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To: Mike Gordon who wrote (13741)	6/30/2001 5:46:13 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

Mike, The only thing I have heard that sounds connected to what you heard is a movement to begin trading futures on equities instead of only indexes and commodities. Futures are different from options in that they do not have time premium. The difference in price between a futures contract and the underlying index is just the cost of money over the life of the contract. Futures offer no protection against loss from a move in the underlying, but they afford incredible leverage. If it happens, futures contracts will compete with existing instruments, but I am inclined to think they will dip into the equities market more than options. Not my area of expertise, so I wouldn't take that to the bank. Dan

To: Mike Gordon who wrote (13741)	7/1/2001 10:14:13 AM
From: Herm	Read Replies (1) \| Respond to of 14162

Thanks for sharing that information on that discussion. On the subject of Mr Cashin's comments. Take a look around the Internet and find as many futures or commodities trading sites. There are few as compared to the equities sites because of the mass popularity of computer linked small investors. I can't imagine the big boys giving up such a lucrative equities free market place. If anything, I would imagine that ETFs that trade like stocks may weed out some of those weak college prep 30-year olds fund managers that just experienced their first bear market meltdown (with the technology stocks) and the 5000+ companies that just take people's money and give a below average return. That would be more realistic than Mr. Cashin's opinions.

To: Mike Gordon who wrote (13741)	7/1/2001 6:22:43 PM
From: OX	Respond to of 14162

Single Stock Futures has been discussed a little bit here on SI. it should be real interesting to see them come out. you can probably do a search on SSF on SI and dig up some old posts. initially their margin reqts will be quite high to match existing margin for stock, otherwise, I would think stock traders would flock to SSF for their higher leverage. nevertheless, regardless of the margin reqts, a big advantage to SSF is for those who want to short... no uptick rule and no worries about finding shares to borrow. note that futures margin is much different than using margin on stocks. with futures contracts, margin is typically 5-10% of the underlying, and is used as collateral, not as actual amount that is "borrowed".