Single Stock futures are a type of futures contract where the underlying is the stock of an individual company, such as Tesla or Microsoft. This new suite of contracts is now available for trading.

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Single Stock futures are security futures products that are jointly regulated between the SEC and CFTC, unlike broad-based Index futures which are regulated solely by CFTC.

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CME Group has listed a number of broad-based Equity Index futures and options on Globex, beginning with E-mini S&P 500 futures in 1997. Single Stock futures complement the existing futures and allow traders to express their view on an individual stock, rather than a broad-based futures contract such as E-mini S&P 500 or Nasdaq-100 futures. The Single Stock futures listed are the key constituents of these indices and the ecosystem.

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Similar to broad-based Index futures, the theoretical price of a Single Stock futures contract is determined by calculating the fair value. A trader must account for all of the costs and benefits of holding the underlying stock until the futures expiration date. This includes the ordinary dividends, which need to be priced into the basis along with the all-in financing rates and time to maturity.

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55 Single Stock futures contracts (sized at 100 shares) and 22 Micro-sized contracts (sized at 10 shares) are available for trading. Stock names are available in this fact card.

The new suite totals over $200B in average daily notional volume. By index weighting, they comprise in the range of 55% – 65% of the S&P 500 and Nasdaq-100. 

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Yes, CME Group would consider growing the Single Stock futures ecosystem based on feedback and subject to CME listing standards.

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CME

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Please visit cmegroup.com/ssf to find more details and the contract specs.

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The notional value of a CME-listed Single Stock futures contract will be dependent on the price of the futures contract. 

• Larger-sized Single Stock futures will have a contract multiplier of 100 shares x futures price. 

• Micro Single Stock futures will have a contract multiplier of 10 shares x futures price.

For example, if a NVIDIA futures contract is traded at $200, the notional value would be $20,000.

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Quarterly contracts for two consecutive quarterly months (Mar, Jun, Sep, Dec) are listed for trading. Based on client demand and regulatory reviews, CME Group would consider introducing additional expirations. 

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Yes, the minimum block threshold is 50 contracts for the larger-sized Single Stock futures. Micro Single Stock futures are not block-eligible. 

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Yes, all of these transaction types are available for the larger-sized Single Stock futures contracts. They are currently unavailable for Micro Single Stock futures.

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These contracts will follow the same trading hours as Equity Index futures at CME Group. Markets will be 5:00 p.m. CT – 4:00 p.m. CT Sunday – Friday with a one-hour maintenance window from 4:00 CT – 5:00 p.m. CT each day.

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Single Stock futures are financially settled in U.S. dollars, with the final settlement price being determined using the official closing price of the underlying stock at the respective primary listing exchange on the expiration date.

Thus, trading terminates at 3:00 p.m. CT on the third Friday of the contract month.

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Access more technical documentation for Single Stock futures including corporate actions, halts and testing.

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In addition to the technical operational document linked in the preceding question, view a high-level guide for investors to understand how corporate actions will be addressed.

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View the SER with Single Stock futures fee details. View the fee schedule for the latest information.

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Single Stock futures are margined under the SPAN framework. 

CME Clearing follows its established policies and procedures in determining margin levels for Single Stock futures, but, as required by CFTC and SEC regulations, initial and maintenance margin requirements for long or short outright Single Stock futures positions must be, at a minimum, 15% of the current market (notional) value of the futures contract. 

Additionally, margin requirements for offsetting positions in different contract months of the same Single Stock futures contract (i.e., calendar spread) must be, at minimum, 5% of the current market value of the contract leg with the higher market value.

No additional margin offsets are currently provided. 

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Although it is possible to carry Single Stock futures in either a futures or securities account at the futures commission merchant (FCM)/broker-dealer (BD) level from a legal perspective (assuming it is fully registered in both capacities), CME-listed Single Stock futures will be available only in futures accounts at this time for operational reasons. Note that FINRA Rule 4210 (Margin Requirements) will not apply to Single Stock futures carried in a futures account.

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International investors/market participants must ensure compliance with applicable law including tax obligations arising from the application of § 871(m) Internal Revenue Code. CME Group does not provide legal or tax advice to international investors (or any other person) in Single Stock futures and advises such investors to check with their own legal/tax counsel or via their brokers. 

Intermediaries providing services to international investors in connection with Single Stock futures should consult CME Rulebook Chapter 9 Rule 990. This Rule requires relevant intermediaries to satisfy a number of conditions, including but not limited to: (i) entering into a qualifying intermediary agreement with the Internal Revenue Service (“IRS”) under which the intermediary assumes responsibility for reporting, collecting and remitting withholding taxes; (ii) maintaining qualified derivatives dealer (“QDD”) status with the IRS; and (iii) complying with procedures promulgated by the IRS from time to time in connection with the reporting, collection or remittance of withholding taxes. Intermediaries satisfying the conditions specified in CME Rulebook Chapter 9 Rule 990 should put in place adequate arrangements to ensure continued compliance with their obligations as QDD, e.g., by requiring their customers to complete appropriate documentation such as W-8-BEN/W-8-BEN-E forms.

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For further details, please see Acceptable Collateral.

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During the hours of 9:30 a.m. ET to 4:00 p.m. ET on regular trading days, or 9:30 a.m. ET to 1:00 p.m ET on shortened trading days, both Market Wide Circuit Breakers (MWCBs) and Individual Securities Circuit Breakers will apply.  

When level 1, 2 or 3 MWCBs are declared due to the S&P 500 Index having fallen 7%, 13% or 20% for the day, all Single Stock futures will be halted for trading. Additionally, if a regulatory halt has been imposed on the underlying stock of a Single Stock futures contract by its primary listing exchange, the corresponding Single Stock futures contract will also be halted for trading. Trading of futures will resume when trading of the halted stock(s) in its (their) primary market resumes.

For hours outside of those listed above, there will be no price limit for Single Stock futures. However, Dynamic Circuit Breakers (DCBs) will apply. Please consult the FAQ for more information on how DCBs functions. 

Additionally, when E-mini S&P 500 (ES) futures are lock-limited at their overnight price limits, trading in Single Stock futures at CME Group will be halted.

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Access a comprehensive list of Bloomberg tickers and vendor codes.

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View Daily Aggregate Positions for more information.

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The SEC Regulation SHO “locate” requirements and short sale price test restrictions do not apply to Single Stock futures.

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Yes. SEC insider trading prohibitions, including Exchange Act Section 10(b) and SEC Rule 10b-5, apply to Single Stock futures. 

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For personnel in a fully registered FCM/BD firm, FINRA Rules specify that only persons who are registered as General Securities Representatives (Series 7), Registered Options Representatives (Series 42), General Securities Sales Supervisors (Series 9/10) or Registered Options Principals (Series 4) may engage in Single Stock futures activities with customers. Further, each such person must complete the required FINRA firm-element continuing education on security futures before engaging in security futures activities.

Under separate NFA Rules, each FCM that is notice-registered as a broker-dealer must have at least one designated security futures principal who has taken and passed the Series 30 NFA Branch Manager Examination to conduct security futures activities.

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No. Single Stock futures are not NMS securities; therefore, the Regulation NMS trade-through, access and sub-penny rules do not apply to them.

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Yes. CFTC large trader rules apply to Single Stock futures and each FCM is required to file daily electronic reports with the CFTC for each account it carries with open positions at or above the reporting levels.

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Financially settled Single Stock futures limits must be set at certain levels that are related to the estimated deliverable supply of the underlying security and do not exceed certain specified levels. [CME has established initial position limits of 200,000 contracts for its listed security futures.] Limits will be effective during the last three trading days of an expiring contract month.

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