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 CE2016-308

DATE: December 1, 2016 RE: ENVISION HEALTHCARE HOLDINGS, INC. – CONTRACT ADJUSTMENT FUTURES SYMBOLS: EVHC1D / EVHC1M / EVHC1T / EVHC1W […]

Corporate Event Action CE2016-307

DATE: December 1, 2016 RE: ISHARES MBS ETF – CASH DISTRIBUTION (CAPITAL GAINS) FUTURES SYMBOL: MBB1C DATE: 12/1/16 Below, for […]

Corporate Event Action CE2016-306

DATE: November 30, 2016 RE: POST PROPERTIES, INC. – CONTRACT ADJUSTMENT FUTURES SYMBOL: PPS1D NEW SYMBOL: PPS2D DATE: 12/1/2016

Corporate Event Action CE2016-305

DATE: November 30, 2016 RE: TAL EDUCATION GROUP – SYMBOL CHANGE FUTURES SYMBOLS: XRS1C / XRS1D NEW SYMBOLS: TAL1C / […]

Corporate Event Action CE2016-304

DATE: November 29, 2016 RE: M.D.C. HOLDINGS INC. – 5% STOCK DIVIDEND FUTURES SYMBOL: MDC1D NEW SYMBOL: MDC2D DATE: 12/2/2016

Exchange News


Press Release 12/1/2016

OneChicago Announces Trading Volume for November 2016 Year-to-Date Volume up 8 Percent CHICAGO – December 1, 2016 – OneChicago, LLC (OCX), […]

Notice to Members NTM2016-34

Date: November 22, 2016 Re: Announcing Fee Schedule to Delta1 Agreement Effective Date: March 1, 2017

Notice to Members NTM2016-33

Date: November 18, 2016 Re: Change to OCC OneChicago OFRA File Effective Date: December 2, 2016   OneChicago, LLC (“OneChicago”) is […]

Notice to Members NTM2016-32

Date: November 17, 2016 Re: Holiday Trading Hours

Notice to Members NTM2016-31

Date: November 10, 2016 Re: Maintenance to UAT Effective Date: November 11, 2016 OneChicago, LLC (“OneChicago”) is issuing this Notice to […]