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

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| 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]]. It was formed in late 2006 when Man Group and its [[MF Global]] brokerage unit bought a majority stake in the US exchange formed by Eurex, which was then known as "Eurex US". The exchange was rebranded as US Futures Exchange in April 2007 focusing on trading binary contracts, which offer an all-or-nothing pay-out on a range of specific outcomes. The exchange discontinued operations on Dec. 31, 2008.<ref>{{cite web|url=http://www.ft.com/cms/s/2/efa72752-ef68-11db-a64e-000b5df10621.html|name=USFE seeks new friends on MySpace|org=Financial Times|date=April 28, 2008}}</ref>
US Futures Exchange was a U.S. registered [[futures exchange]] that offered [[electronic trading]] of [[derivatives]]. It was formed in late 2006 when Man Group and its [[MF Global]] brokerage unit bought a majority stake in the US exchange formed by Eurex, which was then known as "[[Eurex US]]". The exchange was rebranded as US Futures Exchange in April 2007, focusing on trading binary contracts, which offer an all-or-nothing pay-out on a range of specific outcomes. The exchange discontinued operations on Dec. 31, 2008.<ref>{{cite web|url=http://www.ft.com/cms/s/2/efa72752-ef68-11db-a64e-000b5df10621.html|name=USFE seeks new friends on MySpace|org=Financial Times|date=April 28, 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.
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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>
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>


[[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]], the platform was operated by [[Deutsche Boerse]] Systems, and it was regulated by the [[National Futures Association]].<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>


The USFE had a page on MySpace, the social networking platform, though this has since been pulled.<ref>{{cite web|url=http://www.ft.com/cms/s/2/efa72752-ef68-11db-a64e-000b5df10621.html|name=USFE seeks new friends on MySpace|org=Financial Times|date=April 28, 2008}}</ref>
The USFE at one point had a page on MySpace, the social networking platform, though it was later pulled.<ref>{{cite web|url=http://www.ft.com/cms/s/2/efa72752-ef68-11db-a64e-000b5df10621.html|name=USFE seeks new friends on MySpace|org=Financial Times|date=April 28, 2008}}</ref>


== Shareholders ==
== Shareholders ==
The spin-off of [[MF Global]] 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 the rogue-trading scandal and other issues that dogged MF Global complicated those plans and cost Davis his job.<ref>{{cite web|url=http://online.wsj.com/article/SB123007926246731807.html|name=End of Line For Futures Exchange|org=The Wall Street Journal|date=August 19, 2013}}</ref>
The spin-off of [[MF Global]] 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 the rogue-trading scandal and other issues that dogged MF Global complicated those plans.<ref>{{cite web|url=http://online.wsj.com/article/SB123007926246731807.html|name=End of Line For Futures Exchange|org=The Wall Street Journal|date=August 19, 2013}}</ref>


[[Eurex]] had a 27 percent stake, with management and other investors holding 6.1 percent.<ref>{{cite web|url=http://www.sec.gov/Archives/edgar/data/1401106/000119312507126679/0001193125-07-126679-index.htm|name=MF Global F-1 filing|org=Securities and Exchange Commission|date=October 31, 2007}}</ref>
[[Eurex]] had a 27 percent stake, with management and other investors holding 6.1 percent.<ref>{{cite web|url=http://www.sec.gov/Archives/edgar/data/1401106/000119312507126679/0001193125-07-126679-index.htm|name=MF Global F-1 filing|org=Securities and Exchange Commission|date=October 31, 2007}}</ref>


== 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 [[Intercontinental Exchange]].<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 [[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'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]].
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*[http://www.cftc.gov/files/dea/deausfedesignationdocument.pdf/ CFTC approval letter]
*[http://www.cftc.gov/files/dea/deausfedesignationdocument.pdf/ CFTC approval letter]
*[http://www.clearingcorp.com/ The Clearing Corporation]
*[http://www.clearingcorp.com/ The Clearing Corporation]
*[http://deutsche-boerse.com/dbag/dispatch/en/kir/gdb_navigation/home/ Deutsche Börse Group]
*[http://deutsche-boerse.com/dbag/dispatch/en/kir/gdb_navigation/home/ Deutsche Boerse Group]
*[http://www.ise.com/ International Securities Exchange]
*[http://www.ise.com/ International Securities Exchange]
*[http://www.mfglobal.com/home/default.aspx/ MF Global]
*[http://www.mfglobal.com/home/default.aspx/ MF Global]
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[[Category:North American Exchanges]]
[[Category:North American Exchanges]]
[[Category:MarketsWiki Sponsors]]
[[Category:MarketsWiki Sponsors]]
[[Category:FIA Associate Members]]

Latest revision as of 19:45, 2 November 2018



US Futures Exchange
Usfe logo.gif
Founded 2004, relaunched 2007, closed 2008
Headquarters 141 W Jackson Blvd, Suite 1460 Chicago, IL 60604
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. It was formed in late 2006 when Man Group and its MF Global brokerage unit bought a majority stake in the US exchange formed by Eurex, which was then known as "Eurex US". The exchange was rebranded as US Futures Exchange in April 2007, focusing on trading binary contracts, which offer an all-or-nothing pay-out on a range of specific outcomes. The exchange discontinued operations on Dec. 31, 2008.[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, the platform was operated by Deutsche Boerse Systems, and it was regulated by the National Futures Association.[3]

The USFE at one point had a page on MySpace, the social networking platform, though it was later pulled.[4]

Shareholders[edit]

The spin-off of MF Global 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 the rogue-trading scandal and other issues that dogged MF Global complicated those plans.[5]

Eurex had a 27 percent stake, with management and other investors holding 6.1 percent.[6]

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 Intercontinental Exchange.[7]

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.[8]

References[edit]

External Links[edit]