CME Group Adds Communications to Suite of E-mini S&P Select Sector futures - The Industry Spread

Ricardo Esteves

Ricardo Esteves has seen business and economics through many lenses. He joined the Financial Services Industry in 2009, and has been a financial journalist since 2011. He holds a degree in Business Administration and has experience producing real-time news, from both buy-side and sell-side, as well as for retail traders, brokers and service providers. Esteves' work has appeared in a variety of online publications including FX Street and FinanceFeeds.

CME Group

CME Group Adds Communications to Suite of E-mini S&P Select Sector futures

August 14, 2018
Tim McCourt, CME Group Global Head of Equity Index Products and Alternative Investments
Tim McCourt, CME Group Global Head of Equity Index Products and Alternative Investments

CME Group, one of the world’s largest derivatives marketplace, has announced the expansion of its suite of E-mini S&P Select Sector futures with the addition of a new Communication Services Select Sector futures contract available for trading starting September 10, 2018, subject to regulatory approval.

Tim McCourt, CME Group Global Head of Equity Index Products and Alternative Investments, commented:

“We are pleased to offer our customers precise exposure to the rapidly-changing communications sector through our suite of E-mini S&P Select Sector Index futures. We continue to see strong market demand for liquid, cost-effective and capital-efficient tools to track the same underlying indices as the most popular ETFs.”

Boasting an average market cap of $97.2 billion, as of Aug. 8, 2018, the underlying index will consist of 26 companies, including AT&T, Verizon, Facebook, Netflix, Google, and Disney.

CME Group customers will be provided with a fee waiver for Basis Trade at Index Close (BTIC) transactions related to the new Communication Services Select Sector futures product. The fee waiver will help clients rebalance exposure between this new sector and existing Select Sector Index futures.

The company’s E-mini S&P Select Sector futures current offering includes products in the fields of technology, healthcare, utilities, consumer staples, finance, consumer discretionary, energy, materials, industrial and real estate.

Select Sector futures traded more than 12,000 contracts per day in Q2 2018, which represents an increase of 71 percent YoY compared to the approximately 7000 contracts in the second quarter of 2017.

The S&P Dow Jones Indices and MSCI have a planned revision of its Global Industry Classification Standard (GICS®) sectors of information technology, consumer discretionary and telecommunications on Sept. 21, 2018.

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