.jpg)
MEFF, the Spanish derivatives exchange and subsidiary of BME Spanish Exchange, will tomorrow broaden its range of futures to incorporate cash-settled single stock futures contracts on the leading non-Spanish European shares.
With this initiative, MEFF is making a total of 76 cash-settled single stock futures contracts available to investors: 40 new contracts on the most liquid and representative shares on the large European exchanges, and 36 contracts on shares quoted on the Spanish stock exchange, which have been trading on MEFF since last July.
MEFF, the derivatives business of the BME, has developed a leading position in single stock futures over recent years, a product which has attracted strong interest in the leading world financial markets, due to its strong capabilities.
Fernando Centelles, Chief Executive of MEFF commented: "Over the last few years we've been very successful in establishing a strong, liquid market in single stock futures on Spanish shares, so it's a natural next step for us to broaden the range of contracts for single stock futures into other European shares, responding in part to the positive market feedback we have received."
The 76 cash-settled contracts are on shares quoted on the following exchanges:
BME: 36 shares
Euronext: 22 shares
Deutsche Börse: 11 shares
Borsa Italiana: 6 shares
OMX: 1 share
While the single stock futures already traded on MEFF since 2001 are settled by physical delivery of shares, the new contracts are cash settled according to a reference price.
Each contract is for 100 shares in the company (due to corporate actions, some stock futures contracts may temporarily have on some expirations a different contract size) and expirations available for trading and clearing will be for the two nearest months and a four quarterly cycle.
New members and more facilities accessible to MEFF
In parallel with the launch of single stock futures on European shares, MEFF is maintaining its strategy of signing up new members and continuing the momentum of its own technology development. Since 2005, the number of foreign members has doubled, reaching 49 out of a total of 113; the connectivity of the trading and clearing system has been increased with the setting up of a unique standard interface (FIX); communication nodes have been installed in London and Chicago and system capacity has been multiplied by fifteen. This increase in capacity and connectivity has made it possible for the current electronic system at MEFF to process a monthly average in excess of 40 million orders, with more than 500,000 transactions, enabling it to deal with new operating trends such as algorithmic trading.
