OneChicago Announces OCX.NoDiv™, an Innovative New Product Created as an Equity Finance Tool

Oct 08, 2010, 11:00 ET from OneChicago LLC

CHICAGO, Oct. 8 /PRNewswire/ -- OneChicago LLC, ("OCX"), the only US regulated all-electronic exchange for trading security futures, announced that it has created a new single stock futures product called OCX.NoDiv™.  The new product suite addresses customers' concern regarding the informational disadvantage vis-a-vis dividend payments and their impact on the single stock futures prices by treating all dividend payments as "special dividends" and adjusting the settlement price of the OCX.NoDiv contract on the morning of the ex-date with no corresponding pay and collect cycle.



Applying the long established special dividend adjustment process to the OCX.NoDiv product removes dividend risk.  The OCX.NoDiv product suite will include futures on many of the same underlying as the traditional OCX futures. The first set of the OCX.NoDiv products will include Single Stock Futures on XLB, XLE, XLF, SPY, IWM DIA, JNJ, HNZ and CAT.  Additional products will be added shortly after the initial launch with the higher dividend paying issues that have shown dividend variability listed first.  Pending regulatory approval, the first trading day is planned for October 29, 2010.

"The OCX.NoDiv contract addresses the historical dividend stream informational disadvantage that many market participants have had to cope with.  The adjustment to the previous days' settlement price without a corresponding pay and collect cycle essentially isolates the dividend payment in the SSF product.  Any trader who uses equity derivative products will recognize the value as it removes dividend uncertainty," said David Downey, CEO, OneChicago.

The OCX.NoDiv products will be available on OCX.BETS™, OneChicago's institutional focused platform for Blocks and EFPS, as well as the OneChicago's Central Limit Order Book.

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About OneChicago: OneChicago is the only US regulated all-electronic exchange for trading security futures.  Presently, OneChicago lists approximately 1,467 products, including ETFs.  Contracts are cleared through the centralized counterparty, "AAA" rated, OCC and are regulated by both the SEC and CFTC.  Security futures, a delta one product, function as equity swaps, equity repos and synthetic stock loan/borrow transactions.  For more information, please visit our website at: or contact us at 312-424-8507.