Exchange Introduction
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*For products listed with an * on www.onechicago.com no LMM will be responsible for making continuous two-side markets
OneChicago is an electronic exchange committed to becoming the global leader in futures on individual stocks, narrow-based indexes and ETFs. We are a joint venture of IB Exchange Corporation and the world’s premier options and futures exchanges: Chicago Board Options Exchange (CBOE) and CME Group (CME). Current members of CBOE and CME are automatically members of OneChicago and can trade through existing memberships and accounts. No new membership fees or applications are required.
All market participants have access to trade at OneChicago. Investors do not need to be a member of the exchange to trade at OneChicago and may hold positions in OneChicago security futures in either a securities or a futures brokerage account.
The exchange has been designed to meet the expectations of traders and brokers by providing three distinct advantages:
1. Liquid markets from day one: OneChicago uses a market maker system with a number of Lead Market Makers (LMMs). These LMMs have been selected based on their ability and commitment to make continuous two-sided markets. The benefits that LMMs provide to investors include tighter spreads and the ability to promptly execute orders placed with their brokers.
OneChicago LMMs include globally recognized investment firms and market-making professionals who have demonstrated the experience and financial capacity to meet their contractual obligations to OneChicago. In addition, other market makers will be actively trading along with LMMs to ensure the liquidity that investors value.
2. Lower transaction costs and better fills: As a fully electronic exchange, OneChicago has the potential to provide market participants with lower transaction costs and greater visibility behind the current market. All traders will have the option to view depth of book information including at least the top five bids and offers. Trades are routed, matched and reported electronically, creating fast and accurate trade execution and confirmation.
3. Easy Access through CBOEdirect: Most investors are able to route their orders to OneChicago using their existing account and trading software, as many FCMs and Broker Dealers are already connected to OneChicago through CBOEdirect or our Block and EFP Trading System (BETS), with resulting trades flowing either to a securities or futures account.