Single-Stock Futures, SSF

Single-Stock Futures, SSF

Single-Stock Futures (SSF), are futures contracts with the basic assets of which are shares of a certain company, usually in lots of 100 pieces. When sold such a contract, there is no transfer of rights to shares or dividends. Since the Single-Stock Futures are traded on margin accounts, i.e. with the use of leverage, they do not fall under the restrictions on short selling, which exist in share trading. Single-Stock Futures are traded on various financial markets around the world: the USA, great Britain, Spain, India, etc. South Africa currently has the largest in the world market of Single-Stock Futures (SSF), in which the average daily trading 700000 contracts.
In the United States in the 1980s was forbidden to include these futures to listing on all stock exchanges, because the commodity futures trading Commission and the Commission for the securities and exchange Commission were unable to decide which one of them will be a controlling body for these products. After the year 2000, adopted the Law on Modernization of the commodity futures, these two government agencies, in the end, have agreed on a section of their jurisdiction and futures on individual stocks (single-stock futures) were traded in the United States with 8 November 2002.
At that moment the trading of futures on individual stocks began on two stock exchanges, although one of these exchanges have since closed. The remaining market is OneChicago. This is a joint venture of three previously existing and located in Chicago stock exchanges: the Chicago Board options exchange, Chicago Board of trade exchange and the Chicago Mercantile exchange.
Futures on individual stocks are estimated market in accordance with the standard theoretical model of pricing for futures and forward contracts.