How come they didnt do a 1k or 10K share specifications for SS Futures?

R

rabmanducky

How come they didnt do a bigger share specification for ssfutures? I think they would have gotten more institutional interest if they have made them bigger. At 100 share futures, they might have well just bought in the money calls, or out right shares. The only reason I would use SSFs if I wanted to simulate a short sale on a hard to find share like GM.
 
I agree with you, bigger SSF's would be better. Maybe the good folks at ONE wanted the product to be more attractive to small-time investors. I guess I wouldn't care either way what the notional value of a SSF contract is if the product actually had decent liquidity. But the rub is, the liquidity isn't there partially because the notional is so small!
 
that is what I was alluding. You need the big institutional firms to create a liquid market first. That liquidity would then attract other players. If they did that strategy first, I think you would have a more robust ssfutures market.

Quote from ceftrader:

I agree with you, bigger SSF's would be better. Maybe the good folks at ONE wanted the product to be more attractive to small-time investors. I guess I wouldn't care either way what the notional value of a SSF contract is if the product actually had decent liquidity. But the rub is, the liquidity isn't there partially because the notional is so small!
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