Industry News

E-mini and E-micro S&P CNX Nifty futures will launch July 19

May 26, 2010

(Taken from www.cmegroup.com)

Scheduled to Launch Monday, July 19, 2010
CME Group has partnered with The National Stock Exchange of India (NSE) and Standard & Poor’s to offer trading institutions two smart new ways to take part in the dynamic opportunities of the Indian stock market. E-mini and E-micro S&P CNX Nifty futures (Nifty 50 futures) are scheduled to begin trading on Monday, July 19, 2010.

The contracts will be listed and traded on the CME Globex platform, providing nearly round-the-clock trading access. Trading hours will be Monday-Friday, 3:30 p.m. – 3:15 p.m. the next day (except Friday, which closes at 3:15 p.m.) with a trading halt Sundays-Thursdays from 9:30-10:30 p.m. CDT (8:30 p.m.-9:30 p.m. CST) coinciding with the hour prior to the NSE open.

Cross-Listing Arrangement
On March 10, 2010, CME Group and NSE announced cross-listing arrangements that Include license agreements covering benchmark indexes for U.S. and Indian equities. The agreement provides CME Group with rights to create and list U.S. dollar-denominated futures contracts for trading on CME, while providing NSE with rights to create and (subject to the regulatory approval) list Rupee-denominated futures contracts on the S&P 500 and Dow Jones Industrial Average (DJIA) for trading on NSE.

Press release on cross-listing arrangement
E-mini and E-micro S&P CNX Nifty futures overview

Benefits
Access.
Benefit from simplified handling of regulatory, currency and time zone differences with these contracts.

Efficiency.
Trade using your existing front-end and clearing relationships to gain exposure to the opportunities of the Indian market as well as other leading equity markets around the world. No new development is required, and you can benefit from operational and margin efficiencies.

Strategic Opportunities.
Combine with other benchmark index contracts to express views on the direction of India’s market vs. the U.S. stock market (E-mini S&P 500 futures), vs. a broader view of world’s emerging markets (E-mini MSCI Emerging Markets futures) or to capitalize on arbitrage opportunities from short-term price differences vs. the SGX futures contract on the S&P CNX Nifty Index. You also can trade the contracts outright to hedge your risk from existing exposure to the Indian stock market.

Choice.
Enhances a portfolio of tradable U.S. and international index contracts available on CME Globex, with a choice of contracts in two sizes to fit a variety of trading needs.

Security.
Capitalize on the safety and security of our proven central counterparty clearing model, greatly reducing your counterparty risk.

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