Just curious of SSF for firms

R

rtharp

Are there any firms out there right now that it is possible to deliver stock for Single Stock futures. Will they then allowing true margin to be allowed if I'm fully hedged?

Say SSF but short the cash? or Short SSF but long the stock.

So far I've only heard of having to close out my position before expiration.
 
I bought two BRCD April contracts in March. I forgot they were Aprils I guess. Last week I found I had 200 shares of BRCD in my account.

I have to presume that if I had been short 200 shares before expiration, that I would have been flat after the expiration had delivered 200 shares to my account.

(Interactive Brokers account)

p.s. BRCD has come up from below $4 a share to over $6 in the last two months. And nobody seems to trade their SSF. They're always available to trade though.
 
Quote from rtharp:

Are there any firms out there right now that it is possible to deliver stock for Single Stock futures. Will they then allowing true margin to be allowed if I'm fully hedged?

Say SSF but short the cash? or Short SSF but long the stock.

So far I've only heard of having to close out my position before expiration.
More...

At IB you do not have to liquidate before expiration and physical will be delivered.

The margin side has to do with what account the SSF's are held in. If securities, they will be offset by the cash. However, most firms are putting the SSFs in commodity accounts as this gives greater margin (5:1) and one would not be subject to the PDT rules.
 
You must log in or register to reply here.
Back
Top