just now
January 09, 2024 - CME Group today announced plans to introduce options on S&P 500 Annual Dividend Index futures, with the launch date set for January 29, awaiting regulatory approval.
Paul Woolman, CME Group’s Global Head of Equity Products, commented, "Client demand for managing risk and seeking investment opportunities around dividend exposure has accelerated the growth of our listed and centrally cleared dividend futures. Based on the success of our S&P 500 Annual Dividend Index futures, which traded more than 900,000 contracts in 2023, we are pleased to introduce these new options contracts to provide market participants with even greater flexibility to customize their dividend-related strategies."
S&P Dow Jones Indices, which underpins the index, also expressed support for the new product. Tim Brennan, Head of Capital Markets at S&P Dow Jones Indices, stated, "As the world's leading index provider, S&P DJI is pleased to strengthen its ongoing collaboration with CME Group as it expands its offering of complimentary contracts tied to S&P DJI's established and highly liquid S&P 500 ecosystem. By providing the underlying view into U.S. dividend trends through our S&P 500 Dividend Points Index (Annual), coupled with CME Group's financial products, market participants can track and express their views on an important component of equity returns."
Megan Morgan, Head of Market Structure at Belvedere Trading, said: "We are pleased to partner with CME Group on their launch of options on S&P 500 Annual Dividend Index futures. Belvedere Trading prides itself on being a first mover in providing transparent pricing of innovative volatility products that help CME Group's customers across the globe manage their risk."
Michael Goodall, Head of Americas at Sunrise Brokers, commented on their participation, "Sunrise is thrilled to announce its participation in the launch of new CME Group options on S&P 500 Annual Dividend Index futures. With a wealth of experience in navigating the growth of dividend futures in our European business, Sunrise is excited to bring this expertise to the U.S. markets. The introduction of options on S&P 500 Annual Dividend Index futures is a strategic move that aligns with our commitment to providing innovative and diversified products to our clients."
These options contracts are a new component of CME Group's comprehensive dividend futures suite, which also includes S&P 500 Annual and Quarterly Dividend Index futures, Nasdaq-100 Annual Dividend Index futures, and Russell 2000 Annual Dividend Index futures.
For additional details, visit: www.cmegroup.com/dividendoptions.
