City of Providence, Rhode Island Public Retirement System and Single Stock Futures Exchange OneChicago, LLC Announce Dismissal of the High Frequency Trading Action as to OneChicago, LLC
NEW YORK--(BUSINESS WIRE)--The City of Providence, Rhode Island and OneChicago, LLC jointly announce that plaintiff has voluntarily dismissed OneChicago from the securities class action filed in the United States District Court for the Southern District of New York on behalf of the retirement system for the City of Providence, Rhode Island. The class action was filed on behalf of all investors who purchased and/or sold shares of stock in the United States between April 18, 2009 and the present on public stock exchanges or alternate trading venues.
In dismissing the case, the City of Providence acknowledges that OneChicago is not involved in the activity which is the subject of the complaint, which charges the defendants with a scheme whereby the national securities exchanges, together with a defendant class comprised of the brokerage firms, are diverting billions of dollars to themselves by electronic front-running, rebate arbitrage, slow-market arbitrage, layering and contemporaneous trading with their clients and scores of sophisticated high frequency trading firms.
In contrast, OneChicago is an equity finance exchange providing a marketplace for trading security futures, including single stock futures (SSFs). SSFs are a financing tool that allow market participants to carry equity positions at more favorable financing rates due to the competitively derived interest rate which is embedded into the price.
OneChicago paid no amount for the dismissal of the claims.