OneChicago, LLC (OCX), an equity finance exchange, today announced it will offer a new suite of products called OCX.Weekly, beginning Friday, June 20.
The exchange will continue to list weekly futures each subsequent Friday. The OCX.Weekly futures will be listed only using the OCX.NoDivRisk contracts and will be physically settled with next day settlement upon expiration as opposed to the T+3 settlement cycle.
The first products will be Friday weekly futures overlaying XLF, XLK, XLI, XLE and AAPL.
Anticipating demand for more flexible products that allow market participants to participate in events for a more defined time period, the exchange will soon launch consecutive weekly futures products extending the listing of the OCX.Weekly futures to each day of the week. The Exchange will launch the additional weekly futures over time as the market acclimates to the new product.
“We created this product to meet the need of the equity finance marketplace to establish or reestablish stock positions within five business days after substituting a stock position for a legally binding contract. Over that period of time, the securities owner receives payment of all interest, dividends and other distributions while maintaining both the risk of loss and opportunity for gain,” said David Downey, CEO of OneChicago. “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.”
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.NoDivRisk futures (“1D”). Each weekly offering will have a separate OneChicago symbol which generally will be the underlying stock plus 1F for the first Friday of the month, 2F for the second Friday of the month, and so forth.
As part of the OCX.NoDivRisk futures product suite, the OCX.Weekly futures will be adjusted for any distributions during the time period they are listed. All other corporation actions are handled in the usual and customary way (please visit the rules and the corporate events section of at www.onechicago.com).
More information can be found at: www.onechicago.com/?page_id=2022