Synthetic Secured Lending Using Single Stock Futures

Single stock futures are ideally suited to replace "agreements" in equity repo and securities lending transactions. All transactions at OneChicago are cleared through the AA+ rated Options Clearing Corporation.

Globe

"Single stock futures provide significant cost advantages and flexibility for both the lenders and borrowers of stock by enabling them to exchange positions without many of the restrictions and intermediaries that exist with existing programs. As a result, the lenders and borrowers are able to reduce revenue sharing agreements, fees, counter party risk, and the risk of the recall of positions..."
Mountains

"When an investor buys an asset, they expect the return to be commensurate to a certain level of risk. Too often the investor is disregarding the opportunity cost of receiving a risk-free rate of return as well. Single stock futures lower this opportunity cost by enabling an investor to finance an equity position more efficiently, thus improving the risk-reward ratio of their investment..."
Mountains

Securities lending is a process that involves both market and counter party risk. Similar to an EFP ("Exchange Future for Physical") transaction, this type of lending utilizes single stock futures (SSF) with some very stark differences. SSFs simplify the lending/borrowing process, significantly enhance the total return, and remove counter party risk.

Product News


Corporate Event Action CE2017-167

DATE June 26, 2017 RE ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG – EXCHANGE OFFER FUTURES SYMBOL AWH1D DATE 6/30/2017

Corporate Event Action CE2017-166

DATE June 26, 2017 RE KATE SPADE & COMPANY – EXTENDED TENDER OFFER FUTURES SYMBOL KATE1D DATE 7/10/17 (formerly 6/23/17)

Corporate Event Action CE2017-165

DATE June 22, 2017 RE MOBILEYE N.V. – FURTHER EXTENDED TENDER OFFER FUTURES SYMBOL MBLY1D DATE 7/20/17 (formerly 6/21/17)

Corporate Event Action CE2017-164

DATE June 22, 2017 RE ONEOK PARTNERS, L.P. – ANTICIPATED ADJUSTMENT FUTURES SYMBOL OKS1D NEW SYMBOL OKS2D LTR CODE OKSD2 […]

Corporate Event Action CE2017-163

DATE June 21, 2017 RE ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG – EXCHANGE OFFER FUTURES SYMBOL AWH1D DATE 6/30/2017

Exchange News


Notice to Members NTM2017-34

Date: June 26, 2017 Re: Four Decimal Order Entry for Outright SSFs Effective Date: July 10, 2017 OneChicago, LLC (“OneChicago”) […]

Notice to Members NTM2017-33

Date: June 26, 2017 Re: Independence Day Holiday Trading Hours

Notice to Members NTM2017-31

Date: June 23, 2017 Re: Announcing No Dividend Risk Friday Futures Effective Date: July 24, 2017

Notice to Members 2017-30

Date: June 8, 2017 Re: Four Decimal Order Entry for Outright SSFs Effective Date: July 10, 2017 OneChicago, LLC (“OneChicago”) […]

Notice to Members 2017-29

Date: June 1, 2017 Re: Maintenance to SFTP Site Effective Date: June 1, 2017 OneChicago, LLC (“OneChicago”) is issuing this […]