When do SSFs on OneChicago get market makers for the June contracts?

OneChicago said:
Hello all,

The screens are going to go dark after December expiry. If you want to understand why you can read here:
https://www.sec.gov/comments/s7-09-19/s70919.htm

Best

David
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Thanks David, wasn't expecting to hear that!

Is there a specific part I should be looking at? I just see a discussion of 15% vs 20% margin requirements and don't understand what part of that relates to quoting by MMs.

When you say "go dark", do you mean the SSFs won't be actively quoted by MMs or something more? Will retail traders still be able to interact with institutional calendar spreads during the roll period, or place limit orders on the individual SSFs?
 
Monthly spread activity will continue but I am not sure any broker will allow you access.

The issue is Securities Lending. See our discussion on STARS.

Best
David
 
BinaryAlgorithm said:
Really? How do they perform the larger block trades though?
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OneChicago said:
Monthly spread activity will continue but I am not sure any broker will allow you access.

The issue is Securities Lending. See our discussion on STARS.

Best
David
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Thanks David for the disclosure. Does this mean SSF will probably disappear to retail traders ?
 
That would be a travesty. It is retail who pays the highest financing rates.

If we can get to risk based margin then the product becomes more attractive to market makers who are not self clearing entities. As these groups are considered 'customers' of a clearing firm they are subject to the onerous and capital inefficient customer margin levels themselves.

I am working on it but there are no guarantees. It is truly a David vs the Goliaths tale.


Best
David
 
You could always send in a comment to the CFTC or SEC on their joint rulemaking regarding margins. Even if you don't agree with my position it is important for the Commissions to understand all views.

It is in their hands at this point and when they come out with final rules I will certainly post the results.

Best
David
 
OneChicago said:
You could always send in a comment to the CFTC or SEC on their joint rulemaking regarding margins. Even if you don't agree with my position it is important for the Commissions to understand all views.

It is in their hands at this point and when they come out with final rules I will certainly post the results.

Best
David
More...
Do you know if you have to petition to be an intervenor or can you just send comments in?
 
SSFs have never been viable and synthetics do the job. if risk of assignment is imminent then you’re already in an EFP (reversal).

Pin risk, got it.

A solution to a problem that nobody had.

So when do participants need to be flat the 2020 contracts? May be some good info to have.
 
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