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Can you imagine what would happen if they were listed on the NY exchanges along
with OJ and some of the others. Ira
Dick Crotinger wrote:
> Well, if the futures conformed to current regulations, "insider trading"
> *would* be legal, and might even serve to offload the burdens (regulatory
> and administrative) that currently occur on plain old stock.
>
> Might even be MORE cost effective for the SEC and CFTC than what's currently
> in place.
>
> Dick Crotinger
>
> ----- Original Message -----
> From: Daniel Goncharoff <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Friday, March 03, 2000 9:40 AM
> Subject: [RT] Re: Stock futures.
>
> > Can anyone explain why you would even consider single stock futures
> instead of
> > just loosening margin requirements and eliminating the uptick rule? Plus
> consider
> > the administrative burden introduced to monitor insider trading, front
> running,
> > etc. in both the futures and the stocks at the same time (of course, we
> have that
> > same burden for options now, so it IS managable).
> >
> > Regards
> > DanG
> >
> > I4Lothian@xxxxxxx wrote:
> >
> > > 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!
> >
> >
> >
> >
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