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Should have read "the CFTC is an ineffective regulator for retail
customers"
Earl
----- Original Message -----
From: "Earl Adamy" <eadamy@xxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, March 03, 2000 10:21 AM
Subject: [RT] Re: Stock futures.
> The futures exchanges want to peddle single stock futures because it
> will allow them to end-run all the margin requirements and regulation
> imposed on the NYSE and NASDAQ. Compared to the SEC, the CFTC is an
> effective regulator for retail customers, nor is there any equivalent
to
> the SIPC. I can imagine the consequence of hot stocks being available
in
> futures. Personally, I think the futures exchanges should have a bit
> more leeway in creating futures for some of the sector and other
> specialty indexes and the prohibition on individual stocks should be
> left in place.
>
> Earl
>
> ----- 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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