CME plans to launch futures tied to sporting events as a novel hedging tool

Odaily Odaily Planet Daily News: CME is planning to launch futures and options contracts tied to professional and college sporting events. The company is partnering with emerging index provider FutureSports, whose products will provide the underlying support for these new instruments. According to the statement, the first batch of sports futures contracts will be cash-settled, with monthly and quarterly expirations. Subject to regulatory approval, trading could potentially begin as early as this summer.

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