OneChicago Introduces Weekly Futures

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 five stocks and exchange-traded funds (ETF), including Apple and the SPDR ETF.

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 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 5 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,” says 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.”