Non Farm Payroll Futures Contract Coming

[Don't Pass Bet]

CME Group is going to launch a contract based on the Non Farm Payroll Number.

Per the site...

"These plain vanilla contracts are based on the monthly U.S. Bureau of Labor Statistics (BLS) report usually released on the first Friday of each month that measures employment health. NFP futures and options are a transparent, straightforward and accessible way for you to gain direct exposure to the government labor number or to offset unexpected financial market moves that often occur when this number comes out."

The price will be $25 x the change over the previous figure that was released. Options will be listed as well.

This will be a very interesting contract to speculate on and for bigger traders to hedge possible "bad numbers" that might come out.

 

[nazzdack]

Then again, you could just trade stocks or bonds.

 

[makloda]

Should they garner some volume they could make an interesting gauge of market expectations vs. "polled economist expectations".

 

[NoteBoy]

Quote from makloda:

Should they garner some volume they could make an interesting gauge of market expectations vs. "polled economist expectations".

Exactly. There used to be a non-farm derivative contract, I remember it could be as much as 30-40k off of what the median economist expectation was. Good to know when the market is leaning one way.

Hopefully this CME version lasts longer than the last one.

 

[Elitist Trader]

anyone actually trade this?

 

[bond_trad3r]

Good idea

 

[dinn13]

Quote from Elitist Trader:

anyone actually trade this?

Nope, literally no one. I don't see that there has ever been a trade done with the contract (if there had been there should be a line representing open interest in the pic I included).