CHICAGO - CME Group, a leading derivatives marketplace, has announced the upcoming launch of options on S&P 500 Annual Dividend Index futures, set for January 29, subject to regulatory approval. This expansion follows the trading of over 900,000 contracts in the S&P 500 Annual Dividend Index futures during 2023.
The introduction of these options is in response to growing client interest in tools for managing dividend exposure and crafting investment strategies. Paul Woolman, CME Group's (NASDAQ:CME) Global Head of Equity Products, highlighted the success of their dividend futures and the new options' role in offering market participants enhanced flexibility.
In collaboration with S&P Dow Jones Indices, the new options will provide insights into U.S. dividend trends via the S&P 500 Dividend Points Index (Annual). Tim Brennan, Head of Capital Markets at S&P Dow Jones Indices, expressed enthusiasm for the continued partnership and the benefits it brings to the market.
Market participants, including Belvedere Trading and Sunrise Brokers, have voiced their support for the new options, citing transparency in pricing and diversified product offerings as key advantages. These options are the latest addition to CME Group's dividend futures suite, which also includes Nasdaq-100 and Russell 2000 Annual Dividend Index futures.
CME Group's platforms facilitate a wide array of futures, options, cash, and over-the-counter markets, enabling clients to manage risk and seize trading opportunities. The company is also a prominent central counterparty clearing provider through CME Clearing.
The information for this article is based on a press release statement.
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