Regulatory Release 2013-20


Date: August 22, 2013
Re: Changes to the SSF Block Roll Marketplace on OCX.BETS®
Effective Date: September 23, 2013

In the continuing effort to improve the transparency and integrity of our single stock futures markets, OneChicago, LLC (“OCX”) will be implementing a change that will affect the way traders are permitted to trade block rolls.  Effective September 23, 2013, OCX will no longer permit block rolls to be bilaterally transacted.  Entering a bid or ask in the OCX.BETS system will be the only way to execute a block roll (also commonly referred to as a calendar spread).

As a reminder, in accordance with OCX Rules 409 and 611, market participants may still cross buy and sell orders for all trade types, including block rolls, provided that the Member or Access Person enters one side of the trade (which shall be the Customer’s side in the event that the Member or its affiliate is taking the other side) into OCX’s trading system at least four seconds before entering the order for the opposite side.  See Notice to Members 2012-26 and OCX Rules 409, 610, and 611 for additional information.  Additionally, this change will not affect the way traders may currently trade outright blocks (i.e., those that are not block rolls) and exchange of future for physicals, both of which may continue to be traded bilaterally.

OCX would also like to inform and remind all market participants that the OCX CBOEdirect-hosted markets utilize an “implied spreading functionality” for all single stock futures.  Traders connecting to OCX markets through CBOEdirect can take advantage of the enhanced liquidity for both calendar spreads and outright futures.

Any questions can be directed to OCX operations at 312.424.8507 or operations@onechicago.com.