CHICAGO, April 12, 2017 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced that starting July 10, 2017, CME Group will launch both futures and options based on the Russell 2000Â® Index, as well as basis trade at index close (BTIC) functionality on the futures contracts, pending regulatory approval.
The full list of new contracts available to trade follows:
- E-miniÂ® Russell 2000Â® Index Futures
- Options on E-miniÂ® Russell 2000Â® Index Futures
- Weekly Options on E-miniÂ® Russell 2000Â® Index Futures
- Options on E-miniÂ® Russell 2000Â® Index Futures - End-of-Month
- E-miniÂ® Russell 2000Â® Growth Index Futures
- E-miniÂ® Russell 2000Â® Value Index Futures
"We're pleased to bring the Russell 2000Â® index back to CME Group where traders will now be able to access major equity indices on a single platform," said Tim McCourt, CME Group's Global Head of Equities. "Offering these new products at CME Group will provide our customers a more cost-effective opportunity for global exposure using futures and options, with margin offsets of up to 70 percent against the S&P 500, Nasdaq and Dow Jones indices."
The Russell 2000Â® Index is the standard recognized benchmark measuring the performance of the small-cap segment of the U.S. stock market. With the growing popularity of passive investing, indexing data has become more valuable for investors. In August 2015, CME Group and London Stock Exchange Group announced a partnership to list derivatives contracts based on Russell indexes.
"We are excited to continue providing robust liquidity in Russell 2000Â® options as they transition to CME Group's platform," said Frank Bednarz, Global Co-Head of Trading, CTC Trading Group, L.L.C. "These are powerful tools for investors seeking to manage risk in the important small-cap segment."
"Equity Index futures and options are among the top products traded by our futures clients," said Dan Ryba, Vice President of Futures Brokerage at E*TRADE. "We look forward to CME Group offering the Russell 2000Â® futures and options, which further complements their equity offering."
"As a trader, having the Russell 2000Â® at CME Group provides me with cost efficiencies and greater flexibility to trade against other index products like the Dow and S&P," said professional trader Morad Askar of FuturesTrader71.com. "I'm glad to see it will be trading on CME Group in July and look forward to trading the contract."
CME Group's new Russell 2000Â® Index futures and options products are an efficient hedge to cash index options, with the choice of flexible execution through BTIC. Through greater certainty and precision, and enhanced flexibility, BTIC trades can mitigate jump risk and reestablish equity index exposure.
E-miniÂ® Russell 2000Â® Index futures and options, E-miniÂ® Russell 2000Â® Growth Index futures and E-miniÂ® Russell 2000Â® Value Index futures will be listed by and subject to the rules and regulations of the Chicago Mercantile Exchange. For more information, please visit www.cmegroup.com/russell2000.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. Through its exchanges, CME Group offers the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. CME Group provides electronic trading globally on its CME Globex platform. The company also offers clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives through its clearinghouses CME Clearing and CME Clearing Europe. CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT, Chicago Board of Trade, KCBT and Kansas City Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. Russell 2000Â® is a trademark and service mark of the Frank Russell Company, used under license. All other trademarks are the property of their respective owners.
SOURCE CME Group