A Wide Range of Russell Choices!
By Kristina Zurla Landgraf ISSUE 403 | MARCH 2005
With four U.S. exchanges offering trading in Russell index futures, it has become the most competitive stock index product available. Which do you choose? Each exchange offers slight differences in product listings and contract specifications, so as a smart trader, you'll want to look at all the details to determine which is right for you. Of course there are the usual considerations with any market, such as liquidity, cost, structure, venue, and how it fits in with your particular trading strategy and/or goal. But whichever you choose, Russell futures offer access to a broad measure of the market and many new trading opportunities. At Lind-Waldock, we've got a special offer and special educational opportunity to learn more about these dynamic markets. Read on for more details.
All Russell index futures markets are subsets of the broad-market Russell 3000® Index, which represents approximately 98 percent of the U.S. equity market. The Russell 1000 Index measures the performance of the 1,000 largest U.S. companies based on total market capitalization, accounting for about 92 percent of the capitalization of the Russell 3000. The Russell 2000 Index includes the next 2,000 largest companies.
Russell Investment Group, owned by Northwestern Mutual since 1999, created the indexes in 1984 and reconstitutes them completely every year. In essence, the market decides which companies are included in the index by their capitalizations--thus, their price times the number of outstanding shares.
Currently, Russell futures are traded at Chicago Mercantile Exchange, Eurex US, the New York Board of Trade and the CBOE Chicago Futures Exchange. Here’s a rundown of what each exchange offers, and an overview of contract specifications.
Chicago Mercantile Exchange
| Contract: | Russell 2000® Index |
| Trading Venue: | Open outcry and Globex electronic |
| Size: | $500 times the Russell 2000 stock index price |
| Minimum Tick Size: | Floor: regular 0.05 = $25; Globex: regular 0.05 = $25 |
| Symbol: | RL |
| Trading Hours: | Floor: Mon/Fri 8:30 a.m. to 3:15 p.m. CT Globex: Mon/Thurs 5:00 p.m. to 8:15 a.m. & 3:30 p.m. to 4:30 p.m., shutdown period 4:30 p.m. to 5:00 p.m. nightly; Sunday and holiday 5:00 p.m. to 8:15 a.m. CT |
| Contract: | E-Mini™ Russell 2000® Index |
| Trading Venue: | Globex electronic |
| Size: | $100 times the Russell 2000 stock index price |
| Minimum Tick Size: | Regular 0.10 = $10 |
| Symbol: | ER |
| Trading Hours: | Mon/Thurs 5:00 p.m. to 3:15 p.m. CT and 3:30 p.m. to 4:30 p.m.; shutdown period 4:30 p.m. to 5:00 p.m. nightly; Sunday and holiday 5:00 p.m. to 3:15 p.m. |
| Contract: | E-Mini™ Russell 1000® Index |
| Trading Venue: | Globex electronic |
| Size: | $100 times the Russell 1000 stock index price |
| Minimum Tick Size: | Regular 0.10 = $10 |
| Symbol: | RS |
| Trading Hours: | Mon/Thurs 5:00 p.m. to 3:15 p.m. CT and 3:30 p.m. to 4:30 p.m.; shutdown period 4:30 p.m. to 5:00 p.m. nightly; Sunday and holiday 5:00 p.m. to 3:15 p.m. |
Eurex US
| Contract: | Russell 2000 Index |
| Trading Venue: | Electronic |
| Size: | $100 times the Russell 2000 stock index price |
| Minimum Tick Size: | 0.10 = $10 |
| Symbol: | FWR1 |
| Trading Hours: | 7:00 p.m. to 4:00 p.m. CT (hours change to 5:00 p.m. to 4:00 p.m. April 5) |
| Contract: | Russell 1000 Index |
| Trading Venue: | Electronic |
| Size: | $100 times the Russell 2000 stock index price |
| Minimum Tick Size: | 0.10 = $10 |
| Symbol: | FWR2 |
| Trading Hours: | 7:00 p.m. to 4:00 p.m. CT (hours change to 5:00 p.m. to 4:00 p.m. April 5) |
CFE
| Contract: | Mini-Russell 2000 Index |
| Trading Venue: | CBOEdirect Electronic |
| Size: | $100 times the Russell 2000 stock index price |
| Minimum Tick Size: | Regular 0.05 = $5 |
| Symbol: | RT |
| Trading Hours: | 8:30 a.m to 3:15 p.m. CT |
| Contract: | Russell 1000 Index |
| Trading Venue: | CBOEdirect Electronic |
| Size: | $500 times the Russell 1000 stock index price |
| Minimum Tick Size: | 0.05 = $25 |
| Symbol: | RN |
| Trading Hours : | 8:30 a.m. to 3:15 p.m. CT |
NYBOT
| Contract: | Russell 1000 Index |
| Trading Venue: | Open outcry |
| Size: | $500 times the Russell 1000 stock index price |
| Minimum Tick Size: | 0.05 = $25 |
| Symbol: | R |
| Trading Hours : | 9:30 a.m. to 4:15 p.m. ET |
| Contract: | Russell 1000 Index Mini |
| Trading Venue: | Open outcry |
| Size: | $50 times the Russell 1000 stock index price |
| Minimum Tick Size: | 0.05 = $2.50 |
| Symbol: | RM |
| Trading Hours : | 9:30 a.m. to 4:15 p.m. ET |
| Contract: | Russell 3000® Index |
| Trading Venue: | Open outcry |
| Size: | $500 times the Russell 3000 stock index price |
| Minimum Tick Size: | 0.5 = $25 |
| Symbol: | TH |
| Trading Hours : | 9:30 a.m. to 4:15 p.m. ET |
The NYBOT also offers futures contracts on the Russell 1000 Value Index, Russell 1000 Growth Index, Russell 2000 Value Index and Russell 2000 Growth Index.
Learn More
Join CME and Lind-Waldock for a free online seminar on trading Russell index futures March 23 at 3:30 p.m. CT. David Lerman, Associate Director of CME Equity Products, and Kelly Haughton, Strategic Director of Russell Indexes, will lead you through this live, interactive online event. Learn how you can uncover trading opportunities based on the difference in performance of small-capitalization and large-capitalization equities using index futures. You’ll also learn about options trading. Click here for details.
Special Offer
Lind-Waldock also brings you a special offer to trade Eurex US Russell futures, and it’s open to both clients and non-clients. You can get five contracts free when you trade through a Lind-Waldock self-directed account, a value worth up to $170. Click here to fill out a form and get started!
Kristina Zurla Landgraf is editor of Lind eWire. She can be reached by email at editor@lind-waldock.com.
Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading advice is based on information taken from trade and statistical services and other sources which Lind-Waldock believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder.
© 2005 Lind-Waldock, A Division of Man Financial Inc. All Rights Reserved.
