Success is hardly assured

Exchanges around the world have launched single stock futures products over the past 18 months, but their debut has been most eagerly awaited in the US. While they will have some valuable benefits, it remains to be seen if they will actually be traded.

US derivatives exchanges are pinning their hopes on a product that has been illegal there for nearly two decades: single stock futures. These allow investors to take leveraged long- or short-positions on single stocks or on narrowly-based stock indexes. Canadian, UK and Hong Kong derivatives exchanges have all launched futures on US stocks in the past two years – with tepid results – seeking to grab market share before US lawmakers removed their prohibition on the instruments. US Congress