Abstract:
The introduction of single stock futures to a market allows for a per company impactassessment
of futures trading activity. Thirty-eight South African companies were evaluated
in terms of a possible price and volume effect due to the initial trading of their respective
single stock futures contracts. An event study revealed that SSF trading had little impact on
the underlying share prices while a normalised volume comparison pre to post SSF trading
showed a general increase in spot market trading volumes.
