E-mini S&P Communication Services Select Sector Futures

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

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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.

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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

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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

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

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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

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• 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

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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.

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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

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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.  

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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.

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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.

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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.

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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:

Learn more about margins:

Margins FAQ
SPAN Methodology

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

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

Learn more about connecting to CME Globex

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

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