International derivatives marketplace CME Group today announced plans to launch options on six E-mini Select Sector futures, as well as on Dow Jones U.S. Real Estate Index futures, on October 28, pending regulatory review.
“These new options on our liquid sector futures are designed to help clients manage volatility in individual equity sectors, particularly amid significant dispersion across sectors this year,” said Paul Woolman, Global Head of Equity Index Products at CME Group. “In addition to our existing suite of sector products, these options will provide added flexibility and capital efficiencies that market participants rely on to increase or decrease exposure to various segments of the broader equity market. In today’s market, not only does index choice matter, but sector choice matters as well.”
Options will be available on the following futures contracts:
- E-mini S&P Select Sector Stock Energy Index futures
- E-mini S&P Select Sector Stock Financial Index futures
- E-mini S&P Select Sector Stock Health Care Index futures
- E-mini S&P Select Sector Stock Industrial Index futures
- E-mini S&P Select Sector Stock Technology Index futures
- E-mini S&P Select Sector Stock Utilities Index futures
- Dow Jones U.S. Real Estate Index futures
“Through its longstanding collaboration with CME Group, S&P Dow Jones Indices is expanding the utilization of its indices in global financial markets, serving as essential building blocks to support a healthy and liquid ecosystem of products that are tracking its trusted benchmarks,” said Tim Brennan, Global Head of Capital Markets at S&P Dow Jones Indices. “The S&P Select Sector indices, along with the Dow Jones U.S. Real Estate Index, enables traders, investors, and other market participants to focus on more targeted market segments as they look to mitigate risks, navigate volatility, and express their views on specific sectors against the broader market.”
CME Group’s existing Sector futures product suite, which includes the E-mini Select Sectors Index futures, E-mini Dow Jones Real Estate Index futures and E-mini Nasdaq Biotech Index futures, have been growing significantly over the last few years, with 2024-to date average daily volume at a record 21,000 contracts and open interest at a record 267,000 contracts.
