CME Group to launch E-mini IPOX 100 U.S. Index Futures in March

UNITED STATES February 18 2016 7:06 PM     

CHICAGO (Scrap Register): CME  Grouphas announced the launch of E-mini IPOX 100 U.S. Index Futures. The futures  contract will be available for trading on the CME Globex electronic trading  platform effective March 7, 2016, pending all relevant regulatory review  periods. This contract will be listed with and subject to the rules and  regulations of Chicago Mercantile Exchange.

The new contract is designed  to allow traders to capture the return dynamics of U.S. initial public offerings  (IPOs) and corporate spin-offs, thereby providing the opportunity to trade on  growth and innovation in the U.S. IPO market.

“The IPO and spin-off  sector as a whole is a unique, highly dynamic and diverse equity group," said  Tim McCourt, CME Group Global Head of Equity Products. "We're pleased to  collaborate with IPOX to launch this new futures contract, which gives our  clients greater precision to meet their global trading and risk management  needs.”

“An IPO can have distinctive effects on the development of a  company which go far beyond just a few months,” said Josef Schuster, Founder and  CEO of IPOX Schuster LLC. “That is why we specialize in financial product design  related to global IPOs and corporate spin-offs, and we are excited to work with  CME Group to bring this futures product to market.”

IPOX Schuster LLC  developed the IPOX 100 U.S., the underlying Index for the futures product. The  contract size is $10 multiplied by IPOX 100 U.S. Index and is cash settled in  USD based on the special opening quotation of the IPOX U.S. Index.