CME Group to Add New S&P Communication Services Select Sector Futures

Underlying index includes 26 companies with average market cap of $97.2 billion

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Aug 09, 2018, 08:30 ET

CHICAGO, Aug. 9, 2018 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, will expand its suite of E-mini S&P Select Sector futures with the addition of a new Communication Services Select Sector futures contract. Pending regulatory review, the new product will be available to trade starting Sept. 10, 2018, alongside CME Group's existing 10 Select Sector futures products.

"We are pleased to offer our customers precise exposure to the rapidly-changing communications sector through our suite of E-mini S&P Select Sector Index futures," said Tim McCourt, CME Group Global Head of Equity Index Products and Alternative Investments. "We continue to see strong market demand for liquid, cost-effective and capital-efficient tools to track the same underlying indices as the most popular ETFs."

CME Group's addition of Communication Services Select Sector futures precedes S&P Dow Jones Indices and MSCI's planned revision of its Global Industry Classification Standard (GICS®) sectors of information technology, consumer discretionary and telecommunications on Sept. 21, 2018. The broadened and renamed Communication Services sector will consist of 26 companies, including AT&T, Verizon, Facebook, Netflix, Google and Disney. The underlying index has an average market cap of $97.2 billion, as of Aug. 8, 2018.

CME Group will provide customers with a fee waiver for Basis Trade at Index Close (BTIC) transactions related to this new product to help rebalance exposure between this new sector and existing Select Sector Index futures.

CME Group currently offers E-mini S&P Select Sector futures products in the following sectors: technology, health care, utilities, consumer staples, finance, consumer discretionary, energy, materials, industrial and real estate. In the second quarter of 2018, Select Sector futures traded more than 12,000 contracts per day, an increase of 71 percent compared to the second quarter of 2017.

E-mini S&P Select Sector futures are listed by and subject to the rules of CME. More information is available at www.cmegroup.com/selectsectors.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform. CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing, which offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives. CME Group products and services ensure that businesses around the world can effectively manage risk and achieve growth.

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SOURCE CME Group