CME Group to Expand S&P Index Contract


Notice from CME today:
quote:
Available August 19

ENHANCED E-mini S&P SmallCap 600 futures
NEW S&P SmallCap 600 futures
NEW E-mini S&P MidCap 400 options on futures

In response to customer demand, CME Group is expanding our global equity index product line to provide more efficient, tradable ways for our customers to express views on the essential small- and mid-cap U.S. equity market segments.

Premiere Small-Cap Trading Opportunities

On August 19, the multiplier will be reduced to $100 for the existing S&P SmallCap 600 futures contract. This contract, which trades electronically under the ticker symbol SMC, will also be re-named the E-mini S&P SmallCap 600.

We will also simultaneously launch a new floor-traded futures contract known as the S&P SmallCap 600, ticker symbol SMP. This contract will have a multiplier of $500 and will be traded on the floor during regular trading hours and on CME Globex after hours.

Both of these products will allow you to quickly and easily trade what is fast becoming the preferred U.S. small-cap index. Both contracts offer:

  • Superior index methodology designed to offer an efficient portfolio of investable, financially viable small-cap companies that deliver historically better small-cap performance
  • Waived fees for CME Clearing, CME Globex and block trading (floor-traded and electronic) through March 2008
  • Low correlation to S&P 500 index, making it well-suited for diversification and other cross-sector trading strategies

Greater Flexibility and Access to the Mid-Cap Market

On August 19, we will also launch E-mini S&P MidCap 400 options on the CME Globex platform - a welcome addition to the already fast-growing E-mini options line. With this product, you have greater flexibility to trade the attractive mid-cap market, which has the best YTD total return among the U.S. equity sectors. Designed to limit downside risk and maximize upside potential, this product offers:
  • Efficiency, enabling you to quickly and efficiently take action on your view of the U.S. mid-cap stock market's direction using the leading indicator of mid-cap performance.
  • Around the clock, around the world trading on the CME Globex platform, featuring execution speed, reliability, transparency and anonymity.
  • Low correlation to the S&P 500 index, making it well-suited for diversification and other cross-sector trading strategies

Good info. It will be interesting to see how the CME Group recovers from the Russell being bought by ICE. Looks like they may be starting their strategy now. I like trading the ER, but I really don't want to have to pay for another data feed. I know, it's a business etc, but it still chaps my butt. Guess I'm just cheap.
We had an interesting conversation about that when the announcement first came out: ER2 moving from CME to ICE. I agree that this is definitely a move to try and fill that gap and provide an ER2 alternative on the CME.