CME CME Group Inc

By Dieter Holger

CME Group Inc. (CME) said Thursday that it will launch futures contracts for the S&P 500 ESG Index that will start trading on Nov. 18, pending regulatory approval.

It will offer E-mini contracts for the index, which are electronically traded and represent a fraction of the value of a standard futures contract, CME said.

CME's new product aims to meet "the changing risk management needs of our customers in an evolving global marketplace" and allow investment decisions to align with personal or institutional values, said Tim McCourt, global head of equity index and alternative investment products at CME.

The S&P 500 ESG Index made its debut in April and seeks performance within 1% of the S&P 500, but screens out companies involved with tobacco or controversial weapons as well as companies with an ESG score in the bottom 25% of the S&P 500 or a low score as defined by the United Nations Global Compact principles for responsible business.

As a result, around 154 of the S&P 500's members don't appear in the index, including Facebook Inc. (FB), Boeing Co. (BA) and Berkshire Hathaway Inc. (BRKA). The S&P 500 ESG Index is up 1.31% over the last six months, compared with the 0.7% gains of the regular S&P 500, FactSet market data showed at 1508 GMT.

Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger

(END) Dow Jones Newswires

October 03, 2019 11:38 ET (15:38 GMT)

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