Types of Event Futures
Event and economic futures contracts allow for substantial creativity. Some of the early types of these new contracts revolve around corporate events, weather and economic reports.
CME S&P/Case-Shiller Home Price Index Futures
These comprehensive financial tools make it possible to trade U.S. housing values in a centralized marketplace. They extend to the $21 trillion housing industry the same tools for risk management and investment that previous CME Group innovations have brought to agriculture and finance. These products also provide a way to gauge values in down markets, and take advantage of opportunities stemming from price fluctuations in all types of markets.
CME Nonfarm Payroll Futures
Nonfarm Payroll futures are standard contracts based on the monthly U.S. Bureau of Labor Statistics (BLS) report, usually released on the first Friday of each month that measures employment health.
CME Weather Derivatives
CME created weather derivatives as a risk-transfer mechanism for businesses that could be adversely affected by unanticipated temperature swings, unusually high snowfall or even hurricanes. Businesses can be adversely impacted by summers that are hotter than normal, or winters that are much colder, and CME offers weather derivatives that fit either scenario. Just as professionals regularly use futures and options to hedge their risk in interest rates, equities and foreign exchange, weather derivatives facilitate the management of risk from extreme movements of temperature. Find out more about CME weather derivatives.
