Tuesday morning I was fortunate enough to meet with officials from the Nasdaq-Liffe (NQLX) Markets (single stock futures) at their Chicago offices. Coming into the meeting I was very skeptical about the merits and future (pardon the pun) of SSF's. However, after having spent two hours with Howard Simons and Charles Shaw I am absolutly convinced of about the potential for traders in these contracts. They will offer many unique opportunities never before available, especially as it relates to spread trading and risk arbs, which I feel will be the driving forces of this new product. SSFs are set to launch on NQLX on November 8th, which Shaw says is a firm date. In addition to the various futures contracts on single stocks, the NQLX will have exclusive listing rights on the QQQ and SPY, which should be trading on opening day. With Island no longer displaying its book in the QQQ, SPY and Diamond equities, this could provide a re-introduction of a lot of transparancy to this market. Brandon
brandon "In addition to the various futures contracts on single stocks, the NQLX will have exclusive listing rights on the QQQ and SPY, which should be trading on opening day. " perhaps you are mistaken? I went to a bloomberg / NQLX seminar last month and they did not mention nor do they list QQQ / SPY as SSF's they will be trading ... would be nice if I am mistaken and they do list them though seth
<i>perhaps you are mistaken?</i> No, I spoke to their head of economic and product development on Tuesday. They just announced Tuesday morning that they would be trading them. A month ago things had not been yet worked out. B
be putting put a press release then on it before the launch date meanwhile One Chicago is set to launch "narrow based indices" along with SSF's later this month
The narrow based indexes will be interesting, but none have ever been that successful, I dont see why these would be much different. Brandon