CME Group to Launch E-mini Nasdaq-100 Monday and Wednesday Weekly Options on April 12

Rhea-AI Summary

CME Group announced it will launch E-mini Nasdaq-100 Monday and Wednesday Weekly options on April 12, pending regulatory review. This expansion adds to the existing options suite, including Friday Weekly and Quarterly options. Tim McCourt, CME Group Global Head, stated that these new contracts respond to the increased demand for short-dated options, offering clients more flexibility to hedge or trade around significant market events. The new options will be European-style with a $20 multiplier, enhancing cost-effective tools for equity market exposure.

Positive

• Launch of Monday and Wednesday Weekly options responds to demand for short-dated options.
• Enhances flexibility for hedging and trading around economic announcements.
• Increases the suite of options available for E-mini Nasdaq-100 futures.

Negative

• None.

CHICAGO, March 16, 2021 /PRNewswire/ -- CME Group, the world's leading and most diverse derivatives marketplace, today announced it will expand its suite of E-mini Nasdaq-100 options with the launch of Monday and Wednesday Weekly options on April 12, pending regulatory review. These new options contracts will complement the existing Friday Weekly, End-of-Month and Quarterly options on E-mini Nasdaq-100 futures.

"The addition of Monday and Wednesday Weekly options builds on our longstanding partnership with Nasdaq, and directly responds to growing demand for more short-dated options on our deep, liquid underlying E-mini Nasdaq-100 futures," said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. "Weekly options provide our clients with added flexibility and precision to hedge or trade around economic announcements and other market-moving events. By expanding the number of expirations per week, we're providing market participants with more cost-effective tools for fine tuning their equity market exposure."

"The Nasdaq-100 index has been empowering investors for more than 20 years now to gain exposure to the world's most innovative companies," said Sean Wasserman, ‎Vice President and Global Head of Index & Advisor Solutions with Nasdaq. "Our work with CME Group expanding the availability of weekly options provides investors with more flexibility in managing risk."

Similar to their counterparts, these new weekly options will be European-style, with a 4 p.m. ET expiry on Mondays and Wednesdays. These contracts are E-mini sized option contracts with a $20 multiplier. E-mini Nasdaq-100 Monday and Wednesday Weekly options will be listed on and subject to the rules of CME.

For more information on E-mini Nasdaq-100 Weekly options, please see: www.cmegroup.com/nasdaqweeklyoptions.

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and, E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500 and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor's Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc.  All other trademarks are the property of their respective owners. 

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SOURCE CME Group

FAQ

What new options will CME Group launch on April 12, 2021?

CME Group will launch E-mini Nasdaq-100 Monday and Wednesday Weekly options on April 12, 2021.

How do the new options differ from existing options on E-mini Nasdaq-100 futures?

The new options will add Monday and Wednesday expirations to the existing Friday Weekly, End-of-Month, and Quarterly options.

What is the significance of the launch for investors?

The launch provides investors with more flexibility to hedge and trade around market-moving events.

What style are the new E-mini Nasdaq-100 options?

The new options will be European-style, expiring at 4 p.m. ET.

What multiplier will be used for the new weekly options?

The new E-mini Nasdaq-100 weekly options will have a $20 multiplier.