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Barry Lind was a futures industry legend. The Lind of Lind-Waldock. Barry died in car accident last night. I sat on several committees with him including the first GLOBEX oversight committee. We sat next to each other despite not particularly seeing eye to eye on some topics. The...

Very risky. To hedge a purchase of a discounted future you must get short Delta somewhere. If you choose the underlying stock you will need to borrow it and subject yourself to paying the rebate. If you choose options or another longer dated SSF you will find similar distortions in the...

www.onechicago.com has a great deal of info on SSF. I recently hosted a number of discussions with members of the media that deal with financial transactions. The powerpoint I used is here...

YELP is a Hard-to-Borrow stock. The fees paid to borrow the stock are priced into the SSF as a negative interest rate. This negative rate acts to depress the value of the SSF. As expiration approaches the impact of the negative rate gets reduced and upon expiry the SSF will equal the...

Equity derivative traders (options or futures) are not entitled to dividend distributions unless exercised or taken to delivery prior to ex_date. With that said dividends represent significant risk to the longs and shorts and care must be taken to avoid getting harmed. Sticking to SSF...

Better capital treatment. If the SSF leg is in a futures account they are subject to a higher initial performance bond of ~20%. If the SSF sits in a securities account with the offsetting stock position the bond is ~5%. You can find more margin offsets in our rule book...

While SSF can and should sit in a securities account the answer is no they aren't covered by SIPC. SSF are not an asset. They are a contingent liability that is marked to market every day. Check with your clearing firm for more details. Best.

Sorry, Hmm, so I am currently a little confused: - you do not transact This is correct - you are not a counter party to any transaction This is correct - you are not an exchange (which is contrary to statements on your website) Sorry for the confusion. CME is often...

Hmm, so I am currently a little confused: - you do not transact - you are not a counter party to any transaction - you are not an exchange (which is contrary to statements on your website) - you are not a clearer So, you describe yourself as a financier? A financier who does not...

In a previous post you have asked: "Would you mind telling all of us here how you derive profits for your firm from such transactions?" Of course. We post it on our website. It's the first item under the "Trading@OneChicago" titled Trading Fee Schedule. You can find it here...

________________________________________________________________________ Please understand I am not offended in any way. However I would like to clarify a couple of points. OneChicago is not a securities exchange. We are a Designated Contract Market for the trading of Securities Futures...

You should be able to route to Smart, IBEFP or ONE using the TWS Choose ONE to route the order to our BETS match engine. There is no size requirement for the EFP and your orders for the EFP will be visible by the major Delta One Desks.

Very sorry for the confusion. If you are simply trying to find yield for cash then Selling the EFP is the trade you are after. This works with any stock as long as you are simultaneously long the stock and short the SSF. Investors who are long Hard to Borrow (or even warm to borrow)...

For the above situation where the SSF are trading in a backwardation mode (given a positive interest rate and a positive time horizon with no dividend due to the use of the NoDivRisk contract the future SHOULD be trading contango) all customers who are looking to get long the particular stock...

A simple formula for a NoDivRisk contract is: SSF= Stock + Interest A simple formula for a NoDiv Risk EFP is: EFP= SSF - Stock Which can also be expressed as: EFP=Stock + Interest - Stock The stock cancels out leaving: EFP=Interest Accordingly, as long as the stock is GC name...

There are a number of EFPs that are constantly being quoted with associated sizes displayed. I attached the link in a prior post but will append again: http://www.onechicago.com/?page_id=4289 The above displays only our NoDivRisk contracts as the EFP executed with these are purely...

Can you just walk me through the logistics. Say for this illustration, I wanted to simultaneously long the underlying stock while selling the equivalent SSF. ONXX1D 2012-08 OCX. BID = 0.0700 ASK = 0.0860 I would then take out the above bid price @ .07 by selling or shorting the above EFP...

As a follow up to my last post: I failed to mention that OneChicago has a more institutionally oriented match engine for blocks and EFPs call BETS. (Block and EFP Trading System) Certain brokers allow orders to be routed to BETS directly which will display the order to a wide array of...