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Gaining access will be the lift as the product competes with the financing processes (margin lending, Delta 1, Sec Lending and Equity Repo) at the brokerages. Customers either come through the FCM side of the world or through IBKR. Our STARS (Securities Transfer and Return Spreads) were...

If you are looking to establish short delta exposure in particular names you should consider selling SSF instead. In this way you are selling a derivative with an interest component already priced in. For Hard to Borrow names you can use our STARS transactions to Transfer your current long...

http://www.almcms.com/contrib/content/uploads/sites/292/2017/08/Complaint.pdf This is the original.

A new lawsuit was filed today by a second law firm. The first was filed last fall with the plaintiffs being 3 pension funds. That complaint was amended a few months later and an additional pension fund as well as a hedge fund were added. The complaint today was filed by QS Holdco Inc which...

Clarifying language to extend IRC 1058 to exchange traded products was in a piece of legislation that was not part of the broader tax reform package due to its bipartisan support. The Democrats did not want anything in the tax vehicle that they would want to vote for. A bizarre political...

Securities Lending fees are expressed as an interest rate. Changes in these interest rates affect forward values but not spot prices. Perhaps this was a hard to borrow name with a high borrow fee that went into a warm to borrow or even GC. This would explain the phenomena if the options...

Our products compete with equity finance desks generally. We do not route orders and I don't envision every doing that. Firms can continue to execute EFPs and report the activitiy to the exchange. Our STARS offering replicates an EFP but because the transfer of the underlying takes place T+1...

Sorry for the delay. "put up barriers to discourage day trading" - why? you don't want to make money? I think there are plenty of execution arenas that already support day trading and I have nothing new to add. As I mentioned in my prior post users of our products are investors first. They...

I am sorry for the confusion. I have re-read my post and concluded that if I were to write it again it would be the same language. Let me address you points. 1.I maintain that liquidity is in the eye of the beholder even though it may sound 'bizarre and aloof' (thank you that. It made me...

I really didn't know there were Spy futures. But , why Spy futures are in cntango and not in backwardation as is supposed to be. Equity derivative contracts adjust for any dividend events during the term of the trade. Most exchange traded equity derivatives reduce the forward value by the...

Yes. I did discuss earlier in this thread our efforts to move towards trading out to four decimals in our CLOB. This will allow us to convert all trading to basis points whereby everyone will bid in bps instead of outright decimal places. One fire at a time.

SSF are a tool used by investors who hold assets for term. It is not a product to be scalped in and out of. The primary use of this Delta 1 derivative is as a synthetic replacement for an underlying position while participating in Securities Lending or Equity Repo. Out of curiosity...what...

There have been two requests. Neither has made it past presubmission discussions with SEC staff. CBOE pulled a request without comment a few years ago. OneChicago is pressing forward but we are facing very stiff resistance. It is not an OCC issue.

SEC has historically refused to allow for cash settled derivatives. There have been some rule filings by exchanges that have been subsequently pulled. They fear a manipulator entering into the public auction markets and moving options into and out of the money.

General Collateral - widely available underlyings. Hard to Borrow (HTB or 'specials') are underlyings that are more difficult to find a locate for and the borrow rates reflect that short supply. The borrow rates are controlled by hidden forces that produce large income streams for...

Sorry...my poor typing: "......but you can't reprice if rates go higher.

HTB as well. Transfer the underlying and replace with a Delta 1 equivalent derivative priced at a discount which represents the borrow fee. Locking in the fee is a double edged sword as it can't be recalled if rates decline but you can reprice if rates go higher.

Liquidity is in the eye of the beholder. We do not have thousands of 1 lots massed on the bid and ask 1 to three ticks apart. Our liquidity comes in the form of large size trades going up at one price in one transaction with the majority of these trades being completed via spreads. Spreads...

You could sell a Delta 1 Single Stock Future.