Cash-settled contracts tied to professional and college sports indexes from FutureSports would expire monthly and quarterly, pending regulatory approval.
CME said it plans to introduce futures and options linked to professional and college sports events in partnership with index provider FutureSports, marking what it described as a first for the sports industry if approved. The cash-settled contracts would be based on sports-related indexes, expire on monthly and quarterly cycles, and could begin trading as early as this summer, subject to regulatory approval. The proposal would extend event-linked derivatives into sports, using exchange-traded contracts that settle in cash rather than through delivery of an underlying asset.