FutureSports has agreed with Major League Baseball (MLB) to create rules-based financial indexes tracking the performance of each of the league’s 30 teams, potentially providing the basis for a new class of sports-related derivatives. Under the agreement, MLB will supply Official League Data for the creation of CME FutureSports Performance Indexes (FSPI). CME Group plans to list weekly, monthly and quarterly cash-settled futures based on the benchmarks, subject to regulatory review.
The play-by-play indexes will measure teams’ cumulative performance and are intended to provide instruments for both investment and hedging, including management of financial exposures linked to the business of professional baseball. FutureSports will independently determine, calculate and govern the indexes using transparent, rules-based methodologies. MLB will have no role in those processes.
FutureSports has previously developed similar indexes based on NHL team performance, with CME planning futures contracts linked to those benchmarks.
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