CME to Launch New ESG Index Futures

    Stockholm (NordSIP) – The Chicago Mercantile Exchange (CME) Group, will launch the E-mini S&P Europe 350 ESG Index futures, a targeted risk management tool aligned with ESG values that builds on the company’s successful E-mini S&P 500 ESG Index futures contract. The new product will be available for trading from May 24, pending regulatory review.

    “Interest in ESG strategies continues to increase as financial institutions incorporate sustainable investing objectives into their trading strategies,” said Tim McCourt (Pictured), CME Group Global Head of Equity Index and Alternative Investment Products. “Futures products can be an important part of the solution. This latest addition to our ESG offerings will allow market participants in this region to gain exposure to a European index based on a robust ESG methodology – all to meet their risk management needs.”

    Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products

    “Nordic investors have been notable as early adopters of ESG derivatives and have been particularly active in CME’s E-mini S&P 500 ESG futures since they were launched. We would expect Nordic investors to have similar levels of interest in the E-mini S&P Europe 350 ESG future,” McCourt told NordSIP.

    “S&P Dow Jones Indices is proud to be a part of the CME Group’s launch of E-Mini futures based on our S&P Europe 350 ESG Index. We are excited that the ecosystem of financial products linked to our ESG indices is growing and diversifying as more investors incorporate sustainability targets in their strategies,” said Reid Steadman, Global Head of ESG at S&P Dow Jones Indices. “CME Group’s E-mini S&P Europe 350 ESG Index Futures complements the successful launch in the U.S. in 2019 of E-Mini futures tied to our S&P 500 ESG Index, enabling us to bring ESG principles to a broader group of global market participants.”

    The S&P Europe 350 ESG Index is a broad-based, market-cap weighted index designed to measure the performance of securities meeting sustainability criteria while maintaining similar overall industry group weights as the S&P Europe 350. This index incorporates S&P DJI ESG Scoring.

    Portrait courtesy of CME Group

    Featured Image by Matt Griffin via Wikimedia Commons

    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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