NEW
YORK, June 26, 2024 /PRNewswire/ -- Katten
announced today that its client, ForecastEx, has been licensed both
as a designated contract market (exchange) and derivatives clearing
organization (clearing house) by the Commodity Futures Trading
Commission (CFTC), effective June
25.
Owned by Interactive Broker Group, Inc. and IBG Holdings LLC.,
ForecastEx is a new model of a derivatives exchange, involving the
matching of two bids as opposed to the traditional matching of a
bid and an ask, as well as a new model of clearing, involving the
settlement of trades by the clearing house, instead of the clearing
house acting as the buyer to every seller or the seller to every
buyer through novation.
The exchange will list and settle event contracts initially
involving economic and climate-related indices. It expects to begin
operation on July 8, and will feature
a combined exchange and clearing fee of one
cent.
"We are excited to launch our exchange, which we believe will be
exceptionally customer-friendly, and proud to introduce a new model
of derivatives exchange," said David
Downey, CEO of ForecastEx, an intermediated exchange relying
on future commission merchant members to handle customers who
desire to trade its event contracts on a fully collateralized
basis. "We believe our model may serve as a useful precedent for
other exchanges and clearing houses. We appreciate Katten's
assistance in guiding us through the CFTC's approval process."
Daniel J. Davis, co-chair of
Katten's Financial Markets and Regulatory practice, who advised the
exchange, said, "We are honored to have been able to work with the
creative leadership of ForecastEx and CFTC staff to help obtain the
necessary CFTC registrations."
Katten is a full-service law firm with approximately 700
attorneys in locations across the United
States and in London and
Shanghai. Clients seeking
sophisticated, high-value legal services turn to Katten for counsel
locally, nationally and internationally. The firm's core areas of
practice include financial markets and funds, corporate, insolvency
and restructuring, intellectual property, litigation, real estate,
structured finance and securitization, transactional tax planning,
private credit and private wealth. Katten represents public and
private companies in numerous industries, as well as a number of
government and nonprofit organizations and individuals.
For more information, visit katten.com.
Contact:
|
Jacquelyn Heard
+1.312.902.5450
jackie.heard@katten.com
|
|
Leonor
Vivanco-Prengaman
+1.312.577.8371
leonor.vivanco-prengaman@katten.com
|
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SOURCE Katten Muchin Rosenman LLP