Canadian derivatives venue Montreal Exchange, a subsidiary of Canadian exchange operator TMX Group, has launched a SXM Mini Futures contract on the S&P/TSX 60 Index.
The S&P/TSX 60 represents approximately 73% of Canada's equity market capitalisation, and is designed for investment managers who require a portfolio index of the large-cap market segment of the Canadian equity market.
The SXM Mini Futures contract represents one quarter of the value of the current S&P/TSX 60 Index Standard Futures contract, offering a smaller capital alternative that may be useful to smaller investors due to its lower notional size.
Trading of the SXM Mini Futures contract commences with the June 2011 contract (M11), with regular quarterly expiries subsequently. The contract trades during an early session from 06.00 to 09.15 ET. The contract is cash settled against the opening level of the underlying S&P/TSX 60 on the third Friday of the expiration month.
“The SXM contract was designed with retail investors in mind, and we are pleased to offer a new product geared towards this market segment,” said Alain Miquelon, president, Montreal Exchange.
TMX is currently involved in merger discussions with the London Stock Exchange Group (LSEG). Despite a counterbid from a consortium of Canadian banks under the name Maple Group Acquisition Corporation, the TMX board has stated it remains committed to the LSEG proposal.