Investors Will Soon Be Able to Trade Daily Futures Price Moves with Event-Based Contracts from CME Group
Smaller-sized products will allow investors to trade on their knowledge of benchmark global metals, energy, equities and foreign currency futures markets with risk limited to the amount of their trade
CHICAGO, March 14, 2022 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced that it is introducing event-based contracts designed for the retail audience that will make it easier for everyone to trade their views on daily up or down price moves in some of the world's most widely quoted benchmark futures markets, including gold, oil, equity indices and foreign currencies. These new daily options on futures contracts will offer short-term trading opportunities for individuals seeking to take a position on daily price moves using smaller-value trades of up to $20 per contract.
Individuals will be able to trade their view on whether the price of key futures markets will move up or down by the end of each day's trading session, beginning with gold, silver, copper, crude oil, natural gas, E-mini S&P 500, E-mini Nasdaq-100, E-mini Dow Jones Industrial Average, E-mini Russell 2000 and euro-U.S. dollar foreign exchange. Each event-based contract will be fully collateralized, with limited risk, meaning investors can choose their maximum profit or loss at the time of the trade.
"Retail investors have become increasingly savvy about their investment decisions and are actively seeking hands-on trading opportunities in new markets," said Terry Duffy, CME Group Chairman and Chief Executive Officer. "Our new event-based contracts will provide this dynamic retail investing crowd a simpler, lower-cost way to participate in some of the world's most recognized markets – many of which they interact with every day."
"We are excited to support the launch of event-based contracts from CME Group," said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. "The growth of the CME Group suite of micro products along with our low commissions, continue to benefit our clients seeking increased trading flexibility with less upfront commitment. We anticipate that the event-based contracts will be met with investor interest and we look forward to offering this new category of products to our active trader client base."
"Working with CME Group to introduce event-based contracts directly aligns with our mission to increase accessibility to the dynamic futures markets for retail investors," said Martin Franchi, CEO of NinjaTrader Group, LLC. "Our recent acquisition of Tradovate highlights our commitment to delivering innovative technology and customer-centric solutions. We appreciate the progressive product strategy from CME Group, which has helped accelerate the adoption of futures across the growing trading community."
Subject to relevant regulatory reviews, event-based contracts from CME Group are expected to launch in Q3 2022.
For more information on this product, please see: www.cmegroup.com/eventcontracts.
As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec and EBS are trademarks of BrokerTec Europe LTD and EBS Group LTD, respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
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SOURCE CME Group
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