single stock future

Single Stock Future

A derivative in which the buyer and seller agree to exchange one stock at a certain price at a certain time. Single stock futures are bought on margin and, because they are futures and not actual stock, one may short sell single stock futures without being subject to the downtick rule. Single stock futures are usually traded in lots of 100 at a time. South Africa contains the largest market for single stock futures, though they are traded worldwide. In the United States, they are usually traded on OneChicago LLC. See also: Commodity Futures Modernization Act of 2000.

single stock future

A contract in which opposite parties agree to buy and sell a stock at a set price on a certain date. Unlike a stock option in which the owner of the option has a right to either buy (call) or sell (put), both parties in a single stock future contract have an obligation. Trading in single stock futures was pioneered in Europe on the London International Financial Futures and Options Exchange and was banned in the United States until repeal of the Shad-Johnson Accord in 2000. See also Nasdaq Liffe Markets, OneChicago LLC.
References in periodicals archive ?
17 percent for single stock futures and for index futures, they are 0.14 percent, and this compares well with the 2 percent for trading shares.
Futures trading on an equity index and single stock futures have come to the Nairobi Securities Exchange since the NEXT deriva- tives market launched on 11 July.
Finally, ICE offers a full set of futures and options on a range of MSCI and FTSE indices, as well as a range of single stock futures and options, which permit customers to hedge against exposure to market volatility.
Nasdaq Dubai launched single stock futures trading on 12 Saudi companies last month.Ringing the opening bell at Nasdaq Dubai MarketSite to celebrate the launch of the index futures, Waqas Samad, chief executive of FTSE Russell, said: "Nasdaq Dubai's futures contracts on the FTSE Saudi Arabia Index give investors around the world an attractive new route to access the important Saudi Arabian market.
R2G is an authorised market data redistributor for all US based stock, options, futures and single stock futures exchanges, as well as a growing number of FX market centres.
The introduction of the MSCI UAE Index futures comes one week after Nasdaq Dubai launched single stock futures trading on 12 Saudi Arabian companies.
We look forward to further developing the market in coming months and years in cooperation with market participants." With more UAE companies added since then, plus today's addition of the Saudi contracts, Nasdaq Dubai now offers single stock futures on a total of 29 leading regional companies.
Nasdaq Dubai's futures will enable investors to make gains whether share prices are rising or falling and the single stock futures will be traded on Nasdaq Dubai in Saudi riyals, which is the currency of the underlying shares.
Asked about the listing, Ali said: "We would definitely offer single stock futures in it."
MANAMA: GFH Financial Group yesterday announced the inclusion of Single Stock Futures Contracts on the Group's shares available for trading on Nasdaq Dubai's equity futures market with effect from January 16.
20 (BNA): GFH Financial Group has announced the inclusion of Single Stock Futures Contracts on the Group's shares available for trading on Nasdaq Dubai's equity futures market with effect from January 16.

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