CME plans to launch futures linked to sports events as a new hedging tool

July 29th, according to a report by Zhitong Finance, CME Group is planning to launch futures and options contracts linked to professional and college sports events. The company is collaborating with emerging index provider FutureSports, whose products will provide the underlying support for these new CME instruments. The statement indicated that the initial sports futures contracts will be cash-settled, with monthly and quarterly expirations, and could begin trading as early as this summer, pending regulatory approval. CME CEO Terry Duffy stated in the announcement, "This is not just a new product, but an introduction of true price discovery and risk management standards to an industry that is in dire need of transformation." Futures contracts are common in global financial markets, with underlying assets including stock indices and commodities. If approved, this would be a first for the sports industry.