A single stock futures (SSF) contract is a standard futures contract with an individual stock as its underlying security. Each contract typically controls 100 shares of stock. Unlike owning the actual underlying shares, single stock futures do not convey voting rights or dividends. Single-stock futures. In finance, a single-stock future (SSF) is a type of futures contract between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange. Single-stock futures are typically traded on margin. Brokers generally require only 20% of the value of the underlying to be put up as collateral. Thus these securities can easily be used to create leveraged positions. Experiences elsewhere indicate that single-stock futures are a solution in search of a problem. But let's roll out the products and let the rewards devolve to the most innovative and sophisticated Specifically, single-stock futures are a way to invest in securities at a lower interest rate than those that many retail investment banks offer. If investors want to borrow on margin, the interest rate is built into the price of a single-stock futures contract, so they end up paying a lower rate. While major investment brokerage firms charge up to 10-percent interest on margin loans, investors in single-stock futures pay closer to six percent. Since maintenance margin for single stock futures is the same level as the initial margin, the margin balance of $100 remaining is below the maintenance margin of $200. You receive a margin call from your broker to top up: Variation Margin = $200 - $100 = $100 Topping up $100 will bring your margin balance back up to $200,
The CFMA lifts the prohibition on single-stock futures and narrow- margin is overseen by the SEC, while the stock index futures margin is overseen by the Initial margin requirements are based on 99% value at risk over a one day time horizon. However, in the case of futures contracts (on index or individual securities) A broker may ask from his clients a rate higher than the one determined by MX. Margin rates for futures contracts are published daily on the Regulatory Division Thus, these contracts will never be a 100% perfect analog to the shares themselves. Single-stock futures are typically traded on margin. Brokers generally require
Single Stock Futures (SSFs) are futures contracts on individual shares (stocks). A futures contract is a legally binding agreement that gives you the right to buy or sell an underlying asset at a fixed price on a future date. SSFs are traded on an exchange, in South Africa’s case, the JSe. Synthetic Secured Lending Using Single Stock Futures. Single stock futures are ideally suited to replace "agreements" in equity repo and securities lending transactions. All transactions at OneChicago are cleared through the AA+ rated Options Clearing Corporation. Single Stock Futures shall be traded during such hours, as determined by the Exchange. 34102.D. Minimum Price Fluctuations The minimum price fluctuation for each Single Stock Future shall be equivalent to $0.01 per share. 34102.E. Delivery Months Single Stock Futures shall be traded for delivery in such months, as determined by the Exchange. The Final Rules provide that all futures accounts of the same regulatory type or classification that carry security futures shall be considered a single account for purposes of the Regulation. 136 The Final Rules also permit a securities futures intermediary to further consolidate all futures accounts of the same regulatory classification or account type, regardless of whether they carry security futures, for purposes of determining whether the required margin for all of a customer's futures
Margin accounts: US stocks, index options, stock options, single stock futures, and mutual funds. All accounts: Forex; bonds; Canadian, European, and Asian Individual Equity Products. Home > Products Equity Products. Single Stock Futures; Single Stock Options Maintenance Margin Rate : 4.70~32.70%. Trading
Since maintenance margin for single stock futures is the same level as the initial margin, the margin balance of $100 remaining is below the maintenance margin of $200. You receive a margin call from your broker to top up: Variation Margin = $200 - $100 = $100 Topping up $100 will bring your margin balance back up to $200, Single Stock Futures: An Alternative to Securities Lending David G Downey CEO OneChicago, LLC Introduction Securities Lending is primarily a back-office function that effectively is an over-the- counter derivative transaction. Eurex Exchange is your one-stop-shop for European Single Stock Futures from +20 countries. Our offering comprises more than 850 futures on the most popular European underlyings. Our offering comprises more than 850 futures on the most popular European underlyings. Synthetic Secured Lending Using Single Stock Futures. Single stock futures are ideally suited to replace "agreements" in equity repo and securities lending transactions. All transactions at OneChicago are cleared through the AA+ rated Options Clearing Corporation. As if a standard futures contract — those that control an underlying commodity, stock index, currency, or interest rate instrument — weren’t esoteric enough for most, there are also contracts that control individual stocks. These are called single stock futures, or in their abbreviation (SSFs). A single stock futures (SSF) contract (or security futures contract) is a contract to buy or sell a single security or a narrow-based security index. The standard contract size is 100 shares of underlying stock. Unlike traditional futures contracts, single stock futures are taxed as a security,