Single-stock perpetual contracts can now begin trading on qualifying U.S.-registered exchanges
This is a market worth at least a trillion dollars
This is hugely significant. Allowing this product is only the first step
More importantly, given the enormous market for single stocks, which institutions will help build the underlying liquidity?
Which platforms currently qualify?
At least 8 exchanges currently meet the CFTC’s requirements for dual registration
Of these, 4 have already submitted applications to launch this product
And 3 have already been approved to launch it. In fact, this news broke because a platform received approval
This market is still largely untapped. Platforms serving retail users and institutions providing liquidity to those platforms will be the most direct beneficiaries of this enormous market
On the liquidity side, two beneficiaries that come to mind are [Jump Trading] and [SIG]
Not only do both already make markets in other products through their existing businesses, but they also have the scale and credentials to do so
Institutions from traditional markets will also rush in to claim their share of the pie
This is the only major positive development I’ve seen in the past two months that could have far-reaching effects
This is a market worth at least a trillion dollars
This is hugely significant. Allowing this product is only the first step
More importantly, given the enormous market for single stocks, which institutions will help build the underlying liquidity?
Which platforms currently qualify?
At least 8 exchanges currently meet the CFTC’s requirements for dual registration
Of these, 4 have already submitted applications to launch this product
And 3 have already been approved to launch it. In fact, this news broke because a platform received approval
This market is still largely untapped. Platforms serving retail users and institutions providing liquidity to those platforms will be the most direct beneficiaries of this enormous market
On the liquidity side, two beneficiaries that come to mind are [Jump Trading] and [SIG]
Not only do both already make markets in other products through their existing businesses, but they also have the scale and credentials to do so
Institutions from traditional markets will also rush in to claim their share of the pie
This is the only major positive development I’ve seen in the past two months that could have far-reaching effects
