CME FSPI Sports Indexes Product Overview

The CME FSPI Sports Indexes and futures enable market participants to trade sports team performance dynamically and hedge financial risks tied to game-day outcomes.

Understanding the CME FSPI Sports Indexes and futures

• Universal baseline: Every sports team begins each season at a standardized baseline value of 7,500.
• Dynamic index movement: Real-time in-game statistical events adjust the index score up or down based on sport-specific metrics. Positive plays (e.g., scoring drives, saves, blocks) increase the value, while negative plays (e.g., goals allowed, penalties) draw it down.
• Playoff multiplier: Post-season plays carry a 1.5x multiplier to reflect the heightened impact of playoff performance.
• Index vs. futures price: The underlying index tracks cumulative real-time performance, whereas the futures price represents market expectations of anticipated team performance.

Contract sizes and risk management

• Standard: Features a 10x multiplier tailored for institutional hedging and large-scale exposure.
• Micro: Features a 0.1x multiplier to provide accessible, granular exposure to broader market participants.
• Listing cadence: Four weekly contracts are available continuously to support flexible trading windows ranging from weekly to full-season horizons.
• Operational hedging: Enables local vendors, parking operators, stadium-area businesses and advertisers to hedge business losses caused by team underperformance.

Sample futures calculation

• Expected pricing: A team with a 7,500 baseline expected to average 50 points across 14 monthly games generates an October futures price of 8,200 points ($7,500 + (50 x 14)).
• Actual convergence: If the team underperforms and averages 30 points per game, the index settles at 7,920.
• Short position settlement: A short position on one Micro contract produces a profit of $28.00, calculated as:
  • Profit = (8,200 - 7,920) x 0.1 = 28.00