Chicago Bets on Risky Futures

The Windy City's bourses gear up to offer futures on individual stocks. How hard will they push these controversial products?

Chicago's two major futures exchanges and its options exchange are joining forces to bring a controversial product to the U.S. -- futures on individual stocks. The Chicago Mercantile Exchange joined hands on May 14 with the Chicago Board Options Exchange (CBOE) and the Chicago Board of Trade (CBOT) to set up a joint-venture company to introduce so-called "single-stock futures." Says CBOE Chief Executive William J. Brodsky: "Our willingness to work together on this venture will ensure that Chicago remains the world center in derivatives trading and risk management."

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