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Pastimes : Triffin's Market Diary -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (190)	1/21/2002 8:13:54 PM
From: Triffin	Read Replies (1) \| Respond to of 869

BC: SINGLE STOCK FUTURES Monday January 21, 4:31 pm Eastern Time OneChicago lists shares for single stock futures CHICAGO, Jan 21 (Reuters) - OneChicago LLC, a joint venture of Chicago's three derivative exchanges that will offer futures on individual stocks, on Monday named 30 of the most high-profile stocks listed in the United States for its trading debut, scheduled for the spring . OneChicago, an alliance of the Chicago Mercantile Exchange Inc. (CME), the Chicago Board Options Exchange (CBOE) and the Chicago Board of Trade (CBOT), said it plans to roll out 50 to 75 security futures at its expected second-quarter launch. In a joint press release from the three exchanges, William Rainer, chairman and chief executive of OneChicago, cited customer demand for trading in notable liquid stocks. ``We are listening carefully to our customers regarding the selection of stocks to list for trading on day one,'' Rainer said. ``What we've learned is that the market is looking for well-known companies from key industry sectors such as telecommunications, finance, media and technology.'' The stocks include U.S. technology bellwethers Intel Corp. (NasdaqNM:INTC - news), International Business Machines Corp. (NYSE:IBM - news), Microsoft Corp. (NasdaqNM:MSFT - news), Cisco Systems Inc. (NasdaqNM:CSCO - news); global powerhouse General Electric Co. (NYSE:GE - news); U.S. financial giants Citigroup Inc. (NYSE:C - news), J.P. Morgan Chase & Co. (NYSE:JPM - news), and diversified health care giant Johnson & Johnson (NYSE:JNJ - news). OneChicago will use CBOEdirect as its electronic trading platform and implement a system of Lead Market Markers to provide two-sided markets for all products traded. Also vying for the U.S. business is Nasdaq Liffe Markets, an electronic derivatives alliance between the Nasdaq stock market and the London International Financial Futures and Options Exchange (LIFFE). Formed specifically to offer single-stock futures in the U.S. market, Nasdaq Liffe has said it will also initially list between 50 and 75 of the most liquid volatile stocks, such Intel, IBM and Cisco on LIFFE's CONNECT electronic trading platform for its expected launch, also in the second quarter. Single-stock futures represent agreements to buy or sell shares of individual companies at a given price on a set future date. The products were banned for 20 years in the United States for fear they would be susceptible to manipulation, although they have traded overseas for more than a decade with limited success. Two years ago, the U.S. Congress lifted a 1982 prohibition on the single-stock futures to allow U.S. futures exchanges to compete on an even footing with foreign rivals. But the launch was delayed from December until the end of March in the aftermath of the Sept. 11 attacks on the World Trade Center and the Pentagon. The Securities Industry Association and Futures Industry Association asked the House of Representatives Financial Services Committee to postpone the start of single-stock futures from December until March. The two trade groups said that the September attacks ``severely strained'' many financial firms' resources, and they also requested more time to study and comment on rules proposed by U.S. regulators. Single-stock futures would be jointly overseen by both the U.S. Securities and Exchange Commission and Commodities Futures Trading Commission.