Equity Index Sector futures and options
Manage sector exposure in liquid, capital-efficient futures and options format on key indices from S&P, Dow Jones and Nasdaq.
Get capital-efficient exposure
Enjoy potential margin offsets with other Equity Index futures, low tracking error, zero management fees and actionable SOQ settlement at expiration.
Easily express your view
Go long or short in sector exposure without the constraint of security or single-stock-based short sale regulations.
Add versatility
Use Sector futures or options for spreading, sector rotation, portfolio overlays and cash equitization opportunities.
Get capital-efficient exposure to 19 sectors
Fine-tune your equity index sector exposure with our suite of Sector contracts, including E-mini S&P Select Sector, E-mini S&P Select Industry, Dow Jones Real Estate, E-mini Nasdaq Biotech and PHLX Semiconductor Sector Index futures.
Equity Index Sector futures and options are efficient tools you can use to increase or decrease exposure to particular segments or industries of the broader equity market. Learn about the key features of these contracts.
What’s new? Our product suite now offers Sector options on futures, providing greater trading choice and flexibility to capture equity sector exposure. These seven new options contracts will allow capital-efficient trading of Sector futures and options in one marketplace. View the FAQ to learn more.
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Potential tax advantages and margin offsets
*Not intended as tax advice. Please consult your tax advisor and/or FCM for more information.
Multiple product applications
Sector futures and options products
View our suite of Sector futures and options, designed for managing sector-related risk.
*Please consult your tax advisor and/or FCM for more information.
Flexible execution, greater liquidity access
In addition to the CME Globex electronic central limit order book, you have a choice of ways to find the liquidity you need to efficiently transact Sector futures orders of size.
Block trades
Block trades are privately negotiated futures, options, or combination transactions that are permitted to be executed apart from the auction market.
EFPs
Exchange for Physical (EFP) block trades allow market participants to sell stock and buy it back for future delivery by buying Single Stock futures (SSF), or by buying the stock and selling the SSF.
BTIC block trades
Basis Trade at Index Close (BTIC) block trades enable market participants to execute a transaction as a basis trade relative to the official close for the underlying index.
Derived block trades
A derived block is a block trade in which the price and quantity of the trade depends on hedging transactions in an eligible related market. Now available.
Maximize capital efficiency with Sector futures and options
Sector futures and options are powerful, capital-efficient tools for market participants seeking equity sector exposure.
Use case: E-mini Energy Select Sector futures (XAE)
Here are potential capital efficiencies available:
- Initial margin on a long position in E-mini Energy Select Sector futures is currently approximately 7%.
- An OTC sector swap under ISDA SIMM margin requirements (UMR) currently has 19% initial margin, so futures offer 12% capital savings.
- The equivalent ETF is fully funded, so futures offer 93% capital savings.
- Some fully funded investors may choose to hold stocks in a margin account, but that would require a minimum of 50%. In this scenario, futures offer 43% capital savings.
- There is a 55% margin offset between E-mini Energy Select Sector futures (XAE)and E-mini Industrial Select Sector futures (XAI) and a 70% margin offset with E-mini S&P 500 futures (ES) (in 2:1 ratio).
Get started
Find out more about capital efficiencies on Sector futures and use CME CORE to examine hypothetical or real portfolios.
1 Margin requirements are indicative and subject to change; 2 With options launched into SPAN and futures launched into SPAN 2, the offsets between futures and options will initially be computed by Cross Model offset (CMO) until both options and futures are margined under SPAN2; 3 ISDA SIMM Methodology; 4 Capital efficiency and listed derivatives take center stage for final UMR phases
Equity Index tools for your trading strategy
Explore our industry-leading tools to gain insights that inform the way you trade.
CME Direct users: Download the Sector futures and options grid
Access Sector futures and options grids to facilitate fast spread and outright trading with block ticker displays and customizable real-time block trade data.
- Right click on the buttons below
- Save the files as an .XML on your computer
- In CME Direct, select import view in the main menu
- Import the grid into CME Direct
Equity Index futures insights
Dive into some of the many ways you can use Sector futures to achieve your objectives.
Managing sector rotation with derived blocks
See how derived blocks can provide greater liquidity and new opportunities for large-sized trading strategies when markets experience sector rotation.
Target Portfolio Exposure with Equity Sector Futures
Explore how market participants can use the CME Group suite of Equity Sector futures to target portfolio exposure and capture sector price movements.
Spread Trading Sector Index Futures
Learn about using Select Sector futures for spread trading in different market sectors.
Using Sectors to Identify Opportunities Beneath the Benchmark Index Level
Read how CME Group's suite of Select Sector futures can provide effective risk management and help identify new opportunities.
Courses
Learn more about our products and how they help manage risk
The courses below can help you quickly understand the market for Equity Index sectors and start trading.
Contact an Equity Index expert
Connect with a member of our Equity Index products team for more information about Sector futures and options.
