E-mini S&P Communication Services Select Sector Futures

Creation and Launch

1. When will E-mini S&P Communication Services Select Sector futures be listed for trading by CME?

CME will launch the E-mini S&P Communication Services Select Sector futures contract on September 10, 2018. It will join the other 10 Select Sector futures contracts currently trading at CME:

  • E-mini S&P Utilities Select Sector futures (1,846 YTD ADV, +33% vs. 2017)
  • E-mini S&P Health Care Select Sector futures (714 YTD ADV, -3% vs. 2017)
  • E-mini S&P Materials Select Sector futures (488 YTD ADV, +13% vs. 2017)
  • E-mini S&P Consumer Discretionary Select Sector futures (842 YTD ADV, +121% vs. 2017)
  • E-mini S&P Consumer Staples Select Sector futures (1,130 YTD ADV, +31% vs. 2017)
  • E-mini S&P Industrial Select Sector future (688 YTD ADV, +58% vs. 2017)
  • E-mini S&P Technology Select Sector futures (1,195 YTD ADV, +117% vs. 2017)
  • E-mini S&P Energy Select Sector futures (1,543 YTD ADV, +94% vs. 2017)
  • E-mini S&P Financial Select Sector futures (2,303 YTD ADV, +47% vs. 2017)
  • E-mini S&P Real Estate Select Sector futures (352 YTD ADV, +20% vs. 2017)

Data as of August 10, 2018

2. When is the official rebalancing of the indices?

The rebalancing of all Select Sector indices will take place after the close of business on September 21, 2018. View more information regarding the rebalancing here.

3. How is this new sector being created?

According to S&P Dow Jones and MSCI, “The Telecommunication Services Sector will be broadened and renamed Communication Services to include companies that facilitate communication and offer related content and information through various media.

The renamed Sector will include the existing telecommunication companies as well as companies selected from the Consumer Discretionary Sector currently classified under the Media Industry Group, such as Comcast Corp and Naspers Ltd. It will also include select companies from the Internet & Direct Marketing Retail Sub-Industry such as Netflix Inc and TripAdvisor Inc, along with certain companies currently classified in the Information Technology Sector, including Alphabet Inc and Facebook Inc.” 1

4. What sectors are affected by this change?

The Communication Services Index pulled companies from the Information Technology, Consumer Discretionary and Telecommunications indices.

  • 7 constituents from Information Technology
  • 16 constituents from Consumer Discretionary
  • 3 constituents from Telecommunication Services

5. What is the composition/methodology of the index?

Details about the methodology can be found on the Standard & Poor’s website at us.spindices.com

Product Details

6. What are E-mini S&P Communication Services Select Sector futures contract specifications?

E-mini S&P Communication Services Select Sector futures will be listed on the customary U.S. equity index futures cycle – there will be five concurrent futures that expire against the opening index value on the third Friday of March, June, September and December. The contract size will be $250 x the index, and the minimum tick increments will be:

Outright: 0.05 index points= $12.50
Calendar Spread & BTIC: 0.05 index points= $12.50

7. What are the product codes?

Select Sector Futures Contracts Underlying Index (Bloomberg) CME Globex CME BTIC Bloomberg Front Month Thomson Reuters Front Month
  Communication Services – Available September 10, 2018
E-mini S&P Communication Services Select Sector Futures IXCPR XAZ XZT XASA XAZc1
  Other Select Sector Futures 
E-mini S&P Consumer Discretionary Select Sector Futures IXY XAY XYT IXYA XAYc1
E-mini S&P Consumer Staples Select Sector Futures IXR XAP XPT IXRA XAPc1
E-mini S&P Energy Select Sector Futures IXE XAE XET IXPA XAEc1
E-mini S&P Financial Select Sector Futures IXM XAF XFT IXAA XAFc1
E-mini S&P Health Care Select Sector Futures IXV XAV XVT IXCA XAVc1
E-mini S&P Industrial Select Sector Futures IXI XAI XIT IXIA AIXc1
E-mini S&P Materials Select Sector Futures IXB XAB XBT IXDA XABc1
E-mini S&P Technology Select Sector Futures IXT XAK XKT IXTA XAKc1
E-mini S&P Utilities Select Sector Futures IXU XAU XUT IXSA XAUc1
E-mini S&P Real Estate Select Sector Futures IXRE XAR XRT XARA XATc1

