CME launches single stock futures enabling investors to trade SpaceX, Micron 23 hours a day
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Investors who want to bet on stocks such as SpaceX And Micron Technology they now have a new tool: single-stock futures that trade nearly 24 hours a day.
CME Group on Monday launched cash-settled single-stock futures on 55 U.S. stocks, as well as micro-cap contracts on 22 names; This marks the exchange’s entry into a market designed to allow investors to take leveraged long or short positions around the clock.
Contracts are traded on CME’s Globex platform from Sunday evening through Friday afternoon, with a one-hour daily maintenance break, allowing investors to respond to earnings and other market-moving events outside of normal U.S. exchange hours.
This list includes SpaceX, one of Wall Street’s most closely followed IPOs, as well as futures tied to Micron Technology. Nvidia, Tesla’s And Apple. Standard contracts represent 100 shares of the underlying stock, while micro contracts represent 10 shares.
“Retail brokers called the launch the biggest retail growth catalyst of the year, with more than 35 retail partners aiming to be ready on day/week one,” Morgan Stanley analyst Michael Cyprys said in a note. he said.
CME said the products are designed to offer a simpler way than options to express bullish or bearish views. Unlike options, single stock futures require only a fraction of the capital needed because they are traded on margin, while not involving time loss or varying implied volatility. Contracts are settled in cash and final settlement is based on the official closing price of the stock at maturity. They do not represent ownership in companies.
The exchange said it may expand the series beyond the first 55 stocks, depending on customer demand and listing standards.
Exchange stocks like CME have come under pressure this year; because perpetual futures trading appearing on overseas exchanges is seen as a growing threat to traditional trading businesses, even though most of them are not legal in the United States.
CME, YTD
Kalshi and Coinbase were given the green light this year by the CFTC to offer ‘perpetrators’ on cryptocurrency, which are futures contracts with no expiration date. The regulatory move was seen as a precursor to broader approval of such products in stocks. Prior to SpaceX’s IPO, overseas capital companies were the center of attention, with international platforms such as Hyperliquid offering permanent futures on Elon Musk’s space company before its official debut.
