The new CME S&P Asia 50 futures contract is expected to launch in the first quarter of 2006 exclusively on the CME(R) Globex(R) electronic trading platform. This contract is designed specifically to help investors hedge financial risks associated with movements in the region's equity markets. It is also the first contract to be launched by CME since it agreed last month to extend and expand its existing exclusive licensing agreement with Standard & Poor's through 2016, with another non-exclusive year in 2017.
"As a result of CME and Standard & Poor's long and successful alliance, since 1982 when we launched our full-size CME S&P 500 futures contract, today more than 90 percent of all U.S. equity index derivatives trading takes place at our exchange," said CME Chairman Terry Duffy. "We are pleased to again partner with Standard & Poor's to further extend our international focus with the introduction of this new product serving the Asian region."
"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," said 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."
"CME is expanding its global reach and market share beyond U.S. borders through a number of fronts, all designed to attract new non-U.S. market participants to our products," said Craig Donohue, CME Chief Executive Officer. "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 centers, the new CME S&P Asia 50 futures will provide a needed tool to invest and hedge stock movements of Asian companies."
The S&P Asia 50 is a large cap, free float adjusted index. Constituents are selected on the basis of size, liquidity, sector and country representation.
| Country | Number of Companies in the S&P Asia 50 Index | Percentage Weight in the S&P Asia 50 Index |
| Hong Kong | 19 | 32.4% |
| Korea | 10 | 32.6% |
| Singapore | 8 | 10.5% |
| Taiwan | 13 | 24.5% |
For more information on this product, please visit http://www.cme.com/spasia50 .
About CME
Chicago Mercantile Exchange Inc. ( http://www.cme.com ) is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on the CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.6 billion per day in settlement payments in the first half of 2005 and managed $43.7 billion in collateral deposits at June 30, 2005, including $4.0 billion in deposits for non-CME products. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, Nasdaq: CME).
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With approximately 6,300 employees located in 20 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com .
