CME plans to launch futures linked to sports 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 these new CME instruments. The statement noted that the initial 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 change." Futures contracts, whose underlying assets include stock indices and commodities, are common in global financial markets. If approved, this would be a first in the sports industry. (Jin Shi)