CME Group is gearing up to roll out new futures and options tied to the performance stats of professional and college sports teams and athletes. This move comes through a collaboration with FutureSports, an index provider that transforms official sports statistics into benchmark indices.
The first contracts, known as FutureSports Performance Index futures, may start trading as soon as this summer, pending regulatory approval. These contracts will be cash settled and offer monthly and quarterly expirations, with more details expected shortly.
How these new sports futures differ
Unlike simple binary bets on wins or losses, the CME contracts will track continuously priced indexes derived from a wide range of team and athlete statistics. This approach offers market participants more nuanced ways to trade or hedge, especially those financially linked to sports. Potential users include stadium operators, sponsors, insurers, apparel makers, and broadcasters whose revenue depends on team and player performance.
FutureSports will independently oversee the indexes using publicly available governance and methodologies aligned with global financial benchmark standards. While sports leagues will supply the official data, they will have no role in setting index values or methodology rules. FutureSports is also working on partnerships with professional leagues to back the initial products with reliable data.
This initiative marks CME's expansion beyond traditional institutional derivatives. Previously, CME teamed up with FanDuel to offer event contracts on sports outcomes and other asset classes. The partnership with FutureSports focuses on converting detailed sports statistics into financial benchmarks that can be traded with classic futures and options.
This content is for informational purposes and does not constitute financial advice.
