The Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) have embarked on a joint venture to introduce single-stock futures for institutional pension funds, retail investors and the public.
The Chicago Board of Trade (CBOT) has also agreed to participate in the venture with a limited stake.
Chicago’s exchange legislation has announced August 21 as the date for the commencement of principle-to-principle trading of the single-stock futures.
According to CME’s director and head of equity products, Rick Redding, the legislation could imply trading between institutional funds via clearing members such as CBOE and CME or trading between clearing member accounts. The single-stock futures will be made available to the public by December 21.
The joint venture will have its own management and board, and will be separately organised as a regulated exchange.
Single-stock futures will be traded electronically, and orders may be entered through both the new CBOEdirectTM electronic platform and CME’s GLOBEX 2 electronic trading system.
By Janet Du Chenne
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.