​Weekly: SocGen Eyes WTI Variance, CME Receives Approval For Div Futures

The U.S. Commodities Futures Trading Commission has approved the CME S&P 500 Dividend Index futures contracts. The regulator approved the contracts last month. CME Group had originally filed for approval with the CFTC in July 2010, with a number of extensions being granted. In other exchange news, a proposed change to the Chicago Board Options Exchange electronic auction process, which is seeking to lift the prohibition on dual representation, could be followed by other U.S. options exchanges if successful. CBOE recently lodged the proposed change with the SEC, which will affect Automated Improvement Mechanism and Solicitation Auction Mechanism eligible securities. Also in the U.S. this week, Société Générale is seeing traction with relative value investors in its latest WTI versus S&P 500 forward variance swaps spread trade, as further declines in oil prices impact implied volatility of the future’s term structure.