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 CE2017-20

DATE January 20, 2017 RE DCP MIDSTREAM PARTNERS, LP – NAME/SYMBOL CHANGE FUTURES SYMBOLS DPM1D NEW SYMBOLS DCP1D EX-DATE 1/23/2017

Corporate Event Action CE2017-19

DATE January 19, 2017 RE ST. JUDE MEDICAL, INC. – CONTRACT ADJUSTMENT ADJUSTED FUTURES SYMBOLS STJ2C / STJ2D

Corporate Event Action CE2017-18

DATE January 18, 2017 RE ADJUSTED STARZ – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOL STRZ2D

Corporate Event Action CE2017-17

DATE January 18, 2017 RE INTREXON CORPORATION – DISTRIBUTION FUTURES SYMBOLS XON1C / XON1D NEW SYMBOLS XON2C / XON2D LTR […]

Corporate Event Action CE2017-16

DATE January 18, 2017 RE MELCO CROWN ENTERTAINMENT LIMITED – CASH DISTRIBUTION FUTURES SYMBOL MPEL1C EX-DATE 1/19/2017

Exchange News


Notice to Members 2017-7

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

Notice to Members NTM2017-6

Date: January 20, 2017 Re: Maintenance to Infrastructure at NY4 Effective Date: January 21, 2017

Notice to Members NTM2017-5

Date: January 17, 2017 Re: Change in Open Interest Effective Date: January 17, 2017

Notice to Members NTM2017-4

Date: January 13, 2016 Re: Delaying Four Decimal Order Entry for Outright SSFs Pilot Program Effective Date: TBD

Notice to Members NTM2017-3

Date: January 10, 2016 Re: Martin Luther King Jr. Holiday Trading Hours