CME Group and FTSE Russell Extend Their Collaboration
Today, CME Group, a global leader in derivatives trading, has announced a significant 12-year extension of its licensing agreement with FTSE Russell, a prominent provider of indices worldwide. This partnership allows CME Group to continue offering an extensive range of futures and options on futures, along with OTC-cleared products that are based on various FTSE Russell indexes. The agreement is aimed at providing robust tools for market participants to effectively manage equity index exposure.
The Benefits of the Extended Licensing Agreement
Tim McCourt, the Global Head of Equities, FX and Alternative Products at CME Group, expressed enthusiasm about the extended partnership. He highlighted that over the years, their collaboration has grown remarkably, leading to enhanced liquidity and efficiency for clients trading in the equity space. This extension reinforces their mutual objective of delivering valuable solutions that cater to the needs of the global investment community.
Insights from FTSE Russell
Fiona Bassett, CEO of FTSE Russell, shared her excitement about the continued partnership. She emphasized the importance of their joint commitment to providing transparent index-based solutions. The growth in trading volumes associated with FTSE Russell-linked products showcases the lasting value these indices bring to investors aiming to track performance in the vast expanse of the global equity market.
The Range of Products Available
CME Group's offerings include a diverse array of futures on the Russell family indices such as Russell 1000, Russell 2000, and their respective growth and value variants. Moreover, they provide futures on FTSE indexes that cover emerging markets, developed European markets, and more. Since the inception of the previous license agreement in 2015, trading numbers have been impressive, with over 573 million contracts involving FTSE Russell indexes being exchanged.
Significant Volume Growth
Current figures indicate that the average daily trading volume in the Russell futures and options complex has reached 306,000 contracts this year alone, reflecting a healthy and thriving marketplace. This kind of trading activity highlights the increasing reliance on these instruments by market participants looking to capitalize on index movements.
About CME Group and Its Offerings
CME Group operates as a leading marketplace for derivatives, enabling clients to engage in a wide range of trading activities. The organization offers diverse trading solutions covering various asset classes including interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products, and metals. Utilizing the CME Globex platform, clients can efficiently trade futures and options across global markets while effectively managing risk.
Exploring the Future with FTSE Russell
FTSE Russell stands at the forefront of index provision, delivering innovative index analytics and solutions for investors across the globe. It manages thousands of indexes that provide benchmarks for evaluating markets and asset classes in over 70 countries, capturing an incredible 98% of the global investable market. With approximately $18.1 trillion being benchmarked to FTSE Russell indexes, it’s clear that extensive reliance is placed on their offerings.
High Standards in Index Design
FTSE Russell adheres to rigorous industry principles in index design and governance, utilizing a rules-based methodology guided by expert committees. Their emphasis on transparency, innovative practices, and partnerships with clients ensures that they remain a leader in the index domain while setting a high standard for the industry.
Frequently Asked Questions
What is the significance of the CME Group and FTSE Russell partnership?
The partnership allows CME Group to provide extensive derivatives products based on FTSE Russell indexes, enhancing tools for managing equity index exposure.
How long is the extension of the licensing agreement?
The licensing agreement has been extended for an additional 12 years between CME Group and FTSE Russell.
What types of products does CME Group offer related to FTSE Russell?
CME Group offers futures and options on various FTSE Russell indexes, including family indices like Russell 1000 and Russell 2000.
What are the recent trading volume statistics?
This year, the average daily volume across the Russell futures and options complex is reported at 306,000 contracts.
How much capital is benchmarked using FTSE Russell indexes?
Approximately $18.1 trillion in global assets are benchmarked against FTSE Russell indexes, showcasing their wide influence.
