CHICAGO, April 13, 2011 /PRNewswire/ -- OneChicago, LLC (OCX), an equity finance exchange trading security futures, today announced that it is modifying its trading fee structure to more clearly illustrate the superior financing rates and significant cost savings market participants experience while carrying their equity exposure via security futures. As interest rates rise, the value proposition will be accentuated.
OneChicago fees will be divided into two parts – an execution fee, charged to the executing firm and a daily carry fee, charged to the carrying firm.
OneChicago's execution fee is $20.00 per $1 million (2/10th of a basis point) dollar executed notional value.
OneChicago's carry fee is $1.00 per $1 million (1/100th of a basis point) dollar notional value per day. For fee purposes, OneChicago will cap the settlement price value at $120.00.
Futures on narrow based indexes will remain on a per contract basis at execution with no carry fees. The new fee level for futures on narrow based indexes will be $1.00 per side per contract vs. the current $.50 per side.
"We are always looking for ways to highlight the cost savings and superior financing that security futures provide to our members," said David Downey, CEO of OneChicago. "Using security futures as a financing tool with our new fee rate structure will offer direct comparison to current financing costs for customers. The implementation of this fee structure also sets a new industry standard for trading listed derivatives."
The change will be effective on May 1, 2011.
OneChicago (OCX) is the only US regulated exchange for trading security futures and the related EFP. OCX lists approximately 2,000 products, including ADRs, ETFs and OCX.NoDiv™ contracts. 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, are utilized for synthetic equity strategies including equity swaps, equity repos and stock loan/borrow transactions.
OCX.NoDiv contracts are security futures with dividends removed from the pricing as the future's price is adjusted down by the value of the dividend on the morning of Ex-date.