[RT] Re: More on Futures on stock

[Daniel Goncharoff <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>]

I think the threat of this is small. It will move liquidity into the
derivative market, and out of the cash, in the same way that index
market moves today are led by the futures. As long as arbitrage stays
relatively inexpensive, this should have no long term effect - - the
money isn't really going away, just changing markets.

It does present an opportunity to take advantage of a cash settled
derivative at expiration, however, which is why I would stay away from
those on single stocks. (Think of the games that could be played on
cash-settled equity options today.)

Regards
Dan Goncharoff