CME to Roll Out Event-Based Futures Contracts
Posted by Colin Lambert. Last updated: March 15, 2022
In an attempt to further build its retail trader base, CME Group, which has had good success with a series of micro futures contracts, is planning an event-based contract, specifically designed for retail traders.
The daily options, which are expected to launch in the third quarter of this year, will offer retail investors the ability to trade daily moves in EUR/USD, gold, silver, copper, crude oil and natural gas, as well as a range of stock indices. Contract size will be a maximum of $20 and each contract will be fully collateralised, with limited risk, meaning traders can choose their maximum profit or loss at the time of the trade.
“Retail investors have become increasingly savvy about their investment decisions and are actively seeking hands-on trading opportunities in new markets,” says Terry Duffy, CME Group chairman and CEO. “Our new event-based contracts will provide this dynamic retail investing crowd a simpler, lower-cost way to participate in some of the world’s most recognised markets – many of which they interact with every day.”