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The approach of today's so-called triple-witching, the expiration of options and futures on stocks and stock indexes, could help drive the market, traders said.
Chicago's financial exchanges may have spread the notion of hedging by buying futures on stocks, bonds and currency, but two men who helped pave the way for all this in the 1980's are now turning to London to promote further innovations.
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Since the advent of single-stock futures, which expire on the same day, triple-witching expirations are now often termed quadruple-witching.
They can buy options and futures on stock indexes, each of which allow a speculator to make a lot of money on a small investment -- if the market goes up.
Triple witching refers to the last trading hour on the third Friday of March, June, September and December when options and futures on stock indexes expire concurrently.
So far, investors are staying in stocks, counting on future earnings growth to make up the difference.
Futures contracts on stocks are known as single-stock futures (SSF).
Nasdaq Liffe Markets will begin offering futures on 10 stocks and 4 exchange-traded funds.
Both markets plan to offer futures on more stocks over coming weeks.
Mr. Brodsky says the proposal to allow futures on individual stocks could put his exchange at a competitive disadvantage.
OneChicago, a joint venture of the Chicago Board of Trade, the Chicago Mercantile Exchange and the Chicago Board Options Exchange, will start with futures on 21 stocks.
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