Single stock futures

Discussion in 'SA5' started by Edwin, Jan 24, 2015.

  1. Edwin

    Edwin Member

    Does anyone know why these were banned in USA until recently?
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    This gives a bit of background. It might have been uncertainty over the regulation of the instruments.
    http://en.wikipedia.org/wiki/Single-stock_futures
    But I would imagine they would also have made it easy for people to short sell shares (eg bank shares?) without coming under the short selling restrictions that exist in other markets.
     
  3. Edwin

    Edwin Member

    Thanks for the timely replies.
     

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