CME plans to launch futures linked to sporting events as a new hedging tool

Odaily Odaily Planet Daily News The Chicago Mercantile Exchange (CME) is planning to launch futures and options contracts linked to professional and college sports events. The company is partnering with emerging index provider FutureSports, whose products will provide the underlying support for CME's new instruments. The statement notes that the first batch of sports futures contracts will be cash-settled, with monthly and quarterly expirations, and could begin trading as early as this summer, pending regulatory approval.

CME CEO Terry Duffy said in a statement: "This is more than just a new product; it is about introducing true price discovery and risk management standards to an industry in dire need of transformation." Futures contracts are common in global financial markets, with underlying assets including stock indices and commodities. If approved, this would be a first for the sports industry. (Jin Shi)