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 CE2017-81

DATE March 23, 2017 RE LINEAR TECHNOLOGY CORP – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOL LLTC2C / LLTC2D LTR […]

Corporate Event Action CE2017-80

DATE March 23, 2017 RE ADJUSTED GLOBAL NET LEASE, INC. – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOL GNL2D LTR […]

Corporate Event Action CE2017-79

DATE March 22, 2017 RE DIREXION DAILY S&P 500 BEAR 3X SHARES – REVERSE SPLIT FUTURES SYMBOLS SPXS1C / SPXS1D […]

Corporate Event Action CE2017-78

DATE March 22, 2017 RE DIREXION DAILY JUNIOR GOLD MINERS INDEX BEAR 3X SHARES – REVERSE SPLIT FUTURES SYMBOL JDST1D […]

Corporate Event Action CE2017-77

DATE March 22, 2017 RE DIREXION DAILY JUNIOR GOLD MINERS INDEX BULL 3X SHARES – REVERSE SPLIT FUTURES SYMBOLS JNUG1D […]

Exchange News


Notice to Members NTM2017-17

Date: March 22, 2017 Re: Maintenance to CH1 (350 E. Cermak) Reminder Effective Date: March 24, 2017

Notice to Members NTM2017-16

Date: March 22, 2017 Re: Maintenance to UAT Reminder Effective Date: March 24, 2017

Notice to Members NTM2017-15

Date: March 17, 2017 Re: Maintenance to CH1 (350 E. Cermak) Effective Date: March 24, 2017

Notice to Members NTM2017-14

Date: March 17, 2017 Re: Maintenance to UAT Effective Date: March 24, 2017

Notice to Members NTM2017-13

Date: March 16, 2017 Re: Elimination of Pre-Open State in Delta1 Effective Date: April 10, 2017