Can you recognize these stocks?
Following the creation of the Communications Services Sector in the Global Industry Classification Standard, they belong to a single top-level Sector within the S&P 500.
CME launched E-mini S&P Communication Services Select Sector futures - available for trading on September 10th, 2018 and on September 21st, these constituents will be removed from their current Select Sector Indexes through a routine index rebalancing.
The E-mini S&P Communication Services Select Sector futures contract provides investors an excellent way to gain exposure to this new index, which includes companies previously included in the Consumer Discretionary and Technology Select Sectors.
The addition of the Communication Services futures contract dials up the Select Sector futures number to 11.
It will be listed on the U.S. Equity Index futures cycle, with five concurrent futures contracts that expire against the opening index value on the third Friday of March, June, September and December.
Communication Services futures will be available to trade on CME Globex - Sunday evening through Friday afternoon, nearly 24 hours per day.
The contract size will be $250 dollars times the index value and the minimum price fluctuation, or tick increment, is .05 point zero five index points – which equates to twelve dollars and fifty cents $12.50 per tick.
Additionally, market participants can execute Communication Services Select Sectors futures through BTIC, Block Trades and are eligible for Exchange for Physical trades.
Margin offsets will also be available for those interested in trading or spreading against other index futures, including other Select Sector futures contracts.
The Communication Services Select Sectors futures contract joins the existing Select Sectors futures contracts suite, allowing market participants an additional choice to express their opinion on Sector performance.