NQLX announced it will suspend trading in its security futures contracts by year-end, casting further doubt on the viability of single stock futures in the United States.
The exchange, wholly owned by Euronext, is retaining its designated contract market status with a view to future product launches. Officials declined to give details, but the expectation is that it will be used to extend distribution of Euronext Liffe's fledgling Eurodollar contract.
Bob Fitzsimmons, NQLX ceo, told FO Week that the decision to shut down its single stock futures operations came down to identifying the "structural inefficiencies of the product." He added that the very selling points of securities futures - margins, taxes and ability to short sell - were "attributes that have become detriments."
In NQLX's...