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 CE2017-274

DATE October 17, 2017 RE FIFTH STREET FINANCE CORPORATION – NAME/SYMBOL/CUSIP CHANGE FUTURES SYMBOL FSC1D NEW SYMBOL OCSL1D LTR CODE […]

Corporate Event Action CE2017-273

DATE October 16, 2017 RE TERRAFORM POWER, INC. (ELECTION MERGER) – CONTRACT ADJUSTMENT FUTURES SYMBOLS TERP1D NEW SYMBOLS TERP2D LTR […]

Corporate Event Action CE2017-272

DATE October 16, 2017 RE TWO HARBORS INVESTMENT CORPORATION – DISTRIBUTION AND REVERSE SPLIT FUTURES SYMBOL TWO1D NEW SYMBOLS TWO2D […]

Corporate Event Action CE2017-271

DATE October 16, 2017 RE PHARMERICA CORPORATION – ANTICIPATED CASH SETTLEMENT FUTURES SYMBOL PMC1D DATE ???

Corporate Event Action CE2017-270

DATE October 16, 2017 RE WESTERN REFINING LOGISTICS, LP – ANTICIPATED ADJUSTMENT FUTURES SYMBOL WNRL1D NEW SYMBOL WNRL2D EX-DATE ???

Exchange News


Press Release 10/2/2017

OneChicago Announces Trading Volume for September 2017 CHICAGO – October 2, 2017 – OneChicago, LLC (OCX), a securities finance exchange, […]

Notice to Members NTM2017-49

Date: September 14, 2017 Re: Release of Risk Control & Retiring of OCX.RiskMan Effective Date: September 14, 2017   OneChicago, […]

Notice to Members NTM2017-48

Date: September 7, 2017 Re: Re-Dissemination of Start of Day Exchange Summary Message Effective Date: September 7, 2017

Press Release 9/1/2017

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

Notice to Members 2017-47

Date: August 28, 2017 Re: Labor Day Holiday Trading Hours OneChicago, LLC (“OneChicago”) will be closed on Monday, September 4, […]