Magazine article Modern Trader

SSF Launch Dates on the Books. (Ding! Round One)

Magazine article Modern Trader

SSF Launch Dates on the Books. (Ding! Round One)

Article excerpt

By the time you read this, trading of single stock futures--the crowning goal of two years of successes, failures and anticipation--should be realized.

Maybe.

The most anticipated new product in the history of futures trading was slated to start trading at OneChicago on Oct. 25, barring any unforeseen regulatory glitch.

OneChicago's main competitor, Nasdaq Liffe Markets (NQLX), was more conservative, waiting for its margin rules to be published by the Securities and Exchange Commission (SEC) in the Federal Register on Sept. 30--OneChicago's were published a day later--and announcing a Nov. 8 launch date.

For OneChicago to make its date, the SEC would have had three days to approve the rules for the Chicago joint venture following the 21 -day waiting period required after publication. That would involve the SEC expediting its approval procedures--not something that it has shown a tendency toward throughout this process.

NQLX's date allows the SEC the full 35-day approval process but does not provide for additional time if the SEC requests changes.

"It is a much more cautious launch date and one [preferred] by the firms. We surveyed our firms and the majority looked for the later date," says NQLX President Bob Fitzsimmons.

FEE STRUCTURE

Perhaps of more interest to potential security futures users--who undoubtedly will enter the market cautiously--are the fee structures of the competing exchanges.

OneChicago's standard rate will be 30Cents for single stock futures and 45Cents for narrow-based indexes. …

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