U.S. Futures Exchange (USFE) was a

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...

-based,

electronic Electronic may refer to: *Electronics, the science of how to control electric energy in semiconductor * ''Electronics'' (magazine), a defunct American trade journal *Electronic storage, the storage of data using an electronic device *Electronic co ...

futures exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity o ...

that terminated all exchange operations on December 31, 2008. On December 17, 2008,

MF Global MF Global, formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over ...

had announced USFE was for sale or would be closed by December 31, 2008. USFE was originally Eurex US who bought BrokerTec, but applied and received its own futures exchange license from the U.S.

Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options. The Commodity Exchange Act ...

. In October 2006,

Man Group Man Group plc is an active investment management business listed on the London Stock Exchange. It provides a range of funds across liquid and private markets for institutional and private investors globally and is the world's largest publicly t ...

bought a majority share of Eurex US and

rebranded Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investor ...

the exchange U.S. Futures Exchange. It has been working to release a set of new products under a strategy of bringing innovation to the more than century-old derivatives business. The chief executive officer was John Spiegel.

Products

On September 3, 2008, USFE announced an exclusive licensing agreement with

Deutsche Börse Deutsche Börse AG () or the Deutsche Börse Group, is a German company offering marketplace organizing for the trading of shares and other securities. It is also a transaction services provider. It gives companies and investors access to gl ...

to launch a mini-sized U.S. dollar-denominated DAX(R) futures contract to be launched October 1, 2008. The new contract carried a $10 multiplier, enabling U.S. futures traders access to a leading German stock market index without currency exposure. On April 18, 2007, USFE launched its first contracts since its

rebranding Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investo ...

. The first was a Binary Event Future on whether the

Chicago Mercantile Exchange The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is a global derivatives marketplace based in Chicago and located at 20 S. Wacker Drive. The CME was founded in 1898 as the Chicago Butter and Egg Board, an ...

would successfully purchase the

Chicago Board of Trade The Chicago Board of Trade (CBOT), established on April 3, 1848, is one of the world's oldest futures and options exchanges. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange (CME) to form CME Group. CBOT and three other exch ...

. The second was similar except on whether the

Intercontinental Exchange Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russ ...

would purchase the

. A binary event future settles to 100 if the event occurs and 0 if the event does not occur. The CME-CBOT contract settled on July 13, 2007, to 100 when the

and the

completed a merger and became the

CME Group CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset clas ...

. On March 14, 2007, USFE announced plans to launch futures based on

ISE Ise may refer to: Places *Ise, Mie, a city in Japan ** Ise Grand Shrine, a Shinto shrine located in Ise, Mie * Ise Ekiti, a city in Nigeria * Ise, Norway, a village in Norway * Ise Province, an ancient province of Japan * River Ise, a tributary of ...

indexes, including the Homebuilders, Gold, SINdex, Revere Natural Gas, and Water Indexes. USFE also announced an exclusive deal with Morningstar to list futures based on their 16 capitalization and style-based indexes on May 23, 2007. On June 28, 2007, USFE announced it would launch a series of renewable energy futures starting with on NORDIX Financial Wind Index futures in seven distinct U.S. regions. All of these futures were due to be released in Q4 of 2007. On September 21, 2007, USFE announced that it would begin trading Spot Equivalent foreign exchange futures on a 23-hour basis. Spot Equivalent Futures are futures which pay out basis nightly so that the futures contract will price the same as a

spot contract In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after t ...

in the

foreign exchange market The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...

. However, at the same time, it would trade on a transparent, regulated exchange. The first contracts included

Euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

(EUR/USD),

British pound Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, an ...

(GBP/USD),

Japanese yen The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the ...

(USD/JPY),

Australian Dollar The Australian dollar ( sign: $; code: AUD) is the currency of Australia, including its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is officially used as currency by three independent Pacific Is ...

(AUD/USD),

Swiss Franc The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the ...

(USD/CHF), and

Canadian Dollar The Canadian dollar (symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style g ...

(USD/CAD).

Trading platform

USFE was a fully

exchange. Its last platform release, USFE 1.0, was based on Eurex 8.0 developed by Deutsche Börse Systems with an additional market allocation algorithm to incentivize liquidity providers. USFE used the Eurex

network backbone A backbone or core network is a part of a computer network which interconnects networks, providing a path for the exchange of information between different LANs or subnetworks. A backbone can tie together diverse networks in the same building ...

to provide connectivity worldwide.

References

External links

* {{Authority control Financial services companies disestablished in 2008 2008 disestablishments in Illinois Commodity exchanges in the United States Defunct companies based in Chicago Futures exchanges