The US Futures Exchange (USFE) will list its cash-settled futures contracts on Morningstar’s (NASDAQ: MORN) style equity indexes beginning September 28.
The US Futures Exchange (USFE) will list its cash-settled futures contracts on Morningstar’s (NASDAQ: MORN) style equity indexes beginning September 28. Nine contracts, based on the indexes in Morningstar’s Style Box, will trade with quarterly expiries.
Morningstar’s Style Box organizes stocks into categories by market capitalization and growth or value orientation. USFE’s futures are derived from Morningstar’s nine indexes, and include the Large Cap Value, Large Cap Core, and Large Cap Growth indexes; Mid Cap Value, Mid Cap Core, and Mid Cap Growth indexes; and Small Cap Value, Small Cap Core and Small Cap Growth indexes. The contracts are the first listed exchange futures products based on the Morningstar Style Index family.
‘Investors continue to search for new ways to balance their portfolios, and particularly to hedge equity holdings,’ says Satish Nandapurkar, CEO of USFE. ‘USFE’s futures contracts on Morningstar’s Style Box indexes will provide an innovative new investment strategy for the retail market.’
The contracts will trade as traditional equity index futures and will be valued at US10 per index point. Credit Suisse is among the firms that will provide liquidity for the contracts.
