Sat, Jun 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

New futures products seek to shrink settlement timelines

Friday, August 08, 2014

Bailey McCann, Opalesque New York:

Traditionally in the futures markets products are settled on a T+3 timeline. A simplified definition of T+3 is to say they are settled within three days. A new group of futures products is offering a T+1, or one day settlement option and the products are catching the attention of hedge funds.

"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," explains David Downey, CEO of OneChicago in an interview with Opalesque. "T+1 settlements offer more efficiency than what we have now.

OneChicago is a US equity finance exchange for trading security futures and the related EFP. Downey says that the business case for these products is well established, but the changes in operational workflow for prime brokers and technology providers has slowed their creation.

Right now, OneChicago offers 11 of these T+1 products and plans to offer hundreds more. The company is building its own matching engines to get around the technological challenges.

"We already have market makers making markets in these products," Downey says. "The buyside interest is strong but they're facing access limits from their pr......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider