OneChicago to launch OCX weekly
18 June 2014 Chicago
Image: Shutterstock
OneChicago will launch a new line of products called OCX.Weekly, which will list weekly futures each Friday.
Listed using the OCX.NoDivRisk contracts, OCX.Weekly futures will be settled next day.
David Downey, CEO of OneChicago, said: “We created this product to meet the need of the equity finance marketplace to establish or re-establish stock positions within five business days after substituting a stock position for a legally binding contract.”
The OCX.Weekly futures will be available to trade for six days. They will 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.NoDivRisk futures (1D). Each weekly offering will have a separate OneChicago symbol, which will generally be the underlying stock plus 1F for the first Friday of the month, 2F for the second Friday of the month and so on.
Downey added that over the five business days: “The securities owner will receive all payment of all interest, dividends and other distributions while maintaining both the risk of loss and opportunity for gain.”
“This, combined with the ability to settle the cash and stock the next the day rather than the T+3 cycle, will be much more efficient and provide a significant utility to the equity finance marketplace.”
Listed using the OCX.NoDivRisk contracts, OCX.Weekly futures will be settled next day.
David Downey, CEO of OneChicago, said: “We created this product to meet the need of the equity finance marketplace to establish or re-establish stock positions within five business days after substituting a stock position for a legally binding contract.”
The OCX.Weekly futures will be available to trade for six days. They will 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.NoDivRisk futures (1D). Each weekly offering will have a separate OneChicago symbol, which will generally be the underlying stock plus 1F for the first Friday of the month, 2F for the second Friday of the month and so on.
Downey added that over the five business days: “The securities owner will receive all payment of all interest, dividends and other distributions while maintaining both the risk of loss and opportunity for gain.”
“This, combined with the ability to settle the cash and stock the next the day rather than the T+3 cycle, will be much more efficient and provide a significant utility to the equity finance marketplace.”
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