Custom Index Futures
About Custom Index Futures

Custom Index futures offer custom equity market exposure with the benefits of standardized equity index futures contracts. They:

  • Are designed for institutional traders seeking tailored equity market exposure not available in benchmark index contracts
  • Offer the same type of customized exposure available from over-the-counter equity derivatives
  • Offer the security of centralized clearing and transparency of our futures contracts
  • Are developed working with our partner firms to address a specific market need or trading strategy

Custom Index Futures Overview

 


Custom Index Futures Product Slate

SGI WISE Index Futures launch Feb. 7

SGI WISE US Top Index futures
Focused on stocks in the top 10th percentile of the S&P 500*

SGI WISE US Bottom Index futures
Focused on stocks in the bottom 10th percentile of the S&P 500*

SGI WISE US Long/Short Index futures
Focused on the excess return of a long investment in Top Portfolio stocks and a short investment in Bottom Portfolio stocks

*As selected using the "WISE model," a proprietary stock ranking model developed by Societe Generale.

SGI WISE US Indices disclaimer


Read Special Executive Report

 


How Custom Index Futures Work
  • Customer or partner firm identifies need for a certain type of equity market exposure
  • If needed, CME Group can arrange an index calculation agent to develop the custom index
    • Calculation agents may be from Dow Jones Indexes or other companies
  • Partner firm and/or calculation agent creates custom index
  • CME Group creates and lists the index-based futures contract on the CME Globex platform.
  • The custom index contract functions like our other index-based futures contracts, offering:  
    • Daily settlement process
    • Special opening quotation
    • Public pricing

 


Benefits of Custom Index Futures
  • Flexibility
    • Geared to market demand or trading strategy need
  • Safety and security of CME Clearing
    • Substantial minimizing of counterparty risk
  • Price transparency
  • Block and EFRP eligibility
  • Traded on regulated marketplace
    • Daily mark-to-market process
  • Potential cross margining benefits
  • Operational and capital efficiencies

 


About Custom Index Calculation Services

Our relationships with leading global index providers enable us arrange services for the calculation and administration of custom indexes. That includes the expertise and resources of Dow Jones Indexes, a CME Group company, for creating custom indexes tailored to suit special indexing needs.

More on Dow Jones Custom Index Solutions

 


Safety and Security of CME Clearing

Clearing member firms are monitored and audited for:

  • Risk
  • Capital adequacy
  • Compliance with customer protection rules and regulations

Learn more about CME Clearing

Contacts/CME Group

For more information about Custom Index Futures contact:

Richard Co
richard.co@cmegroup.com

John Nyhoff
john.nyhoff@cmegroup.com

Contacts/SGI WISE Indexes
 
 
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