CME Group and FutureSports to Launch Futures on Sports Indexes | LeapRate
CME Group said it has partnered with FutureSports to introduce what the companies described as the world’s first futures on sports indexes, in a long-term deal that will see the exchange operator list futures and options on FutureSports Performance Indexes.
The cash-settled contracts will be based on officially reported, league-approved statistical outcomes and FutureSports’ index methodology.
CME Group said the first monthly and quarterly futures will begin trading this summer, pending regulatory review, offering hedging and risk transfer tools for the sports ecosystem alongside new trading opportunities for institutions and individuals.
“CME Group is where the world comes to manage risk, and that’s exactly what we’re bringing to the business of sports leagues,” commented CME Group Chairman and Chief Executive Officer Terry Duffy. “This isn’t just a new product – it’s about bringing real price discovery and risk management discipline to an industry that’s ready for it.”
FutureSports Co-Founder Leigh Taylforth said the company was seeing strong demand for the contracts as hedging instruments from participants including stadium operators, sports sponsors, insurers, apparel manufacturers and broadcasters, describing CME Group as the ideal venue for instruments tied to a $650 billion global industry.
The indexes are administered by FutureSports, with methodologies designed to align with the International Organization of Securities Commissions principles for financial benchmarks. The leagues serve as official data sources but do not participate in index determination or governance.
Bob Fitzimmons, executive vice president at Wedbush Securities, said the indexes open the business of global sports to capital markets, turning it into a tradable financial asset.
