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 CE2017-196

DATE July 25, 2017 RE REYNOLDS AMERICAN INC. – CONTRACT ADJUSTMENT FUTURES SYMBOLS RAI1D/ RAI4W/ RAI4H/ RAI4F/ RAI5M/ RAI1T/ RAI1K/ […]

Corporate Event Action CE2017-195

DATE July 20, 2017 RE KCG HOLDINGS, INC. – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOL KCG1D/ KCG3H/ KCG3F/ KCG4M/ KCG4T/ […]

Corporate Event Action CE2017-194

DATE July 19, 2017 RE MOBILEYE N.V. – FURTHER EXTENDED TENDER OFFER FUTURES SYMBOL MBLY1D DATE 7/28/17 (formerly 7/20/17)

Corporate Event Action CE2017-193

DATE July 18, 2017 RE PANERA BREAD COMPANY – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOL PNRA1D/ PNRA3T/ PNRA3W/ PNRA3H/ PNRA3F/ […]

Corporate Event Action CE2017-192

DATE July 18, 2017 RE AKORN, INC. – ANTICIPATED CASH SETTLEMENT FUTURES SYMBOL AKRX1D DATE ???

Exchange News


Notice to Members NTM2017-42

Date: July 26, 2017 Re: Change to OneChicago Billing Report Effective Date: August 1, 2017

Notice to Members NTM2017-41

Date: July 20, 2017 Re: Maintenance to CH1 (350 E. Cermak) Effective Date: July 21, 2017 OneChicago, LLC (“OneChicago”) is […]

Notice to Members NTM2017-40

Date: July 19, 2017 Re: Update to Delta1™ Trading Platform Front End Effective Date: July 24, 2017

Notice to Members NTM2017-32

Date: June 25, 2017 Re: Maintenance to Infrastructure at NY4 Effective Date: June 25, 2017 OneChicago, LLC (“OneChicago”) is issuing […]

Notice to Members NTM2017-39

Date: July 17, 2017 Re: Maintenance to CH1 (350 E. Cermak) Effective Date: July 19, 2017 OneChicago, LLC (“OneChicago”) is […]