Background | FIF Analysis | Timeline

Background
When Single Stock Futures were first introduced, FIF was at the forefront of helping member firms stay abreast of developments through information sharing and issue identification as well as maintaining the necessary structure for organization and planning across industry participants. Organizations involved in the effort founded the SSF committee and included: SIA/FIA Single Stock Futures Steering Committee; Exchanges planning to trade single stock futures in the U.S.; Clearing organizations; Broker/Dealers; FCMs; Service Bureaus and Market Data Vendors. The scope of the SSF committee included:

FIF Analysis

The committee and its working groups produced a number of documents that helped identify issues and recommend implementation formats. See downloads below.

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Single Stock Futures Timeline of Events

10/23/02 - CME publishes Clearing Codes For OneChicago Products http://www.exchange-handbook.co.uk/news_story.cfm?id=40004

10/21/02 - OneChicago Postpones Launch to Nov. 8
OneChicago, LLC announced that it intends to postpone the launch of security futures trading to Nov. 8, pending regulatory approval. Full Press Release

10/7/02 - NFA releases SSF Risk Disclosure Statement

10/7/02 - OneChicago Amendment to Market Data Distribution Rules
OneChicago and CME have agreed that use and distribution of OneChicago data may be covered by an amendment to the CME Information Distribution Agreement (the Agreement) and the extension of Schedules 1 and 2 of the Agreement to include OneChicago market data. More...

10/1/02 - OneChicago Final Margin Rules Published
Click here to read rules...

10/1/02 - NQLX Final Margin Rules Published
Click here to read rules...

9/26/02 - As Single-Stock Futures Draw Closer, Diversification Has Become a Key Theme
Wall Street & Technology
Click here to read full article...

9/24/02 - OneChicago Announces Oct. 25 Launch Date And Transaction Fee Schedule
OneChicago, LLC today announced that it intends to launch security futures trading on Friday, Oct. 25, 2002, subject to certain regulatory approvals. The Exchange also published its transaction fee schedule. Full Press Release...

9/19/02 - NQLX Dress Rehearsals
Nasdaq Liffe Markets, LLC (NQLX) has completed its interim dress rehearsal test period. NQLX has been testing its trading system, LIFFE CONNECT, post-trade administration, clearing operation, regulatory operations and the handling of corporate events with member firms on a weekly basis since March 2002. Full Press Release...

9/12/02 - NQLX Provides Guidance on SSF Registration Issues for Broker Dealers
This publication attempts to provide guidance for Broker Dealers on the issues surrounding notice registering as a Futures Commission Merchant (FCM).

9/10/02 - OneChicago Announces Publication of its Rulebook
The rulebook contains OneChicago's official rules as of Sept. 9, 2002 regarding Exchange membership and governance, access to OneChicago, trading procedures, Exchange operations and business conduct.
Click here to read OneChicago's press release regarding the rulebook:
http://www.onechicago.com/060000_press_news/press_news_2002/09092002.html
Click here to download a copy of the rulebook from OneChicago's Web site:
http://www.onechicago.com/020000_about/oc_020400.html

9/5/02 - Nasdaq Liffe Markets Has Exchange Rulebook Approved By The CFTC

9/1/02 - NASD web page on continuing education requirements for security futures
http://www.nasdr.com/futures.asp

9/1/02 - SEC Finalizes Margin Rules for Single Stock Futures
Read the press release by the SIA/FIA...

7/24/02 - SEC OPEN MEETING - WEDNESDAY, JULY 24, 2002 - 2:30 P.M.
During the open meeting scheduled for Wednesday, July 24, 2002, the Commission will consider whether to adopt rules governing customer margin for security futures. The rules would be adopted jointly with the Commodity Futures Trading Commission pursuant to Section 7(c)(2) of the Securities Exchange Act of 1934 (Exchange Act), which, among other things, requires that the customer margin requirements for security futures be consistent with the margin requirements for comparable option contracts traded on any exchange registered pursuant to Section 6(a) of the Exchange Act and provide for initial and maintenance margin levels that are not lower than the lowest level of margin, exclusive of premium, required for comparable exchange-traded options.

7/2/02 - CFTC Publishes Margin Rules for Single Stock Futures
The rules will be published in the Federal Register and comments will be invited. PDF file of rules is available on link below:
http://www.cftc.gov/files/opa/press02/opamarginrulesfrnotice7_2clean.pdf

5/23/02 - CFTC Cash Settlement and Regulatory Halt Requirements for Security Futures Products -- http://www.cftc.gov/files/opa/press02/opatradinghalts.pdf

5/15/02 - Proposed SEC Section 31 Fees on Single Stock Futures
http://www.sec.gov/rules/proposed/34-45854.htm

4/30/02 - OneChicago, Options Clearing Corp. and Chicago Mercantile Exchange Inc. Sign Clearinghouse Agreements
OneChicago, LLC, The Options Clearing Corporation (OCC) and Chicago Mercantile Exchange Inc. (CME) today announced that they have signed official clearinghouse agreements for security futures. Click here for full article.

