CME Group to introduce event-based contracts designed for retail investors

International derivatives marketplace CME Group is introducing event-based contracts designed for the retail audience that will make it easier for everyone to trade their views on daily up or down price moves in some of the world’s most widely quoted benchmark futures markets, including gold, oil, equity indices and foreign currencies.

These new daily options on futures contracts will offer short-term trading opportunities for individuals seeking to take a position on daily price moves using smaller-value trades of up to $20 per contract.

Individuals will be able to trade their view on whether the price of key futures markets will move up or down by the end of each day’s trading session, beginning with gold, silver, copper, crude oil, natural gas, E-mini S&P 500, E-mini Nasdaq-100, E-mini Dow Jones Industrial Average, E-mini Russell 2000 and euro-U.S. dollar foreign exchange. Each event-based contract will be fully collateralized, with limited risk, meaning investors can choose their maximum profit or loss at the time of the trade.

“Retail investors have become increasingly savvy about their investment decisions and are actively seeking hands-on trading opportunities in new markets,” said Terry Duffy, CME Group Chairman and Chief Executive Officer. “Our new event-based contracts will provide this dynamic retail investing crowd a simpler, lower-cost way to participate in some of the world’s most recognized markets – many of which they interact with every day.”

Subject to relevant regulatory reviews, event-based contracts from CME Group are expected to launch in Q3 2022.

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