On this episode of Futures Radio Show we have an essential panel discussion on the 2023 Russell US reconstitution rebalancing. Get ready to gain insights that every trader and investor needs to know.
Stay tuned as we bring in guests from major exchanges to discuss the Russell Recon. This podcast is packed with crucial information for traders like you.
Download the chart deck here
This episode is sponsored by FTSE Russell, home to the renowned Russell 2000 Index. Did you know that the Russell 2000 is the top choice among institutional investors, with an 81% share and $1.6 trillion in benchmarked assets?
To learn more about FTSE Russell please go to https://www.ftserussell.com/
Futures Radio is a weekly Futures Trading Podcast hosted by 24-year futures veteran and CME member Anthony Crudele, an ex-pit trader and one of the first to trade the E-Mini S&P. Each week Anthony talks with traders, CEOs, and other proven market participants about relevant trading and investing information. Past Performance is not indicative of future results. Derivatives trading is not suitable for all investors.
On the panel: Catherine Yoshimoto, Director of Product Management, FTSE Russell · Indrani De, Head of Global Investment Research, FTSE Russell · Paul Woolman, Executive Director and Global Head of Equity Index Products, CME Group · Rick Rosenthal, Director of North American Derivative Sales, Cboe Global Markets.
In this episode
- How the Russell indexes are constructed, and why roughly $12 trillion in assets is benchmarked to the franchise
- Why recon day is one of the busiest sessions in US equities — $140 billion traded at the close of last year’s reconstitution
- The 2023 schedule: an April 28 rank day feeding the June 23 reconstitution
- Banding, and how it limits turnover as companies cross between the Russell 1000 and the Russell 2000
- This year’s large-cap/small-cap breakpoint falling to $4.2 billion, and which names move because of it
- The growth and value style reset, including Meta shifting back to fully growth
- Float adjustment — a Russell innovation from 1984 that has since become an industry standard
- Paul Woolman on the CME Group side: the different ways to access Russell exposure, and using RTY futures, micros and event contracts to manage risk into and through the recon
- Why the reconstitution lands alongside the quarterly roll, and what that does to volume
- Rick Rosenthal on Cboe: three consecutive years of record volume, and roughly half of daily SPX option volume now trading as zero-DTE
- Why a muted VIX through a down market masked intraday volatility running close to 2% on both the Russell 2000 and the S&P 500
