This transition is planned to occur after the expiration of CME's agreement with Frank Russell Company in September 2008.
- 6The new products will be exclusively offered on the CME Globex platform and supported by dedicated market makers.
- 7In May 2007, CME's Russell equity index products saw an average daily trading volume of 212,351 contracts.