The Return of Single Stock Futures

Single Stock Futures Are Back: Why This Time Could Be Different

For many traders, this announcement may seem like something entirely new. In reality, Single Stock Futures (SSFs) have been around before. They were first introduced in the United States in 2002 after legislation ended a two-decade ban on these products. While the contracts offered several advantages, including leverage, the ability to easily trade both long and short, and capital efficiency, they never gained widespread acceptance. Limited broker support, relatively high margin requirements, low trading volume, and the explosive growth of the options market ultimately caused them to fade into obscurity.

Fast forward more than twenty years, and the trading landscape has changed dramatically. Retail participation in futures markets has surged, brokers now offer sophisticated multi-asset trading platforms, and the success of products like CME's Micro E-mini futures has demonstrated that investors are eager for smaller, more accessible contracts. Against that backdrop, CME Group has announced the return of Single Stock Futures, with trading expected to begin on July 27, pending final regulatory approval.

What Is CME Launching?

CME will introduce 55 Full-Size Single Stock Futures contracts along with 22 Micro Single Stock Futures. Each contract is based on an individual large-cap U.S. stock representing companies within the S&P 500, Nasdaq-100, and Russell 1000 indexes. Collectively, these companies account for approximately 55% to 65% of total U.S. stock market capitalization, giving traders access to many of the world's largest and most actively traded companies.

Why This Matters

The return of Single Stock Futures represents one of the most significant additions to the equity futures marketplace in years. For the first time, traders will have nearly 24-hour access to many of America's largest companies through the futures markets.

Among the potential advantages are:

• Nearly 23-hour trading, Sunday evening through Friday afternoon.
• The ability to establish long or short positions without borrowing shares or locating stock to short.
• Capital-efficient exposure through futures margin.
• Cash settlement at expiration with no physical delivery of shares.
• Access through eligible futures or securities accounts, depending upon broker policies.

For active traders, this creates a powerful alternative to traditional stock ownership while maintaining many of the benefits futures traders have enjoyed for decades.

Stocks vs. Single Stock Futures

What Does This Mean for Trading Academy Members?

For Trading Academy students, very little changes philosophically.

Our approach has never been based on finding a "magic" market. Instead, we focus on identifying institutional order flow through the Law of Supply and Demand, while emphasizing process, discipline, risk management, and proper execution. Those principles apply just as effectively to Single Stock Futures as they do to stocks, futures, options, Forex, or digital assets.

What does change is the size of the opportunity.

Single Stock Futures combine many of the advantages of both stock trading and futures trading into a single product. They may provide new opportunities for:

• Active swing traders
• Day traders
• Portfolio hedging
• Directional trading
• Options traders seeking additional flexibility

As with any leveraged product, however, disciplined position sizing and sound risk management remain essential.

How Will Brokers Handle Single Stock Futures?

At launch, Single Stock Futures are expected to be available through both eligible futures and securities accounts, although broker implementation and account requirements will likely vary.

Current CME guidance indicates:

• Initial margin is expected to be approximately 15% of the contract value (roughly 6.67:1 leverage).
• Individual brokers may require higher margin than CME minimums.
• Intraday margin policies have not yet been finalized.
• Traders should contact their broker regarding account eligibility and margin requirements.

Contract Specifications

According to CME Group (subject to regulatory approval and future changes):

• Trading hours: 23 hours per day beginning Sunday at 6:00 PM ET through Friday at 5:00 PM ET (closed daily from 5:00–6:00 PM ET Monday through Thursday).
• Quarterly expirations: March, June, September, and December.
• Trading terminates at 4:00 PM ET on the third Friday of the expiration month.
• Financially settled with no physical share delivery.
• Market pricing reflects financing costs, dividends, and time remaining until expiration.
• Jointly regulated by the SEC and CFTC.

Contract Sizes

Full-Size Contracts

• Represent 100 shares of the underlying stock.
• Minimum tick: $0.01 ($1.00 per contract).

Micro Contracts

• Represent 10 shares of the underlying stock.
• Minimum tick: $0.01 ($0.10 per contract).

Stocks Available at Launch

The initial Full-Size contract lineup includes many of the largest publicly traded companies, including Apple, Microsoft, Nvidia, Amazon, Meta, Tesla, Berkshire Hathaway, JPMorgan Chase, Costco, Alphabet, Eli Lilly, ExxonMobil, Visa, Walmart, Palantir, Broadcom, Netflix, Boeing, Chevron, Coca-Cola, Home Depot, and dozens of other large-cap U.S. companies.

Micro contracts will initially be available on 22 of the most actively traded names, including Apple, Amazon, Nvidia, Microsoft, Tesla, Meta, Alphabet, AMD, Palantir, Bank of America, Walmart, ExxonMobil, and others.

Final Thoughts

Whether Single Stock Futures become a niche product or evolve into a major segment of the financial markets will depend on liquidity, broker adoption, and trader participation. The first version introduced in 2002 never achieved widespread acceptance, but today's marketplace is fundamentally different. Futures trading has become mainstream, trading technology has improved dramatically, and investors have shown strong demand for products that offer flexibility, capital efficiency, and nearly around-the-clock access.

For traders willing to learn how these contracts work and apply disciplined risk management, Single Stock Futures could become another valuable tool in the modern trader's toolbox.

For complete contract specifications and updates, visit the CME Group Single Stock Futures Fact Card:

https://www.cmegroup.com/markets/equities/files/single-stock-futures-fact-card.pdf

All information is subject to regulatory approval and may change prior to launch. Traders should consult their futures or securities broker regarding account eligibility, margin requirements, and contract availability.