Single Stock Futures : Listing Selection and Trading Volume

On November 8, 2002, two new exchanges, OneChicago and NQLX, began trading single stock futures (SSFs) in U.S. We study how these exchanges choose the listed products, and we compare the trading volumes on the two exchanges. The selection process is consistent with the objective of maximizing the market opening success. The estimated probability of listing is a good predictor of the single stock futures' post-listing success, as measured by their trading volume in the first year. OneChicago and NQLX have exhibited very different growth paths since November 2002