CME Group to launch S&P 500 Dividend Index Futures

 UNITED STATES October 19 2015 9:23 AM

NEW YORK (Scrap Register): CME Group has announced the launch of S&P 500 Annual Dividend futures and S&P 500 Quarterly Dividend futures.

These new contracts will be available for customer trading as of November 16, 2015, pending certification of contract terms and conditions with the CFTC and completion of all regulatory review periods.

“We're pleased to offer customers an innovative new way to express views on S&P 500 dividend exposure,” said Tim McCourt, CME Group Executive Director and global head of equity index products. “The new contracts will complement our established and highly liquid suite of S&P 500 futures products, providing customers with tremendous flexibility of application.”

Dividend futures will be cash-settled by reference to values of the S&P 500® Annual Dividends Index and the S&P 500® Dividend Points Index determined on the third Friday of futures delivery month. These contracts will be available for trading electronically via CME Globex and will be listed by and subject to the rules of CME.

On the same day Dividend futures become available, CME Group will extend Basis Trade at Index Close (BTIC) functionality to E-mini S&P 500, E-mini Nasdaq 100 and E-mini Dow Jones ($5) futures.