Nasdaq Futures

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Nasdaq Futures, Inc.
Founded 2015
Products Electronically traded futures and options

Nasdaq Futures Exchange, Inc. (NFX) is a Designated Contract Market regulated by the U.S. Commodity Futures Trading Commission and is one of Nasdaq’s four U.S. derivative exchanges.[1] NFX is a wholly-owned subsidiary of Nasdaq. It offers trading in futures and options based on natural gas, crude oil and power products and interest rates. The market competes against the Intercontinental Exchange Inc. and CME Group Inc., the two largest U.S. energy exchange operators.[2] Nasdaq NFX hopes to attract volume from the incumbents with lower trading and clearing costs, offered through the Options Clearing Corporation.[3] [4]

NFX is fully electronic exchange utilizing Nasdaq’s GENIUM INET technology, which features a transparent central limit order book and real-time trade reporting functionality along with pre-trade risk management capabilities. Nasdaq Futures' independent software vendors are Orc, CQG, OptionsCity, Stellar Trading Systems, Trading Technologies and DTN Trading.[5] Access is provided by 17 futures commission merchants.[6]

History

NFX was announced in March of 2015, and trading began on July 24th, 2015.

The exchange offered traders a fee holiday during its first nine months of operation.[7] [8]

The exchange launched with 25 energy futures and options contracts and added to this list over the following year. It now offers more than 110 products.[9]

By March 2016, more than seven million contracts had been traded on Nasdaq Futures with open interest of 700,000 contracts.[10]

Products and Services

NFX offers a variety of contracts but is mainly focused on energy futures. Its energy offerings include natural gas, oil, and electricity as well as freight and petrochemical financial futures and steel scrap futures.

Nasdaq announced on July 2, 2018 that it would launch a suite of interest rate products called DV01 U.S. Treasury Futures on NFX pending regulatory approval. The U.S. DV01 Futures will be cash settled On-The-Run U.S. Treasury futures contracts expressed as 100 minus the yield of the corresponding U.S. Treasury security, similar to the pricing of three-month Eurodollar interest rate futures.[11]

A full list of NFX contracts can be found here.

Key People

References

  1. Deutsche Boerse to sell ISE options exchange to Nasdaq. Reuters.
  2. Nasdaq sets July 24 date for Nasdaq Futures launch. MarketWatch.
  3. Nasdaq puts back energy launch - sources. FOW.
  4. Nasdaq to Launch Energy Futures Market. Wall Street Journal.
  5. Nasdaq Futures statistics. Nasdaq.
  6. Nasdaq Futures Market Showing Consistent Growth. Mondovisione.
  7. Nasdaq tempts energy traders with extended fee holiday. The Financial Times.
  8. About Nasdaq Futures. Nasdaq.
  9. NFX eyes hedges to rival incumbents. FOW.
  10. Nasdaq Futures Market Showing Consistent Growth. Mondovisione.
  11. Nasdaq Launches U.S. Treasury Futures Product. Nasdaq.
  12. Board of Directors. Nasdaq.