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 CE2017-248

DATE September 25, 2017 RE CABELA’S INCORPORATED – CASH SETTLEMENT FUTURES SYMBOLS CAB1D/ CAB4T/ CAB4W/ CAB4H/ CAB5F/ CAB1M/ CAB1T DATE […]

Corporate Event Action CE2017-247

DATE September 25, 2017 RE E.I. DU PONT DE NEMOURS AND COMPANY – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOLS […]

Corporate Event Action CE2017-246

DATE September 22, 2017 RE NXP SEMICONDUCTORS N.V. – FURTHER EXTENDED TENDER OFFER FUTURES SYMBOL NXPI1D DATE 10/20/17 (formerly 9/22/17)

Corporate Event Action CE2017-245

DATE September 21, 2017 RE HERBALIFE LTD. – EXTENDED PARTIAL SELF TENDER OFFER FUTURES SYMBOL HLF1D DATE 10/05/17 (formerly 9/19/17)

Corporate Event Action CE2017-244

DATE September 21, 2017 RE FIDELITY NATIONAL FINANCIAL, INC. – DISTRIBUTION FUTURES SYMBOL FNF1D NEW SYMBOL FNF2D LTR CODE FNXD2 […]

Exchange News


Notice to Members NTM2017-49

Date: September 14, 2017 Re: Release of Risk Control & Retiring of OCX.RiskMan Effective Date: September 14, 2017   OneChicago, […]

Notice to Members NTM2017-48

Date: September 7, 2017 Re: Re-Dissemination of Start of Day Exchange Summary Message Effective Date: September 7, 2017

Press Release 9/1/2017

OneChicago Announces Trading Volume for August 2017 CHICAGO – September 1, 2017 – OneChicago, LLC (OCX), a securities finance exchange, […]

Notice to Members 2017-47

Date: August 28, 2017 Re: Labor Day Holiday Trading Hours OneChicago, LLC (“OneChicago”) will be closed on Monday, September 4, […]

Notice to Members 2017-46

Date: August 23, 2017 Re: T+2 Futures Settlement Cycle Conversion Effective Date: September 5, 2017 OneChicago, LLC (“OneChicago”) is issuing […]