Some Policy Implications of Single-Stock Futures
8 Pages Posted: 28 Feb 2001
Date Written: 2001
Abstract
On Dec. 15, 2000, Congress approved the use of single-stock futures. This essay analyzes some of the policy issues related to that approval. In particular, I discuss (1) the benefits and costs of margin rules applicable to single-stock futures, (2) the amendments to the securities laws to cover single-stock futures in areas such as insider trading and market manipulation, and (3) some potential benefits associated with the use of single-stock futures to avoid restrictions on shorting stock (e.g., the elimination of so-called "parent-subsidiary" anomalies, as when 3Com was worth less than Palm even though 3Com owned 95 percent of Palm's stock).
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Single Stock Futures: Selection for Listing and Trading Volume
By James S. Ang and Yingmei Cheng
-
Financial Innovations and Market Efficiency: The Case of Single Stock Futures
By James S. Ang and Yingmei Cheng
-
Financial Innovations and Market Efficiency: The Case for Single Stock Futures
By James S. Ang and Yingmei Cheng
-
The Impact of Universal Stock Futures on Feedback Trading and Volatility Dynamics
By Frankie Chau, Phil Holmes, ...
-
Single Stock Futures as a Substitute for Short Sales: Evidence from Microstructure Data
By Bartley R. Danielsen, Robert A. Van Ness, ...
-
Testing for Feedback Trading in Index Futures: A Dynamic CAPM Approach
-
Cross Hedging with Single Stock Futures
By Chris Brooks, Ryan J. Davies, ...
-
A Comment on the Behavior of the Greek Mid-Cap Futures Market
-
After Effects of Global Financial Crisis on Indian Derivatives Market
By Narain
-
Migration of Trading and the Introduction of Single Stock Futures on the Underlying U.S. Stocks
By André Gygax, Thomas Henker, ...
