CME Group secures Morningstar index derivatives licensing deal

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CME Group Morningstar licensing deal

Highlights

CME Group signed an exclusive, multi-year licensing agreement with Morningstar to launch derivatives on key U.S. equity index benchmarks, expanding product scope.
This marks the first time CME Group will offer derivatives on Morningstar Market Indexes, aiming to enhance investor risk management and market exposure tools.
The deal provides CME access to benchmarks with over $3 trillion in linked assets and broadens Morningstar's index reach following its integration of CRSP.

Exclusive licensing deal expands index product scope

CME Group said it has signed an exclusive, multi-year licensing agreement with Morningstar to launch derivatives products based on several of Morningstar's equity index benchmarks. The initial scope includes the Morningstar U.S. Total Market, Large Cap, Large Cap Value, Large Cap Growth, Mid Cap and Small Cap indexes.

The agreement marks the first time CME Group will offer derivatives tied to the Morningstar Market Indexes. The companies say the new products are intended to give investors additional tools for risk management and market exposure across key segments of the U.S. equity market.

Tim McCourt, CME Group senior managing director and global head of equities, FX and alternative products, said the partnership is expected to combine CME's liquid equity derivatives marketplace with Morningstar's benchmark platform to support clients navigating market volatility and new trading opportunities.

Benchmark competition and market reach

Morningstar says the collaboration broadens the reach of its index business as it integrates CRSP, which it acquired earlier this year. Morningstar Indexes President Amelia Furr said the relationship with CME Group is expected to accelerate growth and bring the company's equity indexes to a new segment of the global investment marketplace.

The deal also strengthens CME Group's position in index-linked derivatives by adding products based on benchmarks with substantial existing asset ties. With more than $3 trillion in linked assets attached to the covered indexes, the launch gives CME access to a large benchmark ecosystem as exchanges compete to expand index-based trading and hedging offerings.

Our earlier S&P 500 (SPX) technical outlook highlighted that the index had slipped below its 20-day and 50-day moving averages while staying above the 200-day average, pointing to short-term selling pressure within a broader bullish structure. We also noted mixed momentum and elevated volatility, with a range-bound bias unless SPX breaks above the 7,397 resistance area or falls below support near 7,217.

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