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Index IDEA: One year of E-mini Russell 2000 Index Futures at CME Group

FTSE Russell and CME Group recently celebrated a very important milestone—July 10, 2018 marked the one-year anniversary of when E-mini Russell 2000 Index Futures launched on CME.

And what a good year it has been for investors in Russell 2000 Index-based futures. US small-cap market performance, investor diversification and global reach contributed to new highs in investor interest. Average daily trading volume in E-mini Russell 2000 Index Futures, at 141,600 as of June 30, has steadily grown since moving to CME in July 2017, and open interest stands at nearly 602,000 contracts—levels of interest not seen since 2015.

Alec Young – managing director, global markets research, FTSE Russell

With many of 2018’s equity headwinds being international in nature, the Russell 2000 Index has outperformed the Russell 1000 Index due in large part to small caps’ lower international sales exposure. Being more domestic has insulated small caps from trade tensions, geopolitical worries and the earnings drag stemming from a stronger dollar. Being less global also gives small caps more exposure to several positive factors in the US, including tax reform, increasing deregulation and faster economic growth relative to weaker recoveries in Europe and Japan. All these tailwinds are helping drive faster profit growth for small caps relative to their blue-chip counterparts, helping fuel YTD leadership while tempering relative volatility for this asset class.”

Tim McCourt, CME Group managing director and global head of equity products and alternative investments:

“It has truly been an exciting year since CME Group welcomed home Russell 2000 Index-based futures. The growth in volume in the small cap sector has continued to play an important role in the US economic landscape. The success of E-mini Russell 2000 Index Futures is another milestone in our continued partnership with FTSE Russell. I look forward to many more years of working together so that we can continue to meet the risk management needs of our customers.”

Ron Bundy, managing director, FTSE Russell:

“The transition of Russell 2000 Index-based futures happened at the right time for investors. In the year since we moved to CME Group, we have seen volumes reach levels not seen since 2015 and a significant increase in breadth of contract users amid a renewed surge in investor interest in the US small cap asset class. We’d like to thank CME Group for their strong collaboration and partnership in recent years.”

For more information on the Russell 2000 Index and index-based derivatives from FTSE Russell, go to the FTSE Russell website.

 

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