E*TRADE Financial Corporation (NYSE: ET) today announced that its subsidiary, E*TRADE Futures LLC, has joined the Clearing House of the Chicago Mercantile Exchange (CME). The CME is the largest futures exchange in the U.S. and the largest derivatives clearing entity in the world.
"E*TRADE FINANCIAL is proud to strengthen its relationship with the Chicago Mercantile Exchange, providing customers with access to new futures trading opportunities," said Lou Klobuchar, President and Chief Brokerage Officer, E*TRADE Securities LLC. "Joining CME's Clearing House is a demonstration of the commitment by E*TRADE FINANCIAL to innovate on behalf of the individual investor, providing the best trading opportunities available to its customers in any venue -- equities, options, futures."
E*TRADE Professional Trading, LLC, began its initiative to deliver a futures trading offering last year with its direct connectivity to GLOBEX, the CME's electronic trading platform. In March 2003, E*TRADE Professional Trading began allowing its customers to trade the CME's E-mini stock index futures contracts, including: E-mini(TM) S&P 500®, E-mini NASDAQ-100®, E-mini S&P MidCap 400(TM) and E-mini Russell 2000® futures. E*TRADE FINANCIAL solidified its commitment to the initiative with the appointment of Jack Sandner, futures industry veteran and former 13-year Chairman of the CME, to lead E*TRADE Futures. Joining the CME Clearing House completes the Company's strategic approach to the futures marketplace.
Jack Sandner, Chairman, E*TRADE Futures said, "E*TRADE FINANCIAL is poised to deliver on the promise of retail futures trading." He added. "CME's E-products and E*TRADE FINANCIAL's customers are a natural fit. By making CME products available to its customers, E*TRADE FINANCIAL is providing an alternative to achieve greater portfolio diversification."
"We are pleased that E*TRADE FINANCIAL has made this investment in CME's future, strengthening its commitment to our innovative products and platforms by joining our exchange's Clearing House," said CME Chairman Terry Duffy. "We have put significant effort into expanding the distribution of our products through GLOBEX. As a result, the electronic trading at CME has grown exponentially and increased more than 43 percent in 2003."