CME launches near-round-the-clock single-stock futures trading
Cue Writer
CME Group has introduced cash-settled single-stock futures tied to 55 U.S. equities, opening a new route for traders to take positions on names including SpaceX, Micron Technology, Nvidia, Tesla and Apple, according to CNBC.
The contracts trade on CME’s Globex platform from Sunday evening through Friday afternoon, interrupted by a one-hour daily maintenance break. CME also launched micro-sized contracts on 22 names; standard contracts represent 100 shares and micro contracts represent 10 shares.
The exchange said the products are intended to offer a more straightforward way to express bullish or bearish views than options. They are traded on margin, are cash settled at expiration using the underlying stock’s official closing price, and do not confer company ownership.
The extended trading window could give investors a way to react to earnings and other market-moving developments outside regular U.S. stock-market hours. It also brings a futures-based alternative into a market where retail demand for longer trading access has been growing.
For market participants in the U.S. Virgin Islands and elsewhere, the launch is a reminder that easier access to leveraged products can increase both flexibility and risk. Futures can amplify gains and losses, so investors should understand contract terms, margin requirements and settlement mechanics before trading.
Source: CNBC