The CME has launched futures and options based on the US non-farm payroll data. It says that the contracts will allow its customers to directly manage their exposure to the government labour number or to offset positions in financial markets. In a press release, Rick Redding, CME Group managing director of products and services, says: “There is a strong correlation between the non-farm payroll report and CME financial futures contracts as well as other financial instruments. Listed futures and options on futures on the non-farm payroll are a transparent, straightforward and accessible way for our customers to offset unexpected financial market moves that often occur when this number comes out.”
Given the high correlation of its existing contracts though, you could be forgiven for asking why bother introducing further complexity? Still, it raises the potential for a Trading places-style scandal if the number should ever be leaked. I hear the old gorilla suits are flying out of Chicago fancy dress shops even as I write.