CME Group (CME) has launched the first US dollar-denominated Ibovespa futures contracts. They are due to begin trading on 22 October 22 and are listed with, and subject to, the rules and regulations of the Chicago-based derivatives market.
"This cross-listing arrangement allows us to provide our core promise: ease of access as well as more ways to manage risk for our global customers," said Scot Warren, senior managing director, equity index products and services at CME Group. "This new cross-listing arrangement provides our customers with access to Brazil's key benchmark product. This initiative will allow our clients to improve their ability to manage market and counterparty credit-risk exposure across various asset classes."
The Ibovespa is a total-return index of 69 stocks traded on BM&F Bovespa, the Brazilian Stocks, Mercantile & Futures Exchange. The index is comprised of a theoretical portfolio of the stocks that have accounted for 80% of the volume traded in the last 12 months and been traded on at least 80% of the trading days.
CME Group, which recently announced plans to open a derivatives market in London next year for currency futures, is also planning to add foreign-exchange options as it seeks to continue expanding its services.
According to media reports, CME Europe will focus on bolstering volumes in all of its products to 5,000 to 10,000 contracts daily, to make the system appealing to traders.