The widest selection of benchmark products.
Access to all major asset classes.
Traditional and alternative product choices.
Trading through CME Group is like shopping at a superstore &nash; customers can find whatever they are looking for in one place. Whether the focus is on interest rate risk, equity portfolios, foreign currency rates, commodity prices, housing prices or even the weather, CME Group can be of assistance. Key partnerships with innovative technology companies, index providers and other financial services companies add to the rich product mix. CME Group customers themselves are a diverse group, and include banks, hedge funds, proprietary trading companies, financial institutions, global corporations, individual investors, agricultural commodity traders and others.
Pair all this with transparent pricing and a regulated, centralized marketplace that provides equal access to all participants, and the result is unlimited opportunity.
“CME Group offers access to an
unparalleled product lineup that spans
every asset class,” says Rick Redding,
managing director of products and services
for CME Group. “CME Group provides
world-class benchmark products that
serve as risk management tools for every
customer segment. We do that by offering
liquid markets supported by CME Group's
products and services for open outcry
venues along with central counterparty
clearing efficiencies. We also continually
expand our offerings based on the changing
demands of our clients.”
Interest Rate Products
CME Group interest rate products span the entire U.S. dollar-denominated yield curve. Customers can use our products to manage short-, medium- and long-term interest rate risk with products based on Eurodollars, U.S. Treasuries, interest rate and credit default swaps, and other dollarrelated instruments.
These products provide trading opportunities and resources for risk management related to interest rate exposures ranging from overnight- to 30-year investment horizons. Eurodollar futures are the world's most actively traded interest rate contract and a benchmark for global investors, and our Eurodollar options comprise the largest and most liquid options markets in the world. Our benchmark U.S. Treasury contracts are the world's most widely traded contracts for measuring long-term investment risk. And in fourth-quarter 2007, CME Group will expand its offerings with the addition of futures and options products based on the Lehman Brothers U.S. Aggregate Index, the preeminent benchmark debt index for U.S. investmentgrade fixed income securities. We also offer products that address rate risk in Europe and Japan.
CLEARING PARTNER: SINGAPORE EXCHANGE (SGX )
CME Group works in partnership with SGX to provide the Mutual Offset
System (MOS), which enables traders to open a futures position on one
exchange and liquidate it on the other. The MOS is available for four
CME Group contracts: Eurodollars, Euroyen TIBOR, Yen-Denominated
Nikkei and Dollar-Denominated Nikkei.
“This arrangement enhances round-the-clock trading of leading interest rate and stock index products by giving market participants the ability to clear trades in their own time zone. Market feedback indicates this is an important feature and I am glad that we can continue to make it available.”
– Hsieh Fu Hua, Chief Executive Officer, SGX
SUBSIDIARY: SWAPSTREAM
Swapstream is a service provider offering a global trading platform
to banks, brokers and clients in the interest rate swaps trading community.
A subsidiary of CME Group, Swapstream brings to the interest
rate swaps market the only neutral electronic multilateral trading system
that combines the flexibility of the over-the-counter marketplace with
the operational and cost efficiencies of electronic trading. Swapstream
offers screen-based trading that operates in tandem with inter-dealer
voice broker networks. Swapstream's two platforms &nash; sDealer, designed
for the swaps dealer community, and sPro, designed for the needs of
the sophisticated professional trader &nash; facilitate medium- and longterm
interest rate swaps (including outright, futures cross, implied
calendar and butterfly spreads) in euros, U.S. dollars, Swiss francs,
Eonia, and British pounds.
“ The OTC derivative trading community has expressed a clear desire for greater transparency and posttrade efficiencies… Swapstream is now poised to set the industry standard for electronic interest rate swaps trading.”
– Stephane Rio, Chief Executive Officer, Swapstream
Equity Products
CME Group is the leading equity index derivatives marketplace, offering futures and options on key benchmark indexes that cover the spectrum of small-, medium- and large-cap indexes in the United States, Europe and Asia. Our global product suite includes contracts on such wellknown indexes as the S&P 500, Dow Jones Industrial Average, NASDAQ-100, Nikkei 225 Stock Average, MSCI EAFE, FTSE/Xinhua China 25 and more. We also offer several unique products, such as futures on Exchange Traded Funds (ETFs) and TRAKRS, the first broad-based index products traded on a U.S. futures exchange that can be sold by securities brokers.
These tools enable institutions and investors located around the world to manage equity investment risks and gain access to pricing variations efficiently and cost-effectively.
