CME Group Expands Nikkei Futures Offerings, Boosts Japanese Equity Derivatives

CME Group Inc. CME planned the expansion of its Nikkei 225 futures offerings by introducing yen- and U.S. dollar-denominated Micro Nikkei futures on October 28, pending regulatory approval.

These new micro contracts, with contract sizes of 50 yen and $0.50, will allow traders to capture Japanese benchmark trading opportunities more precisely, enhancing CME Group’s current offerings of standard and E-mini Nikkei contracts.

Micro Nikkei futures will expand CME Group’s suite of micro equity futures contracts, which have traded over 2.9 billion contracts to date.

The recent trading highlights include 220 million cumulative Nikkei futures contracts traded since 2004, an average daily volume of 41,000 contracts year-to-date—up 9% year-over-year—and a year-to-date open interest of 67,000 contracts, reflecting a 2% increase year-over-year.

Paul Woolman, Global Head of Equity Index Products at CME Group, said, “The addition of micro-sized yen- and U.S. dollar-denominated Nikkei futures contracts will allow global market participants to gain efficient access to the broader Japanese stock market, while also mitigating FX exposure and allowing more granular trading capabilities.”

“Year-to-date, nearly 75% of trades in our Nikkei futures occurred outside of Tokyo cash hours, underscoring the need for around-the-clock liquidity for global market participants to manage their equity risk. Similar to their larger parent contacts, the smaller size futures contracts will also offer greater potential capital and margin efficiency.”

Last week, CME disclosed the expansion of its battery metals suite with the launch of a Spodumene CIF China (Fastmarkets) Futures contract set for October 28, 2024, pending regulatory approval.

Investors can gain exposure to the stock via The Advisors? Inner Circle Fund Cambiar Aggressive Value ETF CAMX and iShares U.S. Broker-Dealers & Securities Exchanges ETF IAI.

Also Read: CME Group Downgraded: Analyst Sees Cutthroat Competition From BGC Group, Cboe Global & Intercontinental Exchange

Price Action: CME shares are up 0.03% at $220.71 premarket at the last check Tuesday.

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