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 CE2017-137

DATE May 23, 2017 RE TEGNA INC. – DISTRIBUTION FUTURES SYMBOL TGNA1D NEW SYMBOL TGNA2D LTR CODE TGNA2D LTR Code: […]

Corporate Event Action CE2017-136

DATE May 23, 2017 RE SOUTHSIDE BANCSHARES, INC. – 2.5% STOCK DIVIDEND FUTURES SYMBOL SBSI1D NEW SYMBOL SBSI2D LTR CODE […]

Corporate Event Action CE2017-135

DATE May 22, 2017 RE BROOKFIELD ASSET MANAGEMENT INC. – DISTRIBUTION FUTURES SYMBOL BAM1D NEW SYMBOL BAM2D LTR CODE BAM2D […]

Corporate Event Action CE2017-134

DATE May 19, 2017 RE ARCELORMITTAL – REVERSE SPLIT FUTURES SYMBOL MT1D NEW SYMBOL MT2D LTR CODE MT2D LTR Code: MTD2 […]

Corporate Event Action CE2017-133

DATE May 19, 2017 RE NATIONAL GRID PLC – SHARE CONSOLIDATION/SPECIAL CASH DISTRIBUTION FUTURES SYMBOL NGG1D NEW SYMBOL NGG2D LTR […]

Exchange News


Corporate Event Action CE2017-138

DATE May 23, 2017 RE DEVRY EDUCATION GROUP INC. – NAME/SYMBOL/CUSIP CHANGE FUTURES SYMBOL DV1D NEW SYMBOL ATGE1D LTR CODE […]

Notice to Members 2017-26

Date: May 22, 2017 Re: Memorial Day Holiday Trading Hours OneChicago, LLC (“OneChicago”) will be closed on Monday, May 29, […]

Notice to Members 2017-25

Date: May 9, 2017 Re: Maintenance to CH1 (350 E. Cermak) Effective Date: May 12, 2017 OneChicago, LLC (“OneChicago”) is […]

Press Release 5/1/2017

OneChicago Announces Trading Volume for April 2017 –   Weekly Futures Propel Year-To-Date Volume to 4.6 Million, an Increase of 18% […]

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 […]