PRODUCT PARTNER: STANDARD & POOR'S
In a partnership that began in 1982, CME Group offers futures and options
on the benchmark S&P 500, S&P Asia 50, S&P Midcap 400, S&P Smallcap
600, S&P 500 Citigroup/Growth, S&P 500 Citigroup/Value, S&P
GSCI (Goldman Sachs Commodity Index), S&P GSCI Excess Return and
S&P/Case-Shiller Home Price indexes. The innovative E-mini S&P 500
was the first E-mini product and the model for all E-minis that followed.
“It's been terrific to embark on new areas and have partners you could work with and make things better. We started our CME relationship with the S&P 500 futures contract and look at what has taken place since 1980.”
– Terry Mcgraw, Chairman and Chief Executive Officer, McGraw-Hill, Owner of Standard & Poor's
PRODUCT PARTNER: NASDAQ
CME Group, in a joint agreement with the Nasdaq Stock Market that
began in 1996, lists futures and options on the benchmark NASDAQ-
100 Index, the benchmark NASDAQ Composite Index and the NASDAQ
Biotechnology Index.
“Index investing can be very active or very conservative. But more active investors are frequently moving in and out of futures and options positions.”
– John Jacobs,Chief Executive Officer, NASDAQ
PRODUCT PARTNER: DOW JONES
As the result of a longstanding partnership, CME Group offers futures
and options on key Dow Jones indexes, including the benchmark Dow
Jones Industrial Average, which provides customers portfolio flexibility
in how they choose to manage market volatility.
“The Dow Jones Industrial Average futures contract enables customers to participate in the broad market by taking a position in the performance of the DJIA , the most recognized barometer of the U.S. stock market.”
– Michael Petronella , President, Dow Jones Indexes and Reprints
PRODUCT PARTNER: FTSE/XINHUA CHINA 25 INDEX
CME Group offers futures and options on the FTSE/Xinhua 25 Index, a listing
of 25 of the largest Chinese companies listed on the Hong Kong Stock
Exchange, in partnership with the FTSE/Xinhua Limited (FXI), a joint venture
company of the FTSE Group and the Xinhua Financial Network.
“We are very pleased to be partnering with CME , a recognized institution in the Asian financial community. All of the stocks in our FXI China 25 Index are liquidity screened, and individual index constituents are capped at 10 percent to avoid over-concentration of any single stock. The result is a liquid stock index that will now appeal to even more investors when it can be traded as a futures contract.”
– Norman Yen, Managing Director, FXI
PRODUCT PARTNER: MORGAN STANLEY
In partnership with Morgan Stanley, CME Group lists futures and
options on the MSCI EAFE, the benchmark for foreign stock funds,
consisting of stocks from 21 developed markets, excluding the United
States and Canada.
“We are delighted to have licensed our MSCI EAFE Index to CME as the basis of a futures contract. A futures contract will further complement the EAFE Index as the premier international benchmark.”
– Rabbe Ekholm, Chief Commercial Officer, Saxo Bank, (Former Managing Director, MSCI Barra)
PRODUCT PARTNER: NIHON KEIZAI SHIMBUN (NIKKEI)
CME Group has a partnership agreement with Nikkei to offer futures
and options on the Nikkei 225, a stock market index for the Tokyo Stock
Exchange (TSE) and the most watched index of Asian stocks.
“Trading Nikkei futures and options symbolizes the globalization of the world's financial markets. The success of Nikkei futures and options contracts in Osaka demonstrates how important these risk management products have become to all the world's markets.”
– Leo Melamed, Chairman Emeritus, CME Group
SUBSIDIARY: ONECHICAGO
OneChicago is a joint venture of Interactive Brokers Group, CME Group
and the Chicago Board Options Exchange. It is the first all-electronic
exchange in the United States to offer futures trading on individual stocks,
narrow-based indexes and exchange traded funds (ETFs).
“OneChicago provides clients with the most innovative way to get exposure to individual equity securities. Single stock futures allow investors and traders access to sophisticated trading strategies in the most efficient manner.”
– Rick Redding, Managing Director, Products and Services, CME Group
Commodity Products
CME Group offers the widest range of commodity futures and options of any U.S. exchange, with trading available on a range of grains, livestock, oilseeds, dairy, lumber and other products. These products are the staples of everyday life and represent the origins of the earliest forward and futures markets.
