The Chicago Mercantile Exchange (CME) is planning to launch a new futures contract based on the S&P Asia 50 Index, a Pan-Asia equity index that tracks the 50 largest stocks traded in Hong Kong, Korea, Singapore and Taiwan.
The new CME S&P Asia 50 futures contract is expected to launch in the first quarter of 2006 exclusively on the CME Globex electronic trading platform. It will be geared toward investors hedging financial risks associated with movements in the region's equity markets.
"Since its introduction in 2003, the S&P Asia 50 has been a favorite with issuers of financial products because it is an effective measure of equity performance in four Asian economic powerhouses - Hong Kong, Korea, Singapore and Taiwan," says Robert Shakotko, managing director of Standard & Poor's index services. "This new CME futures contract is sure to reinforce this trend, particularly in Asia and Europe, as well as streamline hedging strategies for pan-Asian equity portfolios."
Adds Craig Donohue, CME chief executive officer, "CME is expanding its global reach and market share beyond US borders through a number of fronts, all designed to attract new non-US market participants to our products. Given the continued growth in Asia, market participants are increasingly seeking investment and hedging opportunities in the Far East. By providing the first stock index futures contract covering major companies located in Asian financial centres, the new CME S&P Asia 50 futures will provide a needed tool to invest and hedge stock movements of Asian companies."
