CME Group plans to expand its suite of weekly options expiries for its Micro E-mini Nasdaq-100 and S&P 500 futures.
The world’s leading derivatives marketplace will launch Monday, Tuesday, Wednesday, and Thursday Weekly options on February 13, pending regulatory review. The new weekly options contracts will complement the existing Friday Weeklies, End-of-Month, and Quarterly options on Micro E-mini Nasdaq-100 and S&P 500 futures.
“Micro E-mini Equity Index futures and options have become among the most actively traded equity index products at CME Group, achieving a combined record volume increase in 2022 of more than 50% year-over-year,” Paul Woolman, executive director of equity products at CME Group, said. “As demand for additional short-dated equity options continues to grow, we are building on our longstanding partnership with Nasdaq and S&P Dow Jones Indices to allow our clients to take advantage of our deeply liquid underlying futures markets to hedge or trade with enhanced flexibility and precision.”
Interest and trading activity around Micro E-mini Nasdaq-100 and S&P 500 options continues to grow as more than 6.6 million combined contracts have been traded to date.
“Nasdaq is excited to enhance our partnership with CME Group and provide access to the world’s most innovative companies via the Nasdaq-100,” Cameron Lilja, vice president and global head of index product and operations at Nasdaq, said. “The Nasdaq-100 represents one of the world’s preeminent large-cap growth indexes, and the expansion of our suite of options supports the investment community with more versatile tools as investors look to manage risk and meet investment objectives.”
The expansion of these weekly options builds on the deep liquidity established in Micro E-mini Nasdaq-100 and S&P 500 futures. Both had record average daily volume (ADV) in 2022, with 1,453,985 contracts for Micro E-Mini Nasdaq-100 and 1,370,415 contracts for Micro E-Mini S&P 500.
“S&P Dow Jones Indices is committed to strengthening market transparency through the utilization and liquid ecosystem of its independent and rules-based indices such as the S&P 500,” Tim Brennan, head of Capital Markets at S&P Dow Jones Indices, said. “By CME Group offering additional expirations based on this iconic and historic benchmark, market participants will have more index-related insights on risks, returns, and opportunities in the U.S. equity markets.”