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 CE2017-50

DATE February 17, 2017 RE ADJUSTED CITRIX SYSTEMS, INC. – DETERMINATION OF DELIVERABLE ADJUSTED FUTURES SYMBOL CTXS2D LTR CODE CTXD2

Corporate Event Action CE2017-49

DATE February 17, 2017 RE COLUMBIA PIPELINE PARTNERS LP – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOL CPPL1D DATE 2/17/2017

Corporate Event Action CE2017-48

DATE February 17, 2017 RE BLUE NILE, INC. – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOL NILE1D DATE 2/17/2017

Corporate Event Action CE2017-47

DATE February 16, 2017 RE ARIAD PHARMACEUTICALS, INC. – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOL ARIA1D DATE 2/16/2017

Corporate Event Action CE2017-46

DATE February 15, 2017 RE COMCAST CORPORATION – 2 FOR 1 STOCK SPLIT FUTURES SYMBOL CMCX1D DATE 2/21/2017

Exchange News


Notice to Members NTM2017-10

Date: February 14, 2017 Re: Migrating 300 Boulevard East, Weehawken, NJ (CenturyLink NJ2) Connectivity Effective Date: February 17, 2017

Notice to Members NTM2017-9

Date: February 13, 2017 Re: President’s Day Holiday Trading Hours

Notice to Members NTM2017-8

Date: February 2, 2017 Re: Implementing Delivery Fees & Tiered Carry Fees Effective Date: March 1, 2017

Press Release 2/1/2017

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

Notice to Members NTM2017-7

Date: January 21, 2017 Re: Maintenance to Infrastructure at NY4 Complete Effective Date: January 21, 2017