Cantor Financial Futures Exchange

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Cantor Financial Futures Exchange

The Cantor Financial Futures Exchange ("CFFE") was a U.S. contract market launched in September of 1998 for the computer-based trading of US Treasury bond, ten-year note, five-year note, and two-year note futures contracts.[1] The CFFE is a dormant futures exchange as of January 1, 2004.[2]

CFFE was a joint venture of the New York Board of Trade and Cantor Fitzgerald & Co, which provided a proprietary electronic trading platform.[3]

The CFFE was formed via an agreement between the New York Cotton Exchange (NYCE), a wholly owned subsidiary of the New York Board of Trade, and CFFE, LLC, a subsidiary of Cantor Fitzgerald, LP (Cantor). CFFE trading was conducted on a trading system provided by Cantor that is the same trading system (the Cantor System) that another Cantor subsidiary, Cantor Fitzgerald Securities, LLC (CFS) operates as an interdealer-broker in the US Treasury securities market.

History

The New York Cotton Exchange was responsible for all of CFFE’s self-regulatory obligations and all CFFE trades were be cleared and settled by the Commodity Clearing Corporation (CCC), which is wholly owned by NYCE.

Trading on the Cantor system matched eligible CFFE orders based on price and time priority, according to a trade-matching algorithm. However, this algorithm also provided certain parties with limited execution trading privileges at a single price as a reward for providing liquidity or improving prices.

In February of 2000, CFFE applied to the CFTC for trading in five year agency notes and ten year agency notes.[4]

During the approval process for the CFFE, the exchange was opposed at a CFTC meeting by representatives of the AMEX and Haim Mendelson. Written statements were submitted by Chicago Board Brokerage, LLC and NYMEX.[5]

Products and Services

CFFE offered electronic trading of US Treasury bond, ten-year note, five-year note, and two-year note futures contracts rom 7:30 a.m. to 5:30 p.m., New York time, on each business day.

Key People

References

  1. CFTC Designates Cantor Financial Futures Exchange, Inc. as a Contract Market. CFTC.
  2. Cantor and NYBT Set Launch Of Treasury-Futures Exchange. Wall Street Journal.
  3. Trading Organizations - Designated Contract Markets (DCM). CFTC.
  4. Applications of the Cantor Financial Futures Exchange for Designation as a Contract Market in Futures on Five Year Agency Notes and Ten Year Agency Notes. Federal Register.
  5. Introduction. CFTC.