New York Futures Exchange
The New York Futures Exchange was a start-up exchange created by the New York Stock Exchange in response to the success and growth of the futures industry in financial products.
The NYSE in 1972 had decided not to a launch a stock options exchange in response to the Chicago Board of Trade's launch of the Chicago Board Options Exchange and the start of options trading at the American Stock Exchange. Later, the CBOT introduced trading on GNMA and Bond futures. At the time of the planned launch, the CBOT was trading 13,000 30-Year Bond and 9000 GNMA futures contracts per day, and NYSE hoped NYFE could get a 10 percent market share within nine months.
The NYFE initially sought to trade contracts on five foreign currencies, U.S. Treasury bills and U.S. Treasury bonds
After the launch of stock index futures in 1981, the NYFE traded mostly NYSE Small Composite Index and Reuters CRB Index futures.
The NYSE had initially planned on selling about 400 memberships to current NYSE members and 200 to non-members. However, eventually 980 NYSE members and 595 nonmembers applied for seats on the new futures exchange that cost $20,0000 for non-members and $10,000 for members.
The New York Futures Exchange launched futures on the NYSE composite index in May, 1982.
NYFE began as a subsidiary of the New York Stock Exchange (NYSE) in 1980 and was sold to the New York Cotton Exchange (NYCE) in 1994. The exchange was subject to a Rule Enforcement Review by the Commodity Futures Trading Commission (CFTC) in 1997, although no disciplinary procedures followed. A year later the NYCE and the Coffee, Sugar and Cocoa Exchange (CSCE) merged to become the New York Board of Trade (NYBOT), and the NYFE became part of that company. NYBOT was acquired in January, 2007 by the IntercontinentalExchange (ICE), which changed NYBOT's name to ICE Futures.
Up until it was subsumed into NYBOT, the NYFE had been trading mostly small-cap and more niche-market futures contracts, including e-mini Russell 1000 and Russell 2000, NYSE Small Composite Index and Reuters CRB Index.
On Aug. 1, 2003 NYFE's active contracts were transferred to NYCE and then in June 2004 to NYBOT itself, eliminating both exchanges. The NYBOT defined the NYFE's products as 'index contracts' to allow for delisting them and then exchanged all NYFE memberships for 'FINEX' memberships. These allowed former NYFE allow members to trade both NYBOT's 'financial contracts' and the NYFE's 'index contracts.'
- ↑ NYSE Plans to Start Financial Futures Trade Around April 1. New York Times.
- ↑ The Globalization of Stock Index Futures: A Summary of the Market and Regulatory Developments in Stock. Northwestern University.
- ↑ Trading Organizations. CFTC.
- ↑ CFTC Notifies the New York Futures Exchange of the Results of a Rule Enforcement Review. CFTC.
- ↑ NYFE Exchange Futures List. CSIdata.com.
- ↑ NYBOT To Consolidate New York Futures Exchange. NYBOT.