NIBA Journal

Insights, analysis, and updates from the National Introducing Brokers Association

CME Updates
2 min read

Why Small Cap Indexes Are An Economic Barometer

Remember the Trump bump? The post- 2016 election climb in U.S. equity indexes was signaled first in small cap indexes. The Russell 2000 index of small caps climbed 14.3 percent following the election, its highest post-election climb since its inception in 1979. Small caps represent a snapshot of the U.S. economy since most of the stocks in indexes like the Russell 2000 are domestic. That means they are often the first indexes to respond when major market moving events like a U.S. election occur. “Those small cap U.S. equity stocks have less exposure outside the United States so they’re a good barometer for U.S. economic activity,” Ron Bundy, CEO Benchmarks-North America for FTSE Russell told us in an interview. The Role of the Exchange This barometer role is one reason the Russell’s move to CME Group made waves when it transitioned to the exchange in July 2017. Since then, E-mini...

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CME Updates
6 min read

Why The Future of Energy Could Be U.S. Natural Gas

Geology dictates that crude oil and natural gas go hand-in-hand. Drill a well for one, and there’s a good chance you’ll also find the other. For years, oil’s coupling with gas (for better or worse) underpinned pricing and trading for a variety of petroleum products worldwide. That includes liquefied natural gas (LNG), which was traditionally bought and sold through long-term contracts linked to Brent crude. The American shale revolution, and the emergence of U.S.-produced LNG as an energy source for markets around the world, changed that, says Derek Sammann, Senior Managing Director, Global Head of Commodities and Options Products for CME Group. “With the global natural gas markets increasingly referencing U.S.-sourced Henry Hub natural gas as a central reference point for global natural-gas markets, what could the future of U.S. energy markets look like?” Sammann asked in introducing the Future of Energy forum at a Chicago Council on Global Affairs...

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