The Commodity Futures Trading Commission has approved Nasdaq Liffe Markets (NQXL) as a futures market and self-regulatory organisation for the trading of single stock futures. NQLX is the first US exchange to be approved to trade these new instruments.
Trading of single stock futures in the US was legalised with the repeal of the Shad-Johnson Accord. Principal-to-principal trading will begin on NQLX following an analysis of marketplace readiness and submission to the CFTC of final specifications on clearing and internal regulatory arrangements.
Nasdaq Liffe Markets interim CEO Bob Fitzsimmons says: “The CFTC has put us one giant step closer to offering single stock futures to US investors.”
The UK Treasury also has recognized Nasdaq Liffe Markets as an overseas investment exchange in the UK. This will allow NQLX to provide direct access to its market to members in the UK.
Headquartered in New York, the joint venture company also has offices in London and Chicago. It will initially list single stock futures on the largest US companies through Liffe’s electronic trading platform.