CME Group is set to launch options on S&P 500 Annual Dividend Index futures on 29 January, pending regulatory review.
These new options contracts are the latest addition to the robust dividend futures suite at CME Group, which includes S&P 500 Annual and Quarterly Dividend Index futures, Nasdaq-100 Annual Dividend Index futures, and Russell 2000 Annual Dividend Index futures.
Paul Woolman, global head of equity products at CME Group, said: “Client demand for managing risk and seeking investment opportunities around dividend exposure has accelerated the growth of our listed and centrally cleared dividend futures. Based on the success of our S&P 500 Annual Dividend Index futures, which traded more than 900,000 contracts in 2023, we are pleased to introduce these new options contracts to provide market participants with even greater flexibility to customise their dividend-related strategies.”
Tim Brennan, head of capital markets at S&P Dow Jones Indices, said: “As the world’s leading index provider, S&P DJI is pleased to strengthen its ongoing collaboration with CME Group as it expands its offering of complimentary contracts tied to S&P DJI’s established and highly liquid S&P 500 ecosystem. By providing the underlying view into U.S. dividend trends through our S&P 500 Dividend Points Index (Annual), coupled with CME Group’s financial products, market participants can track and express their views on an important component of equity returns.”
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