U.S. Futures Exchange (USFE) has announced a new futures product to let investors take a position on the fate of the Chicago Board of Trade (CBOT), which has received merger proposals from both the Chicago Mercantile Exchange (CME) and IntercontinentalExchange (ICE). The contracts are the first of USFE's Binary Event Futures and were self-certified with the Commodity Futures Trading Commission (CFTC).
USFE’s Binary Event Futures hinge on specific, legally defined business or financial events that impact market participants. The exchange plans to list multiple contracts, each representing different outcomes and timeframes for the CBOT’s possible merger. The contracts will settle on an all-or-nothing basis.
"USFE is committed to providing relevant and innovative products for our customers, and the decisions of these three exchanges have real economic consequences for the futures industry and the U.S. economy as a whole," said Satish Nandapurkar, CEO of USFE. "Our binary futures provide a simple way to hedge against risks associated with either merger possibility."
USFE plans to list the new contracts in late April.
