CME Group is set to launch options on S&P 500 annual dividend index futures on 29 January, subject to a regulatory review.
Tim Brennan
The move is set to provide an enhanced, more innovative and diversified offering for clients.
Tim Brennan, head of capital markets at S&P Dow Jones Indices (DJI), highlighted the key benefits of the collaboration: “By providing the underlying view into US dividend trends through our S&P 500 Dividend Points Index (Annual), coupled with CME Group’s financial products, market participants can track and express their views on an important component of equity returns.”
The new options contracts join previous additions to the dividend futures suite at CME Group, including: S&P 500 Annual and Quarterly Dividend Index futures, Nasdaq-100 Annual Dividend Index futures, and Russell 2000 Annual Dividend Index futures.
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Paul Woolman, global head of equity products at CME Group, said: “Client demand for managing risk and seeking investment opportunities around dividend exposure has accelerated the growth of our listed and centrally cleared dividend futures.
“Based on the success of our S&P 500 Annual Dividend Index futures, which traded more than 900,000 contracts in 2023, we are pleased to introduce these new options contracts to provide market participants with even greater flexibility to customise their dividend-related strategies.”