U.S. Futures Exchange (USFE) has announced an exclusive licensing agreement with Deutsche Börse to launch a mini-sized U.S. dollar-denominated DAX® futures contract (mini$ DAX® future). The new contract carries a $10 multiplier, enabling U.S. market participants to gain exposure to Germany’s leading stock market index in a cost-effective fashion without currency exposure. The mini$ DAX® future will be available for trading beginning October 1, 2008.
DAX®, comprising the 30 largest and most liquid German blue chips traded at the Frankfurt Stock Exchange, is the most commonly cited benchmark for measuring the performance of the German economy. Germany is the largest economy in Europe and the world’s third largest economy in USD exchange rate terms.
“The mini$ DAX® futures contract is the result of feedback from participants seeking economic exposure to German financial markets,” said John Spiegel, CEO at U.S. Futures Exchange. “Our research indicates that the global trading community sees value in a mini-sized DAX® contract. U.S.-based traders will appreciate access to German markets without additional exchange rate risk.”
The new mini$ DAX® futures contract will be open for trading on USFE’s electronic trading platform 23 hours a day. Through an extensive market development program, USFE has been able to secure a robust group of market makers for U.S. and European hours and identified significant market participant interest. “We are excited about the new market opportunities this product will offer. We appreciate the innovation at USFE and look forward to trading the product” said Ethan Kahn of Wolverine Trading.
