CME Group and FTSE Russell Further Strengthen Their Partnership Until 2037

CME Group and FTSE Russell Strengthen Licensing Agreement

In a significant development for the derivatives market, CME Group, a leading global marketplace, and FTSE Russell, a premier provider of market indexes, have officially announced a 12-year extension of their exclusive licensing agreement. This partnership enables CME Group to continue offering an extensive range of futures, options on futures, and OTC-cleared products based on FTSE Russell's various indices until 2037.

The agreement aims to further empower market participants with robust tools for managing their equity index exposure, as stated by Tim McCourt, CME Group's Global Head of Equities, FX, and Alternative Products. This has been a decade-long relationship marked by substantial growth, and its continuation is poised to provide deeper liquidity and optimize capital efficiency for investors engaged in these derivative products.

FTSE Russell has been a cornerstone in providing index-based solutions to a global investor base. Fiona Bassett, CEO of FTSE Russell, expressed enthusiasm over the extension, highlighting the mutual commitment of both entities to deliver transparent and effective index solutions. The ongoing trading volumes of FTSE Russell-linked products validate the strength and reliability of their indexes, which are crucial for investors aiming to assess market performance.

History of the Partnership

Since the initial licensing agreement emerged in 2015, trading activity has surged exponentially, with over 573 million FTSE Russell index-related futures and options contracts exchanged to date. Recently, the average daily trading volume for Russell futures and options has been impressive, averaging around 306,000 contracts.

This venture has allowed CME Group to offer a variety of futures products on popular indices such as the Russell 1000 and Russell 2000, alongside growth and value variants, as well as several critical FTSE indices including the FTSE Emerging Market and FTSE China 50. Given the breadth of offerings, the agreement aims to cater to an expansive spectrum of global investors.

Future Outlook

With the derivatives market continually evolving, both CME Group and FTSE Russell are well-positioned to leverage their partnership for future innovations in index-based trading. The sustained increase in user demand for financial products linked to FTSE Russell's indexes positions the duo favourably in a competitive market, creating additional opportunities tailored to investors' diverse needs.

CME Group serves as a platform that allows clients worldwide to engage in products spanning across major asset classes including interest rates, equities, foreign exchange, and more. It also operates cutting-edge trading platforms like CME Globex, making it a pivotal player in global financial markets.

Looking ahead, both companies are committed to nurturing this partnership, enhancing index trading solutions to align with market advancements while adhering to the highest industry standards.

For additional insights and detailed information about access to FTSE Russell futures and options at CME Group, you can visit their dedicated market pages at CME Group's FTSE Section.

CME Group and FTSE Russell's extended collaboration heralds a promising future for investors navigating the complexities of global equity markets, underscoring their dedication to fostering liquidity, transparency, and innovative solutions in the investment landscape.