U.S. Futures Exchange
|US Futures Exchange|
|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|
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 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 December 17, 2008 it would exit USFE by the end of 2008 if it could not find a buyer for its stake.
USFE tried to use a low-cost structure to provide a “turnkey” platform for the listing of products developed in partnership with third parties.
The USFE also had a page on MySpace, the social networking platform, though this has since been pulled.
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.
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.
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 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.
- MF Global to Exit U.S. Futures Exchange. MF Global.
- USFE Takes the Field with a New Game Plan. SFO Magazine.
- 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. U.S. Commodity Futures Trading Commission.
- USFE seeks new friends on MySpace. Financial Times.
- MF Global F-1 filing. Securities and Exchange Commission.
- USFE Takes a Bet on Chicago Bid Outcome. Financial Times.
- U.S. FUTURES EXCHANGE TO INTRODUCE MAKER-TAKER PRICING MODEL FOR MINI-SIZED U.S. DOLLAR-DENOMINATED DAX® FUTURES CONTRACT. USFE.