The US 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 plans to list the new contracts in late April.
USFE's Binary Event Futures hinge on specific, legally defined business or financial events that impact on 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.
The final decisions of these three exchanges will have real economic consequences for the futures industry and the U.S. economy as a whole. USFE's Binary Event Futures provide market participants with an efficient tool.