CME Group, an international derivatives marketplace, has announced today that it will launch options on its Micro E-mini Nasdaq-100 and Micro E-mini S&P 500 futures contracts. This launch has been scheduled to be available on the 31st of August, 2020, and is dependent on regulatory review, as well.

A Useful Tool All-Round

Tim McCourt stands as the Global Head of Equity Index and Alternative Investment Products of the CME Group and gave comment about the matter at large. McCourt explained that the Micro E-mini Equity futures contracts had been introduced just a year ago. Even so, he assured that the market participants from across the spectrum have managed to benefit from it, using it to scale their exposure to the equity index up or down. They can do this in a bid to hedge their existing portfolio positions in a more precise way.

Responding To Great Reception

McCourt stated that the micro-sized equity futures contracts had experienced a very high level of success, and customers themselves have started to increase their demand. As such, McCourt proudly announced that they would start the offering of options on these Micro E-mini Nasdaq-100 and Micro E-mini S&P 500 futures contracts. It’s the opinion of CME Group, McCourt stated, that this will help the exchange’s clients, and allow them levels of greater flexibility. This, McCourt says, is a very important thing to have as the world’s economy at large is seeing these levels of uncertainty due to global events.

Since the Micro E-mini Equity futures had launched back in May of 2019, the offering had developed into a strong and liquid underlying futures market. One of the highlights of these things, is that 300 million cumulative contracts are trading across the board. This includes the Dow Jones Industrial Average, the S&P 500, the Nasdaq 100, as well as the Russel 2000. Of these, 153.4 million Micro E-mini contracts come from S&P 500, and 106.2 million of these Micro E-mini futures contracts come from the Nasdaq-100

Terms And Conditions Still Apply

Furthermore, 1.67 million contracts were traded across all four products on a daily average, when one zeros in on June of 2020. 28% of this trading volume had originated outside of the US since its launch. Lastly, more than a staggering 160,000 unique accounts have traded in these contracts since its launch, standing as a testament to its popularity.

As a matter of ticking all the boxes, the options listed on both the Micro E-mini futures for Nasdaq-100 and S&P 500 will be subject to the rules of the CME, and will be listed as such.