4/25/02 - Island Futures Launches Website
For more information, go to http://www.island.com/futures/

1/22/02 - OneChicago Announces First 30 Listings For Single Stock Futures Trading http://www.exchange-handbook.co.uk/news_story.cfm?id=37415

1/15/02 - Island Futures Looks to Begin Trading Security Futures
Island Futures, a subsidiary of Island ECN Inc. outsourced its self-regulatory responsibilities to the National Futures Association, and awaits approval by the Commodity Futures Trading Commission as a designated contract market for security futures. Click here for full story...

1/8/02 - NQLX and BOTCC sign agreement on processing of "give ups". Press release available on www.nqlx.com .

1/8/02 - OneChicago selects CBOEdirect as its match engine
http://www.cboedirect.com/news/releasearchive/20020108.htm

12/27/01 - NQLX Ops Circular 1.01 on LIFFE Trade Registration System

12/11/01 - The CFTC approved OCC's application to clear and settle commodities futures and options.

12/1/01 - Chicago Single-Stock Futures Joint Venture Selects Name -- Appoints Peter F. Borish as Senior Managing Director of Business Development
http://www.exchange-handbook.co.uk/news_story.cfm?id=36868

12/1/01 - Extension of Comment Period on Rule Proposals for Single Stock Futures
The SEC and and CFTC approved a thirty day extension of the public comment period from November 5, 2001 to December 5, 2001.
For text of press release go to http://www.sec.gov/news/press/2001-125.txt
Text of comment period extension is available at http://www.sec.gov/rules/proposed/34-44996.htm

12/1/01 -- NQLX preliminary specifications available on website http://www.nqlx.com/nqlx/ssf/Contractspec.stm

11/22/01 -- Nasdaq Liffe Markets FEED (NMF) Technical Specification DRAFT Press Release on Extension of Comment Period on Rule Proposals for Single Stock Futures
The SEC and and CFTC approved a thirty day extension of the public comment period from November 5, 2001 to December 5, 2001.
For text of press release go to http://www.sec.gov/news/press/2001-125.txt
Text of comment period extension is available at http://www.sec.gov/rules/proposed/34-44996.htm

9/25/01 - U.S. Proposes Margin Rules for Single Stock Futures
On September 25, 2001 U.S. stock and futures regulators said they have approved joint proposed rules setting margin requirements for future contracts based on single stocks, a major step toward meeting a December deadline for trading in the new products to begin. Congress last year voted to lift a 1982 U.S. ban on so-called single-stock futures, specifying they could begin trading on a "principal-to-principal" basis last month, with full retail trading due to start on Dec. 21. Amid concerns about the incomplete regulatory framework for the products, however, U.S. stock and futures exchanges have yet to list them and had expressed some doubts that they could do so by year-end unless the gaps were filled. While the margin rules may clear up one key are of uncertainty, the agencies --along with the U.S. Treasury Department --still have to tackle the thorny of tax treatment for single-stock futures. http://www.sec.gov/news/digest/09-27.txt

9/05/01 - SEC Staff Legal Bulletin issued on Listing Standards for Trading Single Stock Futures Products: http://www.sec.gov/interps/legal/mrslb15.htm

8/1/01 - Nasdaq Liffe Markets (NQLX) and the Options Clearing Corp (OCC ) confirm that they have signed a clearinghouse agreement for single stock futures. OCC will provide processing, settlement and guarantee services for contracts of Nasdaq Liffe Markets. OCC will also optimize offsets between futures and options through its TIMS portfolio risk management system. www.exchange-handbook.co.uk/news_story.cfm?id=36124

8/1/01 - Hong Kong announced implementation of single stock futures trading beginning in October. The first wave of contracts is to include futures on five U.S. securities. www.exchange-handbook.co.uk/news_story.cfm?id=36113

8/1/01 - Single Stock Futures Delayed until Details are Settled
The launch of principal-to-principal trading of single stock futures has been delayed as regulators, industry groups and Congress continue to piece together the details of the contracts. In addition, the IRS has yet to release its tax treatment plan for the products. While the CFTC and the SEC, which will jointly regulate the products - have already adopted new rules prescribing the requirements for the first two waves of launches, they continue to meet to discuss the details. Still at issue, for example, is whether futures-style margin requirements or an insurance-style system currently used with securities will be used to protect customers.

A joint proposed rule on cash settlement and regulatory halt requirements for security futures products in available on www.sec.gov/rules/proposed/34-44743.htm

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