CME Group Inc. to Launch Single-Stock Futures to Provide Investors with Leveraged Exposure to Major US Companies
CME Group Inc. will launch single-stock futures on Monday, providing investors with a way to bet on more than 50 of the largest US companies without trading a single share. The contracts allow for leveraged exposure without the complexity of options, such as the Greeks, making them more accessible for retail traders. Tim McCourt, global head of equities, FX and alternative products at CME, stated that the tool aims to bring in new traders to the ecosystem. The exchange is targeting both retail and institutional investors, offering a way to manage risk and gain exposure to stocks where inventory is limited, such as SpaceX. While single-stock futures failed to gain traction in the US for nearly two decades, the administration announced that regulators lowered the minimum amount of money needed to trade them to help revive the market. Terry Duffy, Chairman and Chief Executive Officer of the exchange, noted that the market has evolved since the first launch in 2000. The new contracts will be available 23 hours a day, five days a week.