Difference between revisions of "U.S. Futures Exchange"

From MarketsWiki
Jump to navigation Jump to search
Line 8: Line 8:
| homepage= [http://www.usfe.com/ www.usfe.com]}}
| homepage= [http://www.usfe.com/ www.usfe.com]}}


US Futures Exchange was a U.S. registered [[futures exchange]] that offered electronic trading of [[derivatives]] that will discontinue operations on December 31, 2008.  The exchange, which was relaunched in April 2007 focused on [[retail]] and [[institutional]] products generally unavailable on other [[exchange]]s.
US Futures Exchange was a U.S. [[registered]] [[futures exchange]] that offered [[electronic trading]] of [[derivatives]] that will discontinue operations on Dec. 31, 2008.  The [[exchange]], which was relaunched in April 2007 focused on [[retail]] and [[institutional]] products generally unavailable on other [[exchange]]s.


The Chicago-based USFE was rebranded under new ownership following the October 2006 [[acquisition]] of a majority stake by [[Man Group]] and its [[MF Global]] [[brokerage]] unit from [[Eurex]], which retains a minority holding after its legacy organization, [[Eurex US]], failed to gain market traction following its launch in 2004. MF Global announced on December 17, 2008 it would exit USFE by the end of 2008 if it could not find a buyer for its stake.<ref>{{cite web|url=http://www.mfglobalinvestorrelations.com/phoenix.zhtml?c=194911&p=irol-newsArticle&ID=1237350&highlight=|name=MF Global to Exit U.S. Futures Exchange |org=MF Global|date=December 26, 2008}}</ref>
The Chicago-based USFE was rebranded under new ownership following the October 2006 [[acquisition]] of a majority stake by [[Man Group]] and its [[MF Global]] [[brokerage]] unit from [[Eurex]], which retains a minority holding after its legacy organization, [[Eurex US]], failed to gain market traction following its launch in 2004. MF Global announced on Dec. 17, 2008 it would exit USFE by the end of 2008 if it could not find a [[buyer]] for its stake.<ref>{{cite web|url=http://www.mfglobalinvestorrelations.com/phoenix.zhtml?c=194911&p=irol-newsArticle&ID=1237350&highlight=|name=MF Global to Exit U.S. Futures Exchange |org=MF Global|date=December 26, 2008}}</ref>


[[Satish Nandapurkar]], CEO since its inception, left the post in January 2008, and was replaced on an interim basis by [[John Goldsberry]], with [[John Spiegel]] later named as CEO.
[[Satish Nandapurkar]], CEO since its inception, left the post in January 2008, and was replaced on an interim basis by [[John Goldsberry]], with [[John Spiegel]] later named as CEO.
Line 18: Line 18:
U.S. Futures Exchange (USFE) concentrated on developing products to attract the [[retail]] market with mini-sized equity foreign equity [[index]] products and currency products.
U.S. Futures Exchange (USFE) concentrated on developing products to attract the [[retail]] market with mini-sized equity foreign equity [[index]] products and currency products.


USFE tried to use a low-cost structure to provide a “turnkey” platform for the listing of products developed in partnership with third parties.<ref>{{cite web|url=http://www.sfomag.com/homeinterviewdetail.asp?ID=1925105277&MonthNameID=October&YearID=2007|org=SFO Magazine|date=October 2007|name=USFE Takes the Field with a New Game Plan}}</ref>
USFE tried to use a low-[[cost]] structure to provide a “turnkey” platform for the listing of products developed in partnership with third parties.<ref>{{cite web|url=http://www.sfomag.com/homeinterviewdetail.asp?ID=1925105277&MonthNameID=October&YearID=2007|org=SFO Magazine|date=October 2007|name=USFE Takes the Field with a New Game Plan}}</ref>


