OneChicago to launch weekly futures 30 January 2014Chicago Reporter: Mark Dugdale
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OneChicago is planning to release OCX.Weekly futures as part of the OCX.NoDivRisk futures product suite.
Pending regulatory approval, OneChicago will be releasing its physically settled OCX.Weekly futures product with next day settlement for the stock delivery upon expiration.
“This new product will allow funds to engage in short term equity financing transactions in a regulated and centrally cleared environment with the knowledge they can receive their original stock position back with five business days due to the next day settlement of stock,” explained David Downey, CEO of OneChicago.
Large institutional traders currently holding long equity positions are demanding a product that enables them to synthetically loan out their securities via the OneChicago exchange future for physical (EFP) trade. Additionally, the OCX.Weekly futures allow market participants to leverage it for short-term investments of idle cash.
The OCX.Weekly futures will be available to trade for six days. The product is scheduled to list on Fridays and then expire the following Friday at the close of trading.
Physically delivered OCX.Weekly Futures will overlay the same underlying as the OCX.Original (1C) futures and OCX.NoDivRisk futures (1D).
Each weekly offering will have a separate OneChicago symbol, which generally will be the underlying stock plus 1W for the first Friday of the month, 2W for the second Friday of the month, and so on.
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