CME Group plans to introduce futures and options linked to the performance of professional and college sports teams and athletes through a partnership with index provider FutureSports.

The first FutureSports Performance Index futures could begin trading this summer, subject to regulatory approval. The contracts will be cash settled and offered with monthly and quarterly expiration dates, with additional product details expected in the coming weeks.

FutureSports converts official play by play statistics into rules based indexes designed to measure performance across sports played on fields, courts and ice.

Unlike binary contracts that settle based on whether a team wins or loses, the planned CME products will reference continuously priced indexes based on a broader set of team and athlete statistics.

CME said the contracts could be used both for trading and for managing financial risks connected to the sports industry. Potential users include stadium operators, sponsors, insurers, apparel manufacturers and broadcasting partners whose revenue can be affected by team and athlete performance.

FutureSports will independently administer the indexes under published governance and methodology procedures designed to align with international financial benchmark principles.

Sports leagues will provide the official data used to calculate the indexes but will not participate in determining index values or governing the methodology. FutureSports also plans to announce partnerships with professional leagues whose data will underpin the first products.

The initiative extends CME’s push beyond its traditional institutional derivatives business. The exchange previously partnered with FanDuel to offer event contracts covering sports outcomes, financial benchmarks, commodities, cryptocurrencies and economic indicators.

The FutureSports partnership takes a different approach by turning statistical sports performance into benchmark indexes that can support traditional futures and options contracts.