OneChicago Offers OATS OSO Services for Point-and-Click Traded EFPs
New service allows firms to meet FINRA regulatory obligations
Chicago – June 9, 2011 – OneChicago, LLC (OCX), an equity finance exchange listing security futures, announced today that it is now offering Order Audit Trail System (OATS) Order Sending Organization (OSO) services to its customers. The new service supports firms executing point-and-click traded EFPs (Exchange Future for Physical) on the exchange.
The OSO services will facilitate firms meeting their Financial Industry Regulatory Authority (FINRA) OATS regulatory reporting obligations. In addition, the new service is designed to help firms trading EFPs eliminate inefficiencies caused by manual processes and reduce operational risk.
“Our clients are always looking for efficient ways to comply with regulatory mandates,” commented David Downey, CEO of OneChicago. “Firms can rely on our OSO to meet their FINRA obligations, improving access to OneChicago point-and-click traded EFP marketplace for customers and proprietary traders.”
The OneChicago OCX.NoDivRisk™ EFP trade is an exchange traded, central counter party cleared, economic equivalent to OTC equity swaps, equity repos and securities lending transactions.
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OneChicago (OCX) is the only US equity finance exchange for trading security futures and the related EFP. Regulated by the SEC and CFTC, OCX lists approximately 2,000 products, including ADRs, ETFs and OCX.NoDivRisk contracts. Contracts are cleared through the centralized counterparty, “AAA”-rated OCC. Security futures, a Delta one product, are utilized for synthetic equity strategies including equity swaps, equity repos and stock loan/borrow transactions. The OneChicago OCX.NoDivRisk, Exchange Future for Physical transaction is economically equivalent to a Securities Lending Transaction.
OCX.NoDivRisk contracts are security futures with dividends removed from the pricing as the future’s price is adjusted down by the value of the dividend on Ex-date.
For more information, please visit our Website at: http://www.OneChicago.com or contact us at 312-424-8507.