Updated
Updated · Seeking Alpha · Jul 26
CME Group Launches Single-Stock Futures for 50+ U.S. Companies
Updated
Updated · Seeking Alpha · Jul 26

CME Group Launches Single-Stock Futures for 50+ U.S. Companies

3 articles · Updated · Seeking Alpha · Jul 26

Summary

  • Monday’s launch will let investors trade cash-settled single-stock futures tied to more than 50 major U.S. companies, expanding CME Group’s equity derivatives lineup.
  • The contracts are designed to provide leveraged exposure without requiring traders to buy the underlying shares or use options.
  • Each future will track the stock’s closing price and settle in cash, avoiding physical share delivery.
  • The rollout gives investors another listed instrument for taking directional bets on individual U.S. stocks through the futures market.

Insights

Why did this leveraged trading tool vanish in 2020, and what makes CME confident it will survive today?
How will brokers navigate the complex maze of joint SEC and CFTC regulations to offer these new contracts?
With no Greeks or borrow fees, could these new futures completely replace traditional options for active day traders?