U.S. Futures Exchange

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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; Kevin Davis, chairman
Products Foreign exchange, equity indexes and renewable energy futures
Website www.usfe.com

The US Futures Exchange is an U.S. registered futures exchange offering electronic trading of derivatives, relaunched in April 2007 with a focus 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.

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) is concentrating on developing products to attract the retail market with mini-sized equity foreign equity index products and currency products.

USFE plans to use its low-cost structure to provide a “turnkey” platform for the listing of products developed in partnership with third parties.[1]

To gain traction, it works with MF Global and other brokers and enfranchises four to five market makers for each product.

Clearing is provided by The Clearing Corporation[2], its platform is operated by Deutsche Börse Systems and regulation is by the National Futures Association.

The USFE also had a page on MySpace, the social networking platform, though this has since been pulled.[3]

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 have committed to a proportionate reduction in their holdings to bring in other partners. Eurex retains a 27 percent stake, with management and other investors holding 6.1 percent.[4]

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[5].

The USFE’s push into the retail market saw its first foreign exchange contracts listed on Sept. 21, 2007. The FX Spot Equivalent Futures trade 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 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 announced plans to launch a dollar-deon=minated mini-Dax contract licensed from Deutsche Borse on October 1, 2008, tracking the benchmark Dax 30.

References[edit]

External Links[edit]