International derivatives exchange Eurex has said that it will launch single stock futures on leading Canadian companies on 25 November 2010.
According to Eurex, the specifications of the new contracts will follow the US listings. Each contract will represents 100 shares denominated in US dollar and is cash settled.
They will have expiry dates up to three years for the next 13 calendar months, plus the two following annual contract months out of the December cycle. The Eurex Block Trade facility will also be allowed for the Canadian single stock futures.
The futures contracts will be based on shares of Bank of Montreal, BCE, Canadian Imperial Bank of Commerce and Sun Life Financial.
Eurex Executive Board member Michael Peters said that the single stock futures have quickly become one of the company's fastest growing product segments. The contracts give customers greater flexibility in executing trading strategies in more than 750 names in Europe and internationally.
"The new Canadian listings will provide members with further trading opportunities in the North American market," Peters said.
Eurex first introduced single stock futures on companies included in the DAX, EURO STOXX 50 and SMI indices in October 2005.
Since then the product suite has expanded to include stocks in additional European countries, the US, and emerging markets Russia and Brazil.