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

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 these new CME instruments. The statement noted that the first batch of sports futures contracts will be cash-settled, with monthly and quarterly expirations. Subject to regulatory approval, they could begin trading as early as this summer.

CME CEO Terry Duffy said in the statement: "This is not just a new product; it is about introducing real price discovery mechanisms and risk management norms to an industry in dire need of change." Futures contracts are common in global financial markets, with underlying assets including stock indices and commodities. If approved, this would be the first of its kind in the sports industry. (Jinshi)