[[Clearing]] was provided by [[The Clearing Corporation]]<ref>{{cite web |url=http://www.cftc.gov/files/dea/deausfedesignationdocument.pdf|name=Application of U.S. Futures Exchange, L.L.C. for Designation as a Contract Market Pursuant to Sections 5 and 6(a) of the Commodity Exchange Act|org=U.S. Commodity Futures Trading Commission|date=April 28, 2008}}</ref>, its platform is operated by [[Deutsche Börse]] Systems and regulation is by the [[National Futures Association]].
[[Clearing]] was provided by [[The Clearing Corporation]]<ref>{{cite web |url=http://www.cftc.gov/files/dea/deausfedesignationdocument.pdf|name=Application of U.S. Futures Exchange, L.L.C. for Designation as a Contract Market Pursuant to Sections 5 and 6(a) of the Commodity Exchange Act|org=U.S. Commodity Futures Trading Commission|date=April 28, 2008}}</ref>, its platform is operated by [[Deutsche Börse]] Systems and regulation is by the [[National Futures Association]].
Line 28: Line 28:


== Product Development ==
== Product Development ==
The new USFE launched its first product on Apr. 20, 2007, a [[binary future]] based on the outcome of the takeover battle for the [[Chicago Board of Trade]] between the [[Chicago Mercantile Exchange]] and the [[IntercontinentalExchange]]<ref>{{cite web|url=http://search.ft.com/ftArticle?sortBy=gadatearticle&queryText=USFE&y=0&aje=true&x=0&id=070323000858&ct=0 |org=Financial Times|name=USFE Takes a Bet on Chicago Bid Outcome|date=November 19, 2007}}</ref>.
The new USFE launched its first product on Apr. 20, 2007, a [[binary future]] based on the outcome of the takeover battle for the [[Chicago Board of Trade]] between the [[Chicago Mercantile Exchange]] and the [[IntercontinentalExchange]].<ref>{{cite web|url=http://search.ft.com/ftArticle?sortBy=gadatearticle&queryText=USFE&y=0&aje=true&x=0&id=070323000858&ct=0 |org=Financial Times|name=USFE Takes a Bet on Chicago Bid Outcome|date=November 19, 2007}}</ref>


USFE's push into the [[retail]] market saw its first foreign exchange contracts listed on Sept. 21, 2007. The FX [[Spot Equivalent Futures]] traded on a 23-hour basis, with six initial currency pairs including the US dollar against the [[euro]], [[yen]], [[sterling]], [[Swiss franc]], [[Canadian dollar]] and the [[Australian dollar]].
USFE's push into the [[retail]] market saw its first foreign exchange [[contract]]s listed on Sept. 21, 2007. The FX [[Spot Equivalent Futures]] traded on a 23-hour basis, with six initial currency pairs including the U.S. dollar against the [[euro]], [[yen]], [[sterling]], [[Swiss franc]], [[Canadian dollar]] and the [[Australian dollar]].


USFE announced on Nov. 12, 2007, that it would exclusively license the [[Bombay Stock Exchange]]’s (BSE) benchmark [[USFE SENSEX Index|SENSEX Index]]. US dollar-denominated futures trading began on Apr. 4, 2008. USFE’s SENSEX contract allows eligible US investors to participate in India’s equity markets without requiring [[American Depository Receipt]] (ADR) authorization. The [[SENSEX Index]] is composed of 30 major Indian stocks and is regarded as the country’s premier stock market index.  
USFE announced on Nov. 12, 2007, that it would exclusively license the [[Bombay Stock Exchange]]’s (BSE) benchmark [[USFE SENSEX Index|SENSEX Index]]. US dollar-denominated futures trading began on Apr. 4, 2008. USFE’s SENSEX contract allows eligible US [[investor]]s to participate in India’s equity markets without requiring [[American Depository Receipt]] (ADR) authorization. The [[SENSEX Index]] is composed of 30 major Indian [[stock]]s and is regarded as the country’s premier stock market index.  


