Magazine article Modern Trader

CME to Launch Security Futures Products

Magazine article Modern Trader

CME to Launch Security Futures Products

Article excerpt

TWO CHICAGO?

The CME will foray into the world of security futures products (SFPs) with plans for a June 6 launch of three futures contracts based on exchange traded funds (ETFs): the Nasdaq-100 Index Tracking Stock, the S&P 500 Depositary Receipts and Ishares Russell 2000. The CME has applied for a notice registration with the SEC, which is required for listing the hybrid SFPs that have been deemed both a futures and security.

A CME spokesperson says the CME is not competing against OneChicago, currently the only active exchange offering SFPs in the United States, which trades single stock futures and is a joint venture between the CME, the CBOT and the CBOE. She added there is no product overlap between the CME and OneChicago, though OneChicago lists one ETF future, the Dow Diamonds.

"It can't be a surprise because it was part of our operating agreement," says Craig Donohue, CME CEO. Nor does he believe it devalues OneChicago, which is eager for investors. …

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