Product News

Press Release PR08-031 7/02/2008

OneChicago Reports June Volume
Chicago, IL – July 2, 2008 – OneChicago, LLC today reported that 663,186 security futures contracts traded at the Exchange in June 2008. YTD volume stands at 2,458,053.
Open interest stood at 462,206 contracts in June 2008.


Corporate Event Notice CE08-53

Countrywide Financial Corporation (”CFC/CFC1C”)
Merger COMPLETED with Bank of America Corporation (“BAC”)


Corporate Event Notice CE08-52

CNET Networks, Inc. (”CNET/CNET1C”) Merger COMPLETED with
CBS Corporation (“CBS”)


Corporate Event Notice CE08-51

MELCO PBL ENTERTAINMENT (MACAU) LIMITED (”MPEL/MPEL1C”)
Name Change
Effective Date: June 30, 2008


Press Release PR08-030 6/30/2008

OneChicago will be closed Friday, July 4th, 2008, and will close early and will operate on the following abbreviated trading schedule on Thursday, July3, 2008:
Single Stock Futures will close: 12:00 CT
ETF Futures will close: 12:15 CT
OneChicago office will close: 1:30 CT


Corporate Event Notice CE08-50

Fidelity National Information Services, Inc. (”FIS/FIS1C”)
Distribution of Shares of Lender Processing Services, Inc. (“LPS”)
Ex-Distribution Date: July 3, 2008


Corporate Event Notice CE08-49

Centurytel, Inc. (“CTL/CTL1C”)
Special Cash Distribution
Ex-Distribution Date: July 2, 2008


Corporate Event Notice CE08-48

CNET Networks, Inc. (”CNET/CNET1C”) Subsequent Proposed merger with
CBS Corporation (“CBS”)


How Can You Benefit From Single Stock Futures?

SSFs are an alternative way to invest and trade equity products. At expiration the SSF turns into a long or short stock position. Accordingly if you are interested in buying any of the Stocks whose symbol is displayed below you will notice that you can purchase a SSF that is currently trading BELOW the offer on the stock. That is, you can buy the SSF cheaper now and at expiration you will get the stock at a discount to the present underlying purchase price. All prices below were last updated at 12:56:39 EST on 2008-07-03.

Symbol Contract Future Stock Dividend Discount # of Days Implied Annualized Discount
LNG 2008-07 3.68 3.75 0 $-0.07 15 -44.80%
LNG 2008-08 3.66 3.75 0 $-0.09 43 -20.09%
LNG 2008-09 3.63 3.75 0 $-0.12 78 -14.77%
NTRI 2008-09 13.07 13.56 0.175 $-0.32 78 -10.72%
NTRI 2008-08 13.22 13.56 0.175 $-0.17 43 -10.19%
NTRI 2008-12 12.63 13.56 0.35 $-0.58 169 -9.11%
SHLD 2008-09 72.41 73.77 0 $-1.36 78 -8.51%
BZH 2008-09 4.84 4.93 0 $-0.09 78 -8.43%
SHLD 2008-08 73.04 73.77 0 $-0.73 43 -8.28%
LNG 2008-12 3.61 3.75 0 $-0.14 169 -7.95%

(more…)


Visit the Single Stock Futures Tutorial

The tutorial covers such topics as:
The SSF Financing Benefit.
SSFs are considered a cost efficient method to invest in stocks. This is because SSFs have the cost of carry interest rate built into their price. This interest rate is locked when the trade is made and is determined in the SSF pricing by multiple participants in a competitive open market. By contrast, when purchasing stock on margin the variable interest rate is dictated by that single broker in a non-competitive environment which is subject to market interest rate volatility.
Click the Image to View the Tutorial!


OneChicago Upcoming Education and Webinars

In an effort to provide education about our products and their benefits, OneChicago provides ongoing webinars and other education events.

Below is a list of upcoming events.

OneChicago is pleased to announce the upcoming Webinar with OptionsXpress on Wednesday, July 16th at 3:30 PM (CDT) - Single Stock Futures and Exchange of Futures for Physical (EFP’s)

Please join OneChicago and OptionsXpress Wednesday, July 23rd at 7:00 AM (CDT) for a Webinar - Introduction to Single Stock Futures

Please join OneChicago and OptionsXpress Wednesday, July 30th at 7:30 pm CDT for a webinar - Compare Trading Stock on Margin to Using Single Stock Futures


OneChicago B.E.T.S.

OneChicago Blocks & EFP Trading System
The OneChicago B.E.T.S. (Blocks and EFP Trading System) is intended to streamline the current reporting of Bi-lateral (i.e. pre-negotiated trades between you and your customer or other market participant) Block and EFP trades and additionally create an “on screen” (point and click) trading platform for Block & Block-Roll orders as well as a matching system for EFPs. The system will auto-match orders in strict price-time priority. Block-Rolls and EFPs will be displayed and traded on a differential basis. There are two types of user interfaces available. An internet based Graphical User Interface (GUI) and an Application Programming Interface (API). Users may connect via the internet, VPN, or point-to-point connection.


Single Stock Futures

Single-stock futures are securities that share some of the features of Equities and also some of traditional commodity . There are interest rate benefits that can not be found with other products.
where F is the single-stock futures contract price, P is the underlying stock price, r is the annualized interest rate, and Div is the expected dividend.

Another valuation of single stock futures can be found through the following:

where S is the price of the underlying (the stock price), PV(Div) is the Present value of any dividends entitled to the holder of the underlying between T and t, r is the risk free rate, and e is the base of the natural log. F is of course the price of the single stock futures contract.


Fed Funds Effective For
2008-07-021.95%
Source: newyorkfed.org
EFP
Lowest Borrow Rates
COV20080718-6.225%
CTL20080919-5.925%
CTL20081219-5.025%
PCAR20081219-2.750%
ETFC20080919-2.025%
Highest Loan Rates
RDS A200808153.450%
BBY200812193.250%
PFE200812193.075%
KLAC200808152.950%
RDS A200809192.925%
Source: InteractiveBrokers.com


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