Derivatives marketplace CME Group today announced that starting July 10, 2017, CME Group will launch both futures and options based on the Russell 2000® 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-mini® Russell 2000® Index Futures
· Options on E-mini® Russell 2000® Index Futures
· Weekly Options on E-mini® Russell 2000® Index Futures
· Options on E-mini® Russell 2000® Index Futures - End-of-Month
· E-mini® Russell 2000® Growth Index Futures
· E-mini® Russell 2000® Value Index Futures
"We're pleased to bring the Russell 2000® 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 2000® 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 2000® 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 2000® futures and options, which further complements their equity offering."
"As a trader, having the Russell 2000® 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 2000® 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-mini® Russell 2000® Index futures and options, E-mini® Russell 2000® Growth Index futures and E-mini® Russell 2000® 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.