CME plans to launch futures linked to sports events as a new type of hedging tool

According to Odaily, CME is planning to launch futures and options contracts linked to professional and collegiate sports events. The company is cooperating with emerging index provider FutureSports, whose products will provide the underlying support for these new CME instruments. The statement noted that the first sports futures contracts will be cash-settled and will expire on monthly and quarterly cycles. Pending regulatory approval, trading may begin as early as this summer.

CME CEO Terry Duffy stated in the announcement: “This is not just a new product, but aims to introduce a true price discovery mechanism and risk management standards to an industry in desperate need of reform.” Futures contracts are common in global financial markets, with underlying assets including stock indices and commodities. If approved, this will be the first such instance for the sports industry. (Golden Ten Data)