Trading in single stock futures grows
By Katie Burns Medill News Service
Posted 12/5/2004
OneChicago LLC, the novel but lackluster exchange for single-stock futures, is celebrating its second birthday - along with a rise in trading, the closing of the competition and a succession in leadership.
Is it finally turning the corner?
Pete Najarian, president of Mercury Trading Inc., a lead market maker for the exchange, said stock futures are a "great product" that have languished. "That being said, we are starting to see the tide turn."
In October, OneChicago handled more than 100,000 contracts for shares of more than 100 companies. That's 53 percent higher than in October 2003 - though volume still lags way behind expectations.
Principal owners are the Chicago Board Options Exchange, Chicago Mercantile Exchange and Chicago Board of Trade.
OneChicago's only competitor, NQLX, an exchange belonging to Euronext NV, transferred most of its open contracts to OneChicago in October as part of preparations for closing this month.
And William Rainer, OneChicago's chairman, chief executive and largest private investor, stepped down from his administrative job at the end of November.
"He's tired of being a CEO," said Mary Haffenberg, communications director for OneChicago. "And he feels the product is on an upswing."
Peter Borish, senior managing director of business development, and now non-executive chairman, said he's pleased with progress but wants to raise the profile of OneChicago. "You're never happy," he declared. "You always want to grow faster." |
