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.