- OneChicago, LLC
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OneChicago, LLC 
Type Private Industry Securities Futures Exchange 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 OneChicago is an all-electronic exchange owned jointly by IB Exchange Group (IB), Chicago Board Options Exchange (CBOE), and CME Group. It is a privately held company that is regulated by both 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 Chicago's financial district. OneChicago offers approximately 2,272 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.
Contents
History
The Commodity Futures Modernization Act of 2000 legalized U.S. trading in single-stock futures, and two exchanges began operations in November 2002.[2] OneChicago began as a joint venture of CBOE, the Chicago Mercantile Exchange, and the Chicago Board of Trade.[3] The other exchange, NQLX (owned by Euronext.liffe), closed in December 2004[4] and assigned its remaining contracts to OneChicago.[citation needed] In 2006, IB bought 40% of OneChicago, with Chicago Mercantile Exchange and CBOE each retaining 24% and the remainder belonging to the Chicago Board of Trade and OneChicago management.[3] (The Chicago Mercantile Exchange and the Chicago Board of Trade merged in 2007 to form CME Group.[5])
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."[6]
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.[7] 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.[8] OneChicago securities futures may be traded in either a securities account or a futures account.[9]
Products
Securities Futures Contracts
The exchange offers 2,272 (as of April 08, 2011) security futures, including 9 narrow-based indexes, 298 futures on ETFs and 826 OCX.NoDiv.[10] 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.[11] The traditional futures symbol will consist of the underlying ticker symbol plus “1C”. For instance, the traditional DIA futures will trade as DIA1C.
The OCX.NoDivRisk products trade side by side with the OneChicago’s traditional futures product.[12] OCX.NoDivRisk products treat ordinary dividends as corporate events by adjusting the previous days’ settlement price by the dividend amount the morning of the Ex_Date. The OCX.NoDivRisk symbol will generally consist of the underlying ticker symbol plus “1D”. For instance, DIA OCX.NoDivRisk futures will trade as DIA1D.[13]
Exchange Future for Physical (EFP)An Exchange Futures for Physical (EFP) is a combination order to buy (or sell) an amount of underlying stock and simultaneously sell (or buy) the equivalent number of SSFs with a conterparty who buys (or sells) the corresponding underlying (or SSF). EFP trading allows for the trade of a short (or long) underlying position for a short (or long) SSF position.[14] An EFP, as an integrated transaction, has no market exposure risk as the Stock and the SSF have identical delta values. The two parties to the transaction are simply shifting to an equivalent position on more favorable financing terms.
References
- ^ http://www.onechicago.com/?page_id=756
- ^ "Single-Stock Futures Open for Trading", The New York Times, November 9, 2002.
- ^ a b Liz Moyer, "The Wallendas Hit Wall Street", Forbes, March 22, 2006.
- ^ Lind-Waldock, The Complete Guide to Futures Trading: What You Need to Know about the Risks and Rewards (John Wiley and Sons, 2006), ISBN 9780470055595, p. 121. Excerpt available at Google Books.
- ^ Christine Stebbins, "CBOT shares cease trading at Thursday close", Reuters, July 12, 2007.
- ^ http://www.prnewswire.com/news-releases/onechicago-reports-december-volume-up-83-over-december-2009-year-to-date-volume-up-67-112871489.html
- ^ http://www.onechicago.com/?page_id=7
- ^ http://www.onechicago.com/?page_id=47
- ^ http://www.onechicago.com/?page_id=114
- ^ http://www.onechicago.com/?page_id=756
- ^ http://www.onechicago.com/?page_id=118
- ^ http://www.onechicago.com/?page_id=3583
- ^ http://www.onechicago.com/wp-content/uploads/content2010/OCX%20NoDiv%20Product%20Memo.pdf
- ^ http://www.onechicago.com/?page_id=27
External links
Categories:- Stock exchanges in the United States
- Financial services companies of the United States
- Derivatives (finance)
- Securities Lending
- Futures exchanges
- Companies based in Chicago, Illinois
- Economy of Chicago, Illinois
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