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"We are very proud of our 10-year relationship with Russell, which has enabled investors to manage risk in and gain exposure to the Russell 2000 small-cap index," said CME Chairman Terry Duffy. "With the addition of the E-mini™ Russell 2000 in 2001, a broader spectrum of market participants is able to utilize this valuable market tool. Just last week, E-mini Russell 2000 futures single-day volume reached more than 10,000 contracts, and open interest surpassed 20,000 positions for the first time, reaching a record 21,322 yesterday."
"During the past few years, investors seeking to hedge in the small- and mid-cap arena have increasing turned to products such as the Russell 2000," said CME President and Chief Executive Officer Jim McNulty. "We have seen a correlating trend on the futures side as volume in CME's Russell 2000 futures has grown during this same time period."
"Russell is pleased with the steady growth in trading of Russell 2000 futures at CME," said Kelly Haughton, Strategic Director, Russell Indexes. "Investors with small cap portfolios benchmarked to the Russell 2000, which accounts for 97 percent of institutional small cap assets, have found the futures to be solid investment tools for managing their risk."
Average daily volume on the Russell 2000 in 2002 totaled 3,347 contracts, an increase of 18 percent from the previous year. Average daily volume in E-mini Russell 2000 futures, launched in October 2001, grew to 3,412 in 2002. The Russell 2000 measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately eight percent of the total market capitalization of the Russell 3000. As of the latest annual reconstitution of Russell indexes in June, 2002, the average market capitalization was approximately $490 million; the median market capitalization was approximately $395 million. The index had a total market capitalization range of approximately $1.3 billion to $128 million
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® around-the-clock electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moves an average of about $1.8 billion per day in settlement payments and manages $27.4 billion in collateral deposits. On Dec. 6, 2002, Chicago Mercantile Exchange Holdings Inc. (NYSE: CME) and its CME subsidiary became the first publicly traded U.S. financial exchange. For more information about Chicago Mercantile Exchange Holdings Inc. or about Chicago Mercantile Exchange's products and markets, visit the CME Web site at www.cme.com.
Frank Russell Company, a global leader in multi-manager investment services, provides investment products and services in more than 35 countries. Russell manages $70 billion in assets and advises clients worldwide representing US$1.8 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Singapore, Sydney, Auckland and Tokyo. For more information, go to www.russell.com.
