single stock future investment & finance definition

A contract in which opposite parties agree to buy and sell a stock at a set price on a certain date. Unlike a stock option in which the owner of the option has a right to either buy (call) or sell (put), both parties in a single stock future contract have an obligation. Trading in single stock futures was pioneered in Europe on the London International Financial Futures and Options Exchange and was banned in the United States until repeal of the Shad-Johnson Accord in 2000. See also Nasdaq Liffe Markets, OneChicago LLC.