8. What are the trading hours on CME Globex?

  • Outright: Sunday – Friday 6:00 p.m. – 5:00 p.m. ET with a trading halt from 4:15 p.m. – 4:30 p.m. ET
  • BTIC: Sunday – Friday 6:00 p.m. – 4:00 p.m. ET

9. Will Basis Trade at Index Close (BTIC) be available for trading on Globex?

Yes. Basis Trade at Index Close (BTIC) contracts on the E-mini S&P Communication Services Select Sector futures will be available for trading on CME Globex as well as via block trades starting on the launch date, September 10. This is consistent with the other 10 Select Sector futures currently listed for trading.

10. Are E-mini Communication Services Select Sector Futures eligible for block trading?

Yes, both for traditional block trades as well as BTIC block trades. BTIC block trades are a special block trading provision that was introduced on certain equity index futures and stands for Basis Trade at Index Close (BTIC).

BTIC block trade enable market participants to execute a futures transaction on the E-mini S&P Communication Services Select Sector contract relative to the official cash index closing value of the underlying index — in essence, a basis trade based on the close of the underlying index in the spot market that day. View a list of Block and BTIC liquidity providers.

Benefits of BTIC block trades include:

  • Enhanced flexibility to manage index exposure before the spot market closes
  • Control and convenience to privately negotiate a trade with a selected eligible counterparty
  • Risk management provided by CME Clearing

11. Are E-mini S&P Communication Services Select Sector futures EFP-eligible?

Yes.  All 11 E-mini S&P Select Sectors are eligible for Exchange For Related Position (EFRP) trades governed by CME Group Rule 538.  CME E-mini S&P Select Sector futures can be utilized in a privately negotiated Exchange For Physical (EFP) trade where the physical side can be, but is not limited to, the corresponding Select Sector SPDR ETF.  

Fee & Margin Details

12. Will CME Group introduce fee incentives for E-mini S&P Communication Services Select Sector futures?

Yes, beginning on launch and continuing through trade date September 28, 2018, CME will provide fee waivers to all market participants for BTIC transactions (block and CME Globex) of E-mini S&P Communication Services Select Sector futures.

13. What are the fees for E-mini S&P Communication Service Select Sector futures?

The S&P Communication Services Select Sector products will be part of the E-mini Equity Index futures and will follow the same fees as the other 10 Select Sectors currently listed for trading, according to the current CME Fee Schedule.

14. What are the margin requirements for E-mini S&P Communication Services futures?

The initial margin estimates for outright E-mini S&P Communication Services Select Sector futures contract are approximately $3,330 (~5 percent of the contract notional value) and $80 for the calendar spread. These are preliminary margin estimates as of August 14, 2018, and are subject to change.

15. What are the available margin credits for offsetting positions between the E-mini S&P Communication Services Select Sector futures and the other Select Sector futures, along with CME’s major U.S. benchmark index futures?

Margins and margin credits are based on current market conditions and, thus, are subject to change. Below are the margin credit estimates as of August 14, 2018:

E-mini S&P Communication Services Select Sector Margin offsets
  Broad Based Indices S&P Select Sectors
  ES ND NK N1 RTY YM XAB XAE XAF XAI XAK XAP XAR XAV XAY
XAZ 45% (2:1) 40% (2:1) 45% (2:1) 45% (2:1) 50% (1:1) 45% (1:1) 45% (1:1) 45% (1:1) 35% (1:1) 40% (1:1) 35% (1:1) 40% (1:1) 40% (1:2) 40% (1:1) 40% (2:1)

Learn more about margins:

Margins FAQ
SPAN Methodology

Additional Information

16. Will there be on-screen market makers for the E-mini Communication Services S&P Select Sector futures?

Yes, the new Select Sector futures contract has been added to the already implemented market maker program for the outright and BTIC contracts. 

17. How can I get access to CME Globex?

To access CME Globex, you must have a relationship with a CME Clearing Member Firm.

Learn more about connecting to CME Globex

18. Where can I find more information on CME Select Sector futures?

Visit  www.cmegroup.com/sectors for the latest information.