Nasdaq Liffe Markets, LLC (NQLX) has completed the interim dress rehearsal test period for trading single stock futures over the Liffe Connect platform.
The exchange has been testing the platform's post-trade administration, clearing operation, regulatory operations and the handling of corporate events with member firms, on a weekly basis since March 2002.
Approximately 300,000 contracts were traded during dress rehearsal testing. The corporate events that were tested included cash dividends, stock dividends, integer stock splits, non-integer stock splits, reverse splits and mergers.
Nasdaq Liffe Markets claims to be the only exchange currently offering extensive testing and dress rehearsals for single stock futures. Operationally, all that remains prior to live trading is a final mandatory series of tests that will be required of all member firms that plan to participate on opening day.
Tom Ascher, NQLX CEO, says the testing has allowed the exchange to address any potential issues and helped prepare all constituents in the new marketplace: "As we are launching a new financial instrument, it is imperative that our members have had ample time to test the compatibility of their systems," he says.