Equity Index Futures: A Mature Market with Unresolved Regulatory Challenges

Equity index futures are futures contracts written on equity indices such as the S&P 500 or the Dow Jones Industrial Average. Deriving values from the underlying indices, index futures offer expedience to investors interested in a broad economic sector or geographical region represented by the indices without taking a position in each constituent stock. Equity index futures started trading in the U.S. on the Chicago Mercantile Exchange (CME) in 1982 against the S&P 500 index.  Today, equity index futures are one of the most actively traded financial derivatives in the U.S., with almost 400 million index futures contracts traded on … Read more