Prices of these primary products are subject to factors that are difficult or impossible to control, such as weather, disease and political decisions. In addition, they are also short-term fixed supply products offered in a context of growing worldwide demand and global economic expansion. As such, CME Group commodity products serve two customer groups &nash; farmers and agribusinesses seeking risk management and hedging tools, and hedge funds and other traders looking to capitalize on the extraordinary opportunities these markets offer.
STRATEGIC PARTNER: JOINT ASIAN DERIVATIVES EXCHANGE (JADE)
The Chicago Board of Trade and the Singapore Exchange in 2006
created the Joint Asian Derivatives Exchange (JADE) &nash; an all-electronic,
Asian-based commodity exchange with diverse trading opportunities
for global market participants. A division of SGX Derivatives Trading Ltd.,
JADE offers trading in rubber and crude palm oil futures.
“The crude palm oil contract is a result of market feedback and research involving global participants in the physical crude palm oil market. Its design will meet the growing international demand for risk management tools for crude palm oil from producers, processors and the emerging bio-fuel industry.”
– Benjamin Foo, Chief Executive Officer, JADE
Foreign Exchange Products
CME Group is the largest regulated marketplace for FX (foreign exchange) trading, and the second largest electronic marketplace in the world for FX trading. We offer 41 futures contracts and 31 options contracts based on 19 global currencies, including major world currencies and currencies of emerging markets. Our FX volume has grown significantly in recent years, with average daily notional value of trades exceeding $80 billion.
The CME Group FX market serves as an effective and efficient means of risk transfer for the global FX market, bringing together a broad array of client segments &nash; including banks, hedge funds, proprietary trading firms and individual investors &nash; by offering investment as well as risk management opportunities.
JOINT VENTURE: FXMARKETSPACE
FXMarketSpace is the first centrally cleared, global, over-the-counter
FX marketplace. It was created in 2006 as a 50-50 joint venture between
CME, the predecessor of CME Group, and Reuters, the global information
company, and launched in first-quarter 2007.
It combines the central counterparty model and clearing function of CME Group with the global distribution network and straight-through processing capability of Reuters. It is supported by market-leading technology that offers elements not found in any other FX platform. FXMarketSpace provides complete price transparency and anonymity, around-the-clock electronic trading, easy access and increased efficiencies for inter-dealer and institutional FX transactions.
“The FX market has talked about a centrally cleared platform for years and we have been able to make it available to everyone for the first time. By utilizing the core competencies available to us at CME, Reuters and within our own team, we have created a platform that can transform the cash FX industry and take it to a new level.”
– Rick Sears, President and Chief Sales Officer, FXMarketSpace
Alternative Investment Products
Consistent with our shared history of innovation, CME Group offers alternative, non-traditional investment products, enabling our customers to better diversify and manage their risks. Recent innovations include:
Weather Products
Our weather product suite offers trading opportunities related to temperatures,
snowfall, frost and hurricanes. The products are based on a
range of weather conditions in 18 U.S., six Canadian, nine European and
two Asian cities, with the hurricane products geared to five U.S. regions.
One-third of businesses worldwide are adversely affected by weather conditions. These products enable commercial enterprises to manage weather-related risk while also offering opportunities for speculators to absorb that risk in exchange for possible profit on weather variations.
PRODUCT PARTNER: CARVILL GROUP
“CME Group is the clear market leader in weather derivatives and we believe this new product will offer a wider range of catastrophe solutions to our customers. The convergence of the insurance markets and the broader financial community continues at a rapid pace, and our products, particularly in the catastrophe area, are becoming more commoditized in order to appeal to a more diverse range of capital providers. An exchange traded derivative product for catastrophic hurricane risk is a natural progression to this trend.”
– John Cavanagh, Joint Chief Executive Officer, Carvill Group
Real Estate Products
Our real estate marketplace covers both U.S. residential and commercial
properties &nash; the largest domestic asset class, valued at more than
$26 trillion. These products provide hedging exposure to fluctuating real
estate values and help offset the potential impact of sustained price
declines. They also offer a way for investors to capitalize on price fluctuations
and to diversify their portfolios without purchasing real estate.
PRODUCT PARTNER: MACRO SECURITIES RESEARCH, LLC (MSR)
“Housing is one of the largest asset classes in the world with approximately 75 million homeowners and tens of thousands of institutions and investors with exposure through new home construction, lending and mortgage-backed securities. There are also many institutions looking to gain exposure to this unique asset class. Creating capital market liquidity to housing is long overdue.”
– Samuel Masucci, III, President and Chief Executive Officer, MSR
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