Futures on ten different stocks are planned for the first quarter of 2001. The first five being BBVA, BSCH, Endesa, Repsol YPF, and Telefónica. In a second phase, futures on Amadeus, Gas Natural, Iberdrola, Terra, and TPI.
As for equity options, MEFF plans to offer contracts on all IBEX-35 constituents, with priority for those already trading options (currently 18 stocks), though the introduction will be done in several stages based on Members and investors demand.
Contract features
Share futures is a product very similar to index futures in conceptually and in practice. The main difference in this case is that share futures will be settled by physical delivery of the shares, like the options, while IBEX-35 futures are cash-settled.
Share or stock futures is a useful risk management instrument, comparable to index futures. They provide the user with the same flexibility to go long or short or use them for hedging purposes.
Contract specifications are listed in a separate page, the main features are :
- 100 shares per contract
- quarterly expirations, the same as for equity options
- settlement by delivery of the underlying shares
- daily mark-to-market
