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 CE2017-105

DATE April 28, 2017 RE DIREXION DAILY SMALL CAP BULL 3X SHARES – 2 FOR 1 STOCK SPLIT FUTURES SYMBOLS TNA1D […]

Corporate Event Action CE2017-104

DATE April 21, 2017 RE AIR METHODS CORPORATION – CASH SETTLEMENT/ACCELERATION OF MATURITIES FUTURES SYMBOLS AIRM1D DATE 4/21/2017

Corporate Event Action CE2017-103

DATE April 20, 2017 RE ONEMAIN HOLDINGS, INC. – FURTHER EXTENDED AND AMENDED EXCHANGE OFFER FUTURES SYMBOL OMF1D DATE 5/5/17 […]

Corporate Event Action CE2017-102

DATE April 20, 2017 RE CEMEX, S.A.B. DE C.V. – 4% STOCK DIVIDEND FUTURES SYMBOLS CX1D NEW SYMBOLS CX2D LTR […]

Corporate Event Action CE2017-101

DATE April 13, 2017 RE HEWLETT PACKARD ENTERPRISE COMPANY – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOL HPE2D LTR CODE […]

Exchange News


Notice to Members 2017-24

Date: April 27, 2017 Re: Maintenance to UAT Effective Date: April 27, 2017 OneChicago, LLC (“OneChicago”) is issuing this Notice to […]

Notice to Members NTM2017-23

Date: April 17, 2017 Re: Maintenance to UAT Effective Date: April 18, 2017 OneChicago, LLC (“OneChicago”) is issuing this Notice to […]

Notice to Members NTM2017-22

Date: April 13, 2017 Re: Elimination of Pre-Open State in Delta1 Effective Date: April 17, 2017 OneChicago, LLC (“OneChicago”) is issuing […]

Notice to Members NTM2017-21

Date: April 7, 2017 Re: Audit Trail Migration Effective Date: April 10, 2017

Notice to Members NTM2017-20

Date: April 7, 2017 Re: Good Friday Holiday Trading Hours OneChicago, LLC (“OneChicago”) will be closed on Friday, April 14, […]