OneChicago Launches OCX.Weekly® Futures
- Innovative next-day settlement of stock upon expiration futures product driven by demand from large institutional equity holders
CHICAGO – January 29, 2014 – OneChicago, LLC (OCX), an equity finance exchange, today announced the launch of OCX.Weekly futures as part of the OCX.NoDivRisk™ futures product suite. Pending regulatory approval, OneChicago will be releasing its physically settled OCX.Weekly futures product with next day settlement for the stock delivery upon expiration.
Large institutional traders currently holding long equity positions are demanding a product which enables them to synthetically loan out their securities via the OneChicago exchange future for physical (“EFP”) trade. Additionally, the OCX.Weekly futures allow market participants to leverage it for short term investments of idle cash.
“This new product will allow funds to engage in short term equity financing transactions in a regulated and centrally cleared environment with the knowledge they can receive their original stock position back with five business days due to the next day settlement of stock,” said David Downey, CEO of OneChicago.
The OCX.Weekly futures will be available to trade for six days. The product is scheduled to list on Fridays and then expire the following Friday at the close of trading. Physically delivered OCX.Weekly Futures will overlay the same underlying as the OCX.Original (“1C”) futures and OCX.NoDivRisk futures (“1D”). Each weekly offering will have a separate OneChicago symbol which generally will be the underlying stock plus 1W for the first Friday of the month, 2W for the second Friday of the month, and so forth.
As part of the OCX.NoDivRisk futures product suite, the OCX.Weekly futures will be adjusted for any distributions during the time period they are listed. All other corporation actions are handled in the usual and customary way (please visit the rules and the corporate events section of at www.onechicago.com).
More information can be found at: www.onechicago.com/?page_id=2022
OneChicago (OCX) is the only US equity finance exchange for trading security futures and the related EFP. Regulated by the SEC and CFTC, OCX lists approximately 2,800 products, including ADRs, ETFs and OCX.NoDivRisk™ contracts. Contracts are cleared through the centralized counterparty, “AA+”-rated OCC. Security futures, a Delta One product, are utilized for synthetic equity strategies including equity swaps, equity repos and stock loan/borrow transactions. The OneChicago OCX.NoDivRisk, Exchange Futures for Physical transaction is economically equivalent to a Securities Lending Transaction.
OCX.NoDivRisk contracts are security futures with dividends removed from the pricing as the future’s price is adjusted down by the value of the dividend on Ex-date. For more information, please visit our Website at: http://www.OneChicago.com.