Single stock perpetual futures (“perps”) came up as a trading idea at ISLA Americas’ 3rd annual conference last week in Key Biscayne. These products are set to be a new regulated entrant into the continuum of derivatives and funding products available to retail and institutional traders. The offshore market is already said to be running $200 billion in transactional volume monthly and the expectation is that US single stock perps will be approved in the foreseeable future. Like with all derivatives products, securities finance market participants should be aware of what’s happening and where they should insert themselves into the process. A key point is the thought process behind the actors in each product set.
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