The new indices are comprised of four to six companies in key economic sectors, including Commercial Banking, Computer Networks, Computer Software, Drug Companies, Gold Mining, Pharmacies, and Semiconductor Circuits. These products augment the eight narrow-based indices OneChicago previously announced on Airlines, Biotech, Computer Hardware, Defense, Investment Banking, Oil Services, Retail, and Semiconductor Components.
OneChicago Chairman and Chief Executive Officer, William J. Rainer, said, "Given the current market environment, brokers, fund managers, and other potential users of security futures have expressed increasing interest in sector-oriented trading strategies. Many of our customers have told us of their need for products that provide exposure to the performance of specific industries, and OneChicago narrow-based indices provide a capital-efficient vehicle for meeting this need."
Using OneChicago narrow-based indices, market participants may increase or decrease portfolio weightings in a focused industry sector with a single trade execution. The products may be used independently or in conjunction with single stock futures and broad-based equity indices to attain tailored market positions.
At launch, OneChicago will list over 80 single stock futures in addition to futures contracts on narrow-based indices. Trading at OneChicago will be entirely electronic.
OneChicago, LLC, is the joint venture created to trade single stock futures and narrow-based stock indices by Chicago Mercantile Exchange Inc. (CME), Chicago Board Options Exchange® (CBOE®), and Chicago Board of Trade (CBOT®). For additional information about OneChicago and its products, access the OneChicago Web site at www.onechicago.com
