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 CE2017-214

DATE August 17, 2017 RE IPATH S&P 500 VIX SHORT-TERM FUTURES ETN – REVERSE SPLIT FUTURES SYMBOLS VXX1D/ VXX4W/ VXX4H/ […]

Corporate Event Action CE2017-213

DATE August 16, 2017 RE ADJUSTED SUPERVALU INC. – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOLS SVU2D LTR Code SVUD2

Corporate Event Action CE2017-212

DATE August 16, 2017 RE E.I. DU PONT DE NEMOURS AND COMPANY – ANTICIPATED ADJUSTMENT FUTURES SYMBOL DD1D NEW SYMBOL […]

Corporate Event Action CE2017-211

DATE August 11, 2017 RE REYNOLDS AMERICAN INC. – CASH IN LIEU SETTLEMENT ADJUSTED FUTURES SYMBOLS RAI2D/ RAI2J/ RAI2K

Corporate Event Action CE2017-210

DATE August 10, 2017 RE WHOLE FOODS MARKET, INC. – ANTICIPATED CASH SETTLEMENT FUTURES SYMBOL WFM1D DATE ???

Exchange News


Notice to Members 2017-44

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

Notice to Members NTM2017-43

Date: August 15, 2017 Re: OneChicago 2017 FIA Disaster Recovery Testing Effective Dates: September 9 & October 14, 2017

Press Release 8/1/2017

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

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 […]