The Russell 2000 futures contract is a legally binding agreement to buy or sell the value of the Russell Index at a specific future date. The Russell futures contract has a multiplier of $500 (identical to that used for both the S&P 500 and S&P MidCap 400). For example, if the futures price is 210.00, the value of the contract is $105,000 ($500 x 210.00). Because Russell futures are cash-settled, there is no delivery of individual stocks at final settlement. The "tick" size (or the minimum price change) is .05 index points, or $25.00 per contract. This means that if the futures contract moves the minimum price increment (one tick), say from 210.00 to 210.05, the underlying cash value of the contract has increased by $25.00. All futures positions (and all short options positions) require a performance bond. Positions are marked- to-market daily. Additional deposits may be required beyond the initial amount if your position moves against you. (For an explanation of the mechanics and requirements for futures and options trading at the CME, call your broker.)

Russell futures expire on the same day as the existing CME S&P 500 futures and S&P MidCap 400 futures. Like the S&P contracts, which are settled using their respective Special Opening Quotations, all Russell 2000 open positions at the close of the final trading day are settled in cash to the Special Opening Quotation on the third Friday of the contract month.

The Final Settlement Price is a special quotation of the Russell 2000 Index based on the opening prices of the component stocks in the Index, or on the last sale price of a stock that does not open for trading on the regularly scheduled day of final settlement.