http://cmegroup.mediaroom.com/2015-...eading-Index-Derivatives?pagetemplate=article - CME launching futures on the Russell 1000, Russell 1000 Growth and Russell 1000 Value, FTSE 100, FTSE Emerging Market, FTSE Developed Europe and FTSE China 50 indexes by the end of Q4 2015 - Russell 2000 futures will be traded at CME beginning Q3 2017 Aug 3, 2015 CHICAGO and LONDON, Aug. 3, 2015 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, and FTSE Russell, a leading global index provider, announced that they have entered into a licensing agreement establishing CME Group as a global partner for futures, options on futures and OTC cleared products on FTSE Russell. "We're pleased to partner with FTSE Russell to help investors around the globe better manage equity index exposure," said CME Group Executive Chairman and President Terry Duffy. "Together, we will provide market participants with the capital efficiencies of trading multiple indexes on one platform and through a single clearing house." "We are delighted to have signed an agreement with CME Group to develop a range of equity index futures products in the United States, based on FTSE Russell's key benchmarks," said FTSE Russell Chief Executive Officer Mark Makepeace. "With more than $10 trillion of assets under management benchmarked to our indexes, this new partnership recognizes our growing position both in the domestic US market and globally. We look forward to working with CME Group to provide investors with access to some of the most actively traded indexes in the world." "Combining our strengths with those of FTSE Russell's offers an unparalleled opportunity for the global markets," said CME Group Chief Executive Officer Phupinder Gill. "Together, we are uniquely positioned to drive more efficient, inventive and robust solutions for our clients across global equity benchmarks." CME Group will launch futures on the Russell 1000, Russell 1000 Growth and Russell 1000 Value, FTSE 100, FTSE Emerging Markets, FTSE Developed Europe and FTSE China 50 indexes by the end of Q4 2015. Russell 2000 futures will be listed by and subject to the rules of CME beginning Q3 2017. [...] SOURCE CME Group For further information: CME Group: Media: Alex Gorbokon, +1-312-930-3193 or Michael Shore, +1-312-930-2363, news@cmegroup.com, www.cmegroup.mediaroom.com or Investors: John Peschier, +1-312-930-8491 or FTSE Russell: Media: Lucie Holloway, +44 20 7797 1222 or Tim Benedict, +1 646 398 4528, newsroom@lseg.com
Couple thoughts: 1. Focus on your core products and try to do those well. 2. What's up with exchanges constantly trying to poach each other's products when it rarely works out? Volume doesn't just get up and move. 3. We already have Russell and FTSE A50 futures. Unless volume decides to get up and move to CME, they're going to create these futures which just end up tracking the real futures elsewhere for their respective products.
CME is the 800 pound gorilla. They have a ton of products that have always been on the drawing board. Sometimes it is just a matter of timing. They have marketing road shows just like investment bankers. If the product fails to gain support, they put it back in the stable. At least that's how it was years ago. Now they have the financing and clout to keep any product running. The CME owns all the important products. Except for the VIX Futures which is owned by an equally powerful exchange that dominates in another industry.
Well ICE has Brent, various softs, a few indexes (Russell, FTSE), some CDS and emissions stuff, but yes CME arguably has more of the big names. The thing is, we probably do not want one exchange to have a monopoly on everything, particularly CME. I'm a believer in diversity and competition (but not dysfunctional fragmentation like that of the equities markets).
(I had to retract a statement.) Monopoly IS good for this business. Clout for adoption (ie exchange settled Swaps). The OTC market is HUGE and only CME can pull it off (imho). Chicago could eclipse NY if this was to happen. Additionally, It provides a good incubator for new products. I sure don't like their market data fees. As if they had to charge it.... I do agree about the fragmented stock options business. Makes my head spin. The various forms of pools.... etc.
I knew, at the time many Russell 2000 scalpers when it traded on the CME many years ago. When it moved over to ICE, for whatever reason they didn’t follow. I only made a few trades on it myself, but from what I remember, it was really “jumpy” and I think most scalpers loved that. As for the rest, time will tell how the volume turns out. The last big CME product launch I remember (due to personal interest) was the Yen-based Nikkei options – to date not a single contract traded. If they can launch FOPs on the FTSE China 50 future in short time that might bring some volume over from the SGX, which for some reason (possibly Chinese regulators) can’t get it launched themselves. I can’t speak for the ICE trading platform, but GLOBEX is better than the SGX in the few categories, most to do with native spread orders.
Bit of a tangent. Check out the bio of the current CEO, Phupinder Gill. He started as a clerk. This guy rose up through the "club" culture of the CME through sheer talent. I would hear praises from mailroom folks about how he was revolutionizing the clearing department which was very underrated (maybe even hated by people doing outrades) in those pre-internet days. If Tom Cruise was to do a movie about Exchanges, this would be the guy. Well, there's Leo Melamed , too.
I believe they can. But haven't for reasons I cannot fathom. Internally, they are structured very similar to an Investment bank. Research and Marketing are tied to the hip. On the same floor, sometimes swapping staff. The knowhow is deep. And, the CME has been instrumental in the structuring and launch of numerous international exchanges. Given the cross-margining agreements that they have and SPAN adoption, they can easily incubate these products using US speculator/hedger activity.
BTW I totally missed this the first time around but this is actually not a competing listing. This is a transition of TF to CME in 2017. http://www.reuters.com/article/2015/08/03/cme-lse-ice-idUSL1N10E2JZ20150803
Didn't the TF trade on the CME to begin with? Why does it keep getting passed back and forth between exchanges?