CHICAGO, April 2, 2025 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced plans to launch Spot-Quoted futures on June 30, pending regulatory review. Spot-Quoted futures will allow investors to trade futures positions in spot-market terms – i.e., the price quoted on screen on financial media and investment sites. Contracts will be available for the two leading cryptocurrencies, bitcoin and ether, as well as across the four major U.S. equity indices, including the S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average. In addition, investors will be able to hold these contracts for up to five years – without needing to roll – making a long-term position easier to hold than ever. CME says the spot-quoted futures contracts share similar features to those of perpetual contracts but offer greater precision and market accessibility. How Spot-Quoted futures work When a trader negotiates an SQF trade, it will be priced at the spot price, or index, level. This means the price that traders see on-screen (CNBC, Yahoo, etc.) is the index level that will be quoted – and ultimately traded – in Spot-Quoted futures. Given the product is a futures contract, a total financing component is required. In SQFs, this is known as the total financing adjustment. How to price a Spot-Quoted futures contract The combination of these two components becomes the cleared futures price: Spot-equivalent Price + Total Financing Adjustment = Cleared SQF Position Price It's important to note: If a trader holds their position overnight (or more than one clearing cycle), the change in the total financing adjustment will impact profit and loss (PnL) Spot-Quoted futures are listed on and subject to the rules of CME and CBOT. For more information on these products, please visit: https://www.cmegroup.com/markets/equities/spot-quoted-futures.html FAQ with contract specs Intro to Spot-Quoted futures SQF Fact card https://www.cmegroup.com/media-room...quotedfuturesprovidinginnovativenewtradi.html
Are there adavantages for long term holders to choose these new futures intead of SPX EFT's ? I assume spot futures emaluate the index much more aqqurate and risk free versus EFT's ? As well, EFT's charge annual management fees, futures I suppose don't cost anything to hold ?