CME Woos Retail Traders with Event Contract Launch
Posted by Colin Lambert. Last updated: September 20, 2022
CME Group has officially launched event contracts on benchmark products, first unveiled in June 2022.
The contracts, effectively binary options – which have been banned in parts of Europe as gambling contracts – allow users to trade their view on whether the price of key futures markets will move up or down by the end of each day’s trading session. Contracts covered include EUR/USD FX futures, gold, silver, copper, crude oil, natural gas and a range of equity index “mini” contracts.
Participants are able to know their maximum profit or loss when entering a trade, less commissions and fees, each event contract is sized at $20 per contract.
“We continue to see increasing demand from retail investors looking for less-complex ways to gain exposure to and participate in CME Group benchmark products – some of the world’s most widely quoted futures markets,” says Tim McCourt, global head of equity and FX products at CME Group. “Our event contracts will provide market users with innovative, lower-cost ways to trade across oil, gold, equity indices and foreign currencies.”
The interest from retail investors is highlighted by a host of brokers stepping up to support the new contracts. “We’ve seen growing demand on the retail side and are excited to have closely collaborated with CME Group on the launch of event contracts,” says Ryan Moroney, CEO of CQG. “The exchange has a long history of launching innovative products, and just as its E-mini and micro contracts have taken off with market participants, we expect the products to attract significant attention as a new way to engage with many of the most popular benchmark products that reflect different aspects of the economy.”
NinjaTrader Group CEO Martin Franchi, adds, “CME Group’s event contracts will have tremendous appeal to individual investors, whether they are already active traders or new entrants to the market. We look forward to playing a major role in helping grow the base of participants not only in event contracts but in the futures and financial markets overall.”