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Bridge over ocean
1 May 2005 Financial Analysts Journal Volume 61, Issue 3

Solving the Mystery of Stock Futures

  1. Philip McBride Johnson

From 1981 until 2000, futures contracts on single stocks and on small-stock indexes were prohibited under a U.S. federal law known popularly as the “Shad–Johnson Accord.” After 2002, trading was conducted on two newly formed markets; one has already closed, but the other battles on. In this article, one of the Accord's namesakes discusses why these products were banned and why they have struggled since being launched.

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