OneChicago Unveils New Name for Innovative Product, OCX.NoDivRisk

CHICAGO, May 4, 2011 /PRNewswire/ -- OneChicago, LLC (OCX), an equity finance exchange that offers security futures, announced today the renaming of its security futures 1D product to OCX.NoDivRisk from OCX.NoDiv. The new identifier for the product suite, which removes dividend risk, better reflects its value to investors.  

(Logo:  http://photos.prnewswire.com/prnh/20020911/ONECHICAGOLOGO)

The OCX.NoDivRisk product suite, launched in Q4 2010, addresses customer's concerns regarding dividend risk when trading security futures. Traditional security futures, like other equity derivatives, requires end users to forecast dividends in determining the desired trade prices. Any dividend forecast errors impact the ultimate profitability of the trade.

The OCX.NoDivRisk product suite removes the dividend risk from the security futures by treating all distributions as corporate events and adjusting the product on ex-date by the amount of the dividend.  

"OCX.NoDivRisk is the first exchange-traded equity derivative without embedded dividend risk. The No Dividend Risk aspect makes the OCX.NoDivRisk product suite a pure financing transaction," said David Downey, CEO of OneChicago. "OTC equity derivative participants