Strategic Partnership Extended
CME Group and Nasdaq have recently announced a significant extension of their licensing agreement. This ten-year extension ensures that CME Group will continue to hold exclusive rights to offer futures and options on futures based on the Nasdaq-100 and other Nasdaq indexes until 2039.
CME Group, renowned as the world's top derivatives marketplace, operates the largest equity index futures complex globally. On the other hand, Nasdaq stands out as a leading global provider of trading technology and market information. Their collaboration has long benefited market participants looking for efficient ways to manage risk and access robust financial products.
Seamless Access for Market Participants
Terry Duffy, the Chairman and CEO of CME Group, expressed excitement about this agreement. He noted, "Extending our exclusive licensing agreement with Nasdaq will ensure that global market participants continue to have seamless access to our deeply liquid Nasdaq futures and options. These products are among the most actively traded in the financial markets." This continual partnership over nearly three decades signifies a commitment to maintaining vital access for traders and investors.
This partnership supports trading environments where clients can efficiently manage their investments, particularly in the Nasdaq-100 Index, which reflects the performance of the largest non-financial companies listed on Nasdaq. This agreement further reinforces both organizations' mutual goal of providing high-quality benchmark products that facilitate reliable access to equity markets.
Growth of Nasdaq-100 Futures
The Nasdaq-100 futures market has seen remarkable growth since its inception in 1996. With the launch of E-mini Nasdaq-100 futures in 1999, CME Group has successfully introduced a contract type that stands as one of the most actively traded equity index futures in the world, with over 2.8 billion contracts exchanged to date.
In the aftermath of their previous licensing agreement in 2019, the average daily volume of Nasdaq-100 futures and options on futures has surged more than 100%. Recently, the yearly average daily volume for these contracts reached over 2.5 million contracts, reflecting a 22% increase compared to the previous year. Notably, Micro E-mini Nasdaq-100 futures have also seen substantial growth, with a 39% increase in quarterly average daily volume.
About CME Group
CME Group is the foremost derivatives marketplace globally, enabling clients from various sectors to trade futures, options, and analyze vast amounts of market data. CME Group's platforms offer a diverse range of benchmarks across all major asset classes, including interest rates, equity indexes, and commodities. Clients leverage these resources to optimize their portfolios and address risk management challenges effectively.
About Nasdaq
Nasdaq is a major global technology company that provides services to corporate clients, banks, brokers, and investment managers. It is dedicated to enhancing liquidity and transparency in the financial system through advanced technology and client-centric solutions. Nasdaq aspires to be at the forefront of technological innovation within global capital markets.
Frequently Asked Questions
What does the extension of the licensing agreement involve?
The extension involves CME Group maintaining exclusive rights to offer futures and options on Nasdaq indexes for another ten years, ensuring continued access for traders.
How has the trading volume of Nasdaq-100 futures changed?
The average daily volume of Nasdaq-100 futures has more than doubled since 2019, with year-to-date figures exceeding 2.5 million contracts.
What is the significance of the Nasdaq-100 Index?
The Nasdaq-100 Index reflects the performance of the largest non-financial companies on Nasdaq, serving as a benchmark for investors.
How can clients benefit from CME Group's offerings?
CME Group offers diverse trading options across multiple asset classes, allowing clients to effectively manage risk and exploit market opportunities.
Where can I learn more about Nasdaq's services?
For more details on Nasdaq's offerings and technology solutions, clients are encouraged to explore Nasdaq's official website.
