The Chicago Mercantile Exchange plans to launch single-stock futures products this summer.

The leading global derivatives market CME Group recently announced plans to launch individual stock futures products this summer, pending completion of regulatory approval. The new products will cover more than 50 top US stocks in the S&P 500 index, Nasdaq 100 index, and Russell 1000 index for futures trading, including Alphabet, Meta, Nvidia, and Tesla, all settled in cash, offering flexibility, capital efficiency, and precision. It is reported that CME Group's individual stock futures offer three main advantages compared to traditional stock trading and options tools: 1. Increased capital efficiency: The margin mechanism of futures contracts significantly reduces the capital required for positions, freeing up more liquidity compared to direct stock holding or call options. 2. Precise hedging: Investors can hedge against specific company stock price fluctuations, especially useful for event-driven risks such as earnings seasons and industry policy changes. 3. No physical delivery threshold: The cash settlement mechanism eliminates the need for investors to deal with the transfer of underlying stocks, particularly beneficial for cross-border capital and quantitative strategy execution. Tim McCourt, global head of equities and foreign exchange products at CME Group, commented, "These contracts will provide a more convenient and cost-effective way to express views on individual stock trends, allowing market participants to gain exposure or hedge potential price volatility risks without directly buying stocks."