|
PureBytes Links
Trading Reference Links
|
We already have single stock futures here, they are called synthetic futures
by buying a put and selling a call at the same strike on the options on a
stock, or visa versa.
Thus, you can effectively use futures-like equivalent to hedge or trade
stock, but it is costly and cumbersome. The time is now to change the laws
and open the U.S. markets to innovation before some offshore non-U.S.
exchange creates the market and attracts the volume.
I believe single stock futures would attract additional volume to stocks and
create additional arbitrage opportunities which will only help liquidity in
the underlying stocks. Combine that with a central time price order book for
stocks and I think you have some efficient markets and an up to date
regulatory structure in the making.
Regards,
John J. Lothian
Disclosure: Futures trading involves financial risk, lots of it!
|