1. Which additional E-mini Sector Index futures are now available?

Six new E-mini Sector Index futures are now available for trading.

  • E-mini S&P Regional Banks Select Industry futures
  • E-mini S&P Insurance Select Industry futures
  • E-mini S&P Biotechnology Select Industry futures
  • E-mini S&P Oil & Gas Exploration & Production Select Industry futures
  • E-mini S&P Retail Select Industry futures
  • E-mini PHLX Semiconductor Sector Index futures

2. What are the underlying indices of these contracts?

The underlying indices for the above future are respectively as follows:

  • S&P Regional Banks Select Industry Index
  • S&P Insurance Select Industry Index
  • S&P Biotechnology Select Industry Index
  • S&P Oil & Gas Exploration & Production Select Industry Index
  • S&P Retail Select Industry Index
  • PHLX Semiconductor Sector Index

The S&P Select Industry Index methodology can be found here

The PHLX Semiconductor Sector Index can be found here


3. How do the S&P Select Industry Indices compare to the S&P Select Sector Indices?

These products are not based on the same methodology as the S&P Select Sector Indices (upon which CME Group has E-mini Select Sector futures already listed). The new S&P Select Industry Indices measure the performance of stocks comprising specific Global Industry Classification Standard (GICSÒ ) sub-industries or groups of sub-industries. Membership is based on a company’s GICS classification, as well as liquidity and market capitalization requirements. The indices are equal or capped market capitalization weighted, as defined in Index Construction.


4. Why are these contracts being launched now?

CME Group’s existing Sector futures product suite, which includes the E-mini Select Sectors Index futures, Dow Jones Real Estate Index futures, and E-mini Nasdaq Biotech Index futures, have been growing significantly over the last few years and are trading at a record ADV so far in 2022 versus prior years.1

To complement this growing liquidity pool, participants have been asking for additional sector-based index futures to be made available to further broaden the range of sector futures offered to clients to risk manage their needs. When the additional E-mini Sector Index futures launch on August 8, pending regulatory review, a total of 19 Equity Index Sector futures will be available.


5. Are these contracts eligible for block trading?

Yes, these contracts are eligible for outright block trades, derived block trades, as well as BTIC block trades. 

Note the minimum price increment for outright block trades and derived block trades is one cent. The minimum price increment for BTIC block will conform to the minimum price increment as stated in the individual contract specifications. Please see the latest Rule 526 MRAN here.


6. What is the minimum block size for these new contracts?

The minimum block size is 50.


7. Are the new E-mini S&P Sector Index futures EFP eligible?

Yes.  As CME Group future contracts, these additional sector index futures are eligible for Exchange For Related Position (EFRP) trades. They can be utilized in a privately negotiated EFP trade where the physical side can be a related ETF.  For more questions on EFPs, please see the latest Rule 538 MRAN here


8. What are the new product codes and tickers, including the underlying index tickers?

  Sector UNDERLYING INDEX TICKER CME FUTURES TICKER CME BTIC BLOCK TRADE TICKER BLOOMBERG FRONT-MONTH FUTURES TICKER THOMSON REUTERS FRONT-MONTH FUTURES TICKER
E-MINI S&P SELECT SECTOR INDUSTRY FUTURES CONTRACT Regional Banks SPSIRBK SXB RKT SVWA XBS
Insurance SPSIINS SXI IST SVYA XSI
Biotechnology SPSIBI SXT BOT SVEA XST
Oil & Gas Exploration and Production SPSIOP SXO SWT SVOA XSO
Retail SPSIRE SXR RET SWLA SXR
OTHER SECTOR FUTURES CONTRACTS PHLX Semiconductor SOX SOX SOT SWOA XOS

For product codes and tickers for E-mini S&P Select Sector futures, view the FAQ.


9. How is the final settlement price determined?

The E-mini S&P Select Sector Industry futures and the PHLX Semiconductor Sector Index future settle the same way as the other equity index futures listed on our exchanges. On expiration day, typically the third Friday of the quarterly contract month, the expiring equity index futures will settle to the Special Opening Quotation (SOQ) of the respective underlying index, which is calculated with the official opening price of each constituent in the index. The same methodology is used for the E-mini S&P 500 and other popular U.S. equity index futures.


10. What are the margin requirements for additional E-mini Sector Index futures?

The margin requirements below are in line with other equity index futures listed at CME Group exchanges. Note that CME Clearing may change the collateral requirements without advance notice.

  MARGIN MARGIN AS PERCENT OF NOTIONAL VALUE APPROXIMATE LEVERAGE RATIO  
Additional E-MINI Sector FUTURES CONTRACTS INITIAL MAINTENANCE INITIAL MAINTENANCE OR HEDGE INITIAL MAINTENANCE OR HEDGE FUTURES PRICE MULTIPLIER NOTIONAL VALUE
E-mini PHLX Semiconductor Sector Index futures $5,900 $5,900 8% 8% 12.6 12.6 $2,970 25 $74,250
E-mini S&P Biotechnology Select Industry futures $6,100 $6,100 9% 9% 11.8 11.8 $7,175 10 $71,750
E-mini S&P Insurance Select Industry futures $4,600 $4,600 5% 5% 18.8 18.8 $3,452 25 $86,300
E-mini S&P Oil & Gas Exploration & Production Select Industry futures $12,950 $12,950 10% 10% 9.6 9.6 $4,965 25 $124,125
E-mini S&P Retail Select Industry futures $5,700 $5,700 8% 8% 12.3 12.3 $7,021 10 $70,210
E-mini S&P Regional Banks Select Industry futures $6,200 $6,200 6% 6% 16.2 16.2 $2,010 50 $100,500

Learn more about margin requirements here


References

  1. Source CME data and data up to 17 June 2022.

Equity Index Sector Futures

Explanation, features and benefits of E-mini S&P Select Sector Index Futures offered for trading at CME Group.


All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

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