The exchange launched a dollar-denonminated [[mini-Dax]] contract licensed from [[Deutsche Borse]] on October 1, 2008, tracking the benchmark Dax 30 and using a maker-taker pricing model.<ref>{{cite web|url=http://www.usfe.com/pr/USFE%20Maker-Taker%20Release.pdf|name=U.S. FUTURES EXCHANGE TO INTRODUCE MAKER-TAKER PRICING MODEL FOR MINI-SIZED U.S. DOLLAR-DENOMINATED DAX® FUTURES CONTRACT|org=USFE|date=December 26, 2008}}</ref>
The exchange launched a dollar-denominated [[mini-Dax]] contract licensed from [[Deutsche Borse]] on Oct. 1, 2008, tracking the benchmark Dax 30 and using a [[maker-taker]] pricing [[model]].<ref>{{cite web|url=http://www.usfe.com/pr/USFE%20Maker-Taker%20Release.pdf|name=U.S. FUTURES EXCHANGE TO INTRODUCE MAKER-TAKER PRICING MODEL FOR MINI-SIZED U.S. DOLLAR-DENOMINATED DAX FUTURES CONTRACT|org=USFE|date=December 26, 2008}}</ref>


== References ==
== References ==

Revision as of 01:02, 29 December 2008

US Futures Exchange
Usfe logo.gif
Founded 2004, relaunched 2007
Headquarters 141 W Jackson Blvd, Suite 1460 Chicago, IL 60604
Key People John Spiegel CEO; Danijel Medic, head of technology;
Products Foreign exchange, equity indexes and renewable energy futures
Website www.usfe.com

US Futures Exchange was a U.S. registered futures exchange that offered electronic trading of derivatives that will discontinue operations on Dec. 31, 2008. The exchange, which was relaunched in April 2007 focused on retail and institutional products generally unavailable on other exchanges.

The Chicago-based USFE was rebranded under new ownership following the October 2006 acquisition of a majority stake by Man Group and its MF Global brokerage unit from Eurex, which retains a minority holding after its legacy organization, Eurex US, failed to gain market traction following its launch in 2004. MF Global announced on Dec. 17, 2008 it would exit USFE by the end of 2008 if it could not find a buyer for its stake.[1]

Satish Nandapurkar, CEO since its inception, left the post in January 2008, and was replaced on an interim basis by John Goldsberry, with John Spiegel later named as CEO.

Business Overview[edit]

U.S. Futures Exchange (USFE) concentrated on developing products to attract the retail market with mini-sized equity foreign equity index products and currency products.

USFE tried to use a low-cost structure to provide a “turnkey” platform for the listing of products developed in partnership with third parties.[2]

Clearing was provided by The Clearing Corporation[3], its platform is operated by Deutsche Börse Systems and regulation is by the National Futures Association.

The USFE had a page on MySpace, the social networking platform, though this has since been pulled.[4]

Shareholders[edit]

The spin-off of MF Global has made it the largest single shareholder in the USFE, with a 49.9 percent stake, with Man Group’s holding reduced to 17 percent. Both companies committed to a proportionate reduction in their holdings to bring in other partners, but difficulties at MF Global complicated those palns. Eurex had a 27 percent stake, with management and other investors holding 6.1 percent.[5]

Product Development[edit]

The new USFE launched its first product on Apr. 20, 2007, a binary future based on the outcome of the takeover battle for the Chicago Board of Trade between the Chicago Mercantile Exchange and the IntercontinentalExchange.[6]

USFE's push into the retail market saw its first foreign exchange contracts listed on Sept. 21, 2007. The FX Spot Equivalent Futures traded on a 23-hour basis, with six initial currency pairs including the U.S. dollar against the euro, yen, sterling, Swiss franc, Canadian dollar and the Australian dollar.

USFE announced on Nov. 12, 2007, that it would exclusively license the Bombay Stock Exchange’s (BSE) benchmark SENSEX Index. US dollar-denominated futures trading began on Apr. 4, 2008. USFE’s SENSEX contract allows eligible US investors to participate in India’s equity markets without requiring American Depository Receipt (ADR) authorization. The SENSEX Index is composed of 30 major Indian stocks and is regarded as the country’s premier stock market index.

The exchange launched a dollar-denominated mini-Dax contract licensed from Deutsche Borse on Oct. 1, 2008, tracking the benchmark Dax 30 and using a maker-taker pricing model.[7]

References[edit]

External Links[edit]