CME launched single stock futures on July 27, 2026, across 55 standard contracts and 22 micro contracts covering 100 and 10 shares, respectively. The product extends to mega-cap names including Apple, Nvidia, Tesla, Alphabet, Amazon, Meta, and newly public SpaceX, offering near-24-hour trading access on Globex with leverage up to approximately 6x through a 15% notional margin requirement. The contracts settle in cash rather than physical delivery, fundamentally changing how traders access single-name exposure.
- Contract Size: 100 shares (standard) and 10 shares (micro)
- Tick Size: $0.01 ($1 per tick for standard, $0.10 for micro)
- Settlement: Cash-based on official closing price; quarterly expirations (March, June, September, December)
- Trading Hours: Sunday evening through Friday afternoon with one-hour daily maintenance break
- Minimum Margin: 15% of notional value, set by regulators
The capital efficiency argument is straightforward: controlling 100 shares of a $200 stock through one futures contract requires approximately $3,000 in margin versus $20,000 outright purchase. Shorting mechanics mirror long positions: no locate requirement, no borrow fees, and no short-sale restrictions apply. Traders gain access to directional single-name trades with leverage, hedging strategies for concentrated positions, and index-versus-single-name spreads without the friction of traditional equity trading.
A critical oversight in early market commentary concerns tax treatment. Unlike index futures qualifying for Section 1256 favorable 60/40 blended taxation, single stock futures lack this classification and are taxed as ordinary securities. Short positions face short-term capital gains treatment regardless of holding period, with ordinary income rates reaching 37% rather than the approximately 26.8% blended rate traders often associate with futures products. This distinction materially impacts profit calculations and strategy selection for active traders.
Market-wide circuit breakers apply to all contracts; 7%, 13%, and 20% S&P halts trigger automatic stops. Regulatory halts on underlying stocks immediately halt corresponding futures, potentially locking traders into positions. SpaceX futures have drawn particular attention given the stock’s post-IPO volatility since its June 12 debut at $135 and current valuation between $1.75 trillion and $1.8 trillion. The launch remains subject to final regulatory review at publication.
