OneChicago: Difference between revisions

OneChicago, LLC
Company type	Private
Industry	Securities Futures Exchange
Founded	May 14, 2001
Headquarters	Chicago, IL, USA
Key people	David Downey (CEO), Thomas McCabe (COO), Mark Esposito (Managing Director of Business Development), Kirk P. Smith (Director of Market Regulations)
Website	www.onechicago.com

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OneChicago is a fully electronic exchange owned jointly by IB Exchange Group (IB), Chicago Board Options Exchange (CBOE), and CME Group (CME). It is a privately held company and is regulated jointly by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The OneChicago corporate headquarters is located in the Chicago Board of Trade building in the heart of Chicagos finacial district. OneChicago offers approximately 2,033 Single-stock futures (SSF) products^[1] with names such as IBM, Apple and Google. All trading is cleared through Options Clearing Corporation (OCC). OneChicago currently operates the only U.S. based securities futures marketplace.

Trading Volume

It was reported by OneChicago on January 4, 2011 that "637,012 security futures contracts traded at the Exchange in December 2010, up 83% over December 2009. The total 2010 trading volume was 4,971,160; up 67% from 2009."^[2]

Electronic platforms and clearing

OneChicago operates two trading platforms for securites futures. The first utilizing the CBOEdirect electronic trading platform and the second OneChicago’s institutional based system for blocks and EFP’s called B.E.T.S. ISV connect to either platform; trading can also be done via an API connection to CBOEdirect.^[3] Members of the CME Group and CBOE are automatically members of OneChicago and any clearing member of the Options Clearing Corporation who is permissioned for Security Futures can also route orders for execution.^[4] OneChicago securities futures may be traded in either a securities account or a futures account.^[5]

Products

Securities Futures Contracts

The exchange offers 2,033 (as of February 22, 2011) security futures, including 10 narrow-based indexes, 253 futures on ETFs and 582 OCX.NoDiv.^[6] A OneChicago single stock futures contract is an agreement to deliver 100 shares of a specific stock at a designated date in the future, called the expiration date. In most cases, four expiration dates are available for trading OneChicago single stock futures.^[7] The traditional futures symbol will consist of the underlying ticker symbol plus “1C”. For instance, the traditional DIA futures will trade as DIA1C.

OCX.NoDiv products are 100 share multiplier futures. The OCX.NoDiv products are available for OCX.BETS, CBOEdirect as well as the OneChicago’s Central Limit Order Book. OCX.NoDiv products treat ordinary dividends as corporate events by adjusting the previous days’ settlement price by the dividend amount the morning of the expiration date. The OCX.NoDiv products trade side by side with the OneChicago’s traditional futures product.^[8] OCX.NoDiv futures produce identical results to stock ownership as the traditional futures regardless of any dividend fluctuations. The OCX.NoDiv symbol will generally consist of the underlying ticker symbol plus “1D”. For instance, DIA OCX.NoDiv futures will trade as DIA1D.^[9]

Exchange Future for Physical (EFP)

An Exchange Futures for Physical (EFP) is a combination order to buy (or sell) an amount of stock and simultaneously sell (or buy) the same number of SSFs. EFP trades allows for the substitution of a short (or long) stock position for a short (or long) SSF position. An EFP is priced in interest rates as there is no underlying price risk since the stock and the SSF are equivalents but does involve interest rate risks as the two parties are simply engaging in a loan as they switch positions. Selling the EFP has the opposite positioning as the SSF is sold and the underlying is purchased.

References

External links

INTERACTIVE BROKERS TO MAKE SIGNIFICANT EQUITY INVESTMENT IN ONECHICAGO. <http://www.onechicago.com/?p=562.html> OneChicago. Retrieved on January 28, 2011.
OneChicago Reports December Volume, Up 83% Over December 2009; Year to Date Volume Up 67% http://www.prnewswire.com/news-releases/onechicago-reports-december-volume-up-83-over-december-2009-year-to-date-volume-up-67-112871489.html prnewswire. January 4, 2011. Retrieved on January 28, 2011.
Product Listing <http://www.onechicago.com/?page_id=756> OneChicago. Retrieved on January 28, 2011.
OneChicago Board http://www.onechicago.com/?page_id=6.html OneChicago. Retrieved on January 28, 2011.
SEC and CFTC Issue Joint Orders on Volatility Indexes and Security Futures

<http://www.sec.gov/news/press/2009/2009-252.htm> SEC. Retrived on February 4, 2011.

Commodity Futures Modernization Act <http://www.cftc.gov/ucm/groups/public/@lrrulesandstatutoryauthority/documents/file/ogchr5660.pdf> CFTC. Retrieved on February 4, 2011.
http://www.marketswiki.com/mwiki/OneChicago_LLC Marketswiki. Retrieved on January 28, 2011.

[1] ttp://www.onechicago.com/?page_id=756

[2] ttp://www.prnewswire.com/news-releases/onechicago-reports-december-volume-up-83-over-december-2009-year-to-date-volume-up-67-112871489.html

[3] ttp://www.onechicago.com/?page_id=7

[4] ttp://www.onechicago.com/?page_id=47

[5] ttp://www.onechicago.com/?page_id=114

[6] ttp://www.onechicago.com/?page_id=756

[7] ttp://www.onechicago.com/?page_id=118

[8] ttp://www.onechicago.com/?page_id=3583

[9] ttp://www.onechicago.com/wp-content/uploads/content2010/OCX%20NoDiv%20Product%20Memo.pdf

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Revision as of 19:01, 23 February 2011 edit Sm4150 (talk \| contribs) 93 edits mNo edit summary ← Previous edit		Revision as of 19:13, 23 February 2011 edit undo Sm4150 (talk \| contribs) 93 edits mNo edit summary Next edit →
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	Exchange Future for Physical (EFP)		Exchange Future for Physical (EFP)

	An Exchange Futures for Physical (EFP) is a combination order to ~~sell~~ (~~buy~~) an amount of stock and simultaneously ~~buy~~ (~~sell~~) a ~~proportionate~~ number of SSFs. An EFP ~~trade~~ allows for the substitution of a ~~long~~ or ~~short~~ stock position for a ~~long~~ or ~~short~~ SSF position. ~~The~~ EFP is priced in interest rates as there is no underlying price risk since the stock and the SSF are equivalents but does involve interest rate risks as the two parties are simply engaging in a loan as they switch positions. Selling the EFP has the opposite positioning as the SSF is sold and the underlying is purchased.		An Exchange Futures for Physical (EFP) is a combination order to buy (or sell) an amount of stock and simultaneously sell (or buy) the same number of SSFs. EFP trades allows for the substitution of a short (or long) stock position for a short (or long) SSF position. An EFP is priced in interest rates as there is no underlying price risk since the stock and the SSF are equivalents but does involve interest rate risks as the two parties are simply engaging in a loan as they switch positions. Selling the EFP has the opposite positioning as the SSF is sold and the underlying is purchased.