CBOE Futures Exchange is to list futures contracts on the Russell 1000 Index (ticker symbol RS) and the mini-Russell 2000 Index (ticker symbol RM) which are expected to begin trading on Friday, 4 February 2005, pending final regulatory approval. CFE, which launched on 26 March 2004, is a new, all-electronic, futures exchange.
Futures contracts on the full-size Russell 1000 Index and the mini-size Russell 2000 Index will trade electronically at CFE, via CBOE direct, the exchange’s screen-based trading system. The two Russell indexes join three other products currently trading at CFE: futures on the CBOE Volatility Index (VIX), the CBOE S&P 500 Three-Month Variance futures and futures on the CBOE China Index. The selection process for the Designated Primary Market Maker (DPM) for both the Russell 1000 and Russell 2000 Index futures is underway and is expected to be announced soon.
The Russell 1000 Indexes are designed to measure the performance of the top 1,000 companies from a universe of the 3,000 largest stocks in the U.S. The Russell 2000 Index is designed to measure the performance of the bottom 2,000 companies from a universe of the 3,000 largest stocks in the U.S.
“CFE continues to gain traction in the marketplace, evidenced by our increasing number of market participants, expanding product set, and open interest that now stands at over 10,000 contracts,” says Patrick Fay, Managing Director, CBOE Futures Exchange. “We are excited to offer futures on Russell indexes and expect to introduce additional new investment vehicles in 2005, many of which will be unique product offerings currently unavailable in the futures industry.”
“We are proud that the world’s newest futures exchange has decided to list products based on Russell’s benchmark US stock indexes,” adds Kelly Haughton, strategic director for Russell indexes. “Trading index futures products via the CFE’s all-electronic platform is a winning combination that ensures increased exposure and further growth in liquidity and volume among these products.”
The newly formed CFE is a wholly-owned subsidiary of Chicago Board Options Exchange, Incorporated, offering an all-electronic, open access market model, with traders providing liquidity and making markets. CFE trades are cleared by the triple-A rated Options Clearing Corporation (OCC). The CBOE Futures Exchange is regulated by the Commodity Futures Trading Commission (CFTC).