Man Buys USFE

Date: Monday, July 31, 2006
Author: HFN Daily Report

Man Group has bought a stake in U.S. Futures Exchange, the company announced.

The transaction will allow the fund operator to increase its trading volume and expand its product offering to its brokerage clientele.

The USFE purchase will also let Man Group broaden its product reach to an existing client base rather competing with an established exchange.

Man Group paid $24 million for 70% of USFE owner Eurex and will inject $35 million into the business, the company said.

Deutsche BÖrse, developer of the Eurex network, will continue to operate the trading platform, Man Group said. Deutsche BÖrse founded Eurex with co-owner SWX Swiss Exchange.

Lazard New York advised Man Group in the transaction, the company said.

Man Group became the biggest futures dealer in the world in 2005 with the acquisition of the Refco brokerage unit.

Man Group has $55 billion under management.