CME Group is planning to launch futures and options tied to professional and college sports events, according to a statement carried by Odaily. The exchange is working with emerging index provider FutureSports, whose products would serve as the underlying basis for the planned contracts.
The first sports futures contracts would be cash-settled and listed with monthly and quarterly expiries. If regulators approve the launch, trading could begin as early as this summer. CME said the products are being designed as a new hedging tool for the sports sector.
CME Chief Executive Officer Terry Duffy said in the statement that the effort is not just about adding another product, but about bringing genuine price discovery and risk management standards to an industry he described as in need of change. Futures contracts are widely used across global financial markets, including in stock indexes and commodities. If approved, the proposed listing would mark a first for the sports industry.
CME Group is planning to launch futures and options contracts tied to professional and college sports events, according to a statement cited by Odaily.
The company is working with emerging index provider FutureSports, whose products would provide the underlying basis for the new instruments.
CME said the first sports futures contracts would be cash-settled and carry monthly and quarterly expiries. Subject to regulatory approval, the contracts could begin trading as early as this summer.
In the statement, CME Chief Executive Officer Terry Duffy said: "This is not just a new product, but an effort to bring real price discovery and risk management standards to an industry that is in urgent need of change."
Futures contracts are common across global financial markets, with underlying assets that include stock indexes and commodities. If approved, the offering would be the first of its kind for the sports industry.
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