Mon, Jul 6, 2015
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 Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner