International derivatives market The CME Group announced today that it will issue options on S&P 500 Annual Dividend Index futures on January 29, pending regulatory review.
“Client demand to manage risk and seek investment opportunities around dividend exposure has accelerated the growth of listed and centrally cleared dividend futures,” said Paul Woolman, Global Head of Equity Products at CME Group. “Based on the success of the S&P 500 annual dividend index futures, which saw more than 900,000 contracts traded in 2023, we are pleased to introduce these new options to provide market participants with even greater flexibility to adjust their their dividend-related strategies’.
These new options contracts are the latest addition to CME Group’s suite of dividend futures, which includes S&P 500 annual and quarterly dividend index futures, Nasdaq-100 annual dividend index futures and futures on Russell 2000 annual dividend index.
“As the world’s leading index provider, S&P DJI is pleased to enhance its ongoing partnership with CME Group as it expands its offering of free contracts linked to S&P DJI’s established and highly liquid S&P 500 ecosystem,” said Tim Brennan, Head of Capital Markets at S&P Dow Jones Indices. “By providing the underlying view of US dividend trends through the S&P 500 Dividend Points Index (Annual), combined with CME Group’s financial products, market participants can track and express their views on an important of stock returns”.