Man Group and Eurex agreed to a deal Thursday designed to expand the scope of the US Futures Exchange.
By way of the $23.2 million sale of 70% of Eurex’s shares in USFE, Man Group hopes to expand the derivatives market by using USFE to incubate and innovate new products. Man Group will also make a $35 million capital injection into USFE.
Deutsche Borse Systems will retain its operating responsibilities for the trading platform and the communications network for USFE.
Man Group says its goal for the USFE includes offering new products targeted at buy-side customers and expanding the volume in listed derivatives through broadening its ETFs.
Over time, Man Group plans to reduce its share in USFE to below 50% by inviting other trading institutions, including hedge funds and financial services firms, to join the partnership with an equity position. Eurex will keep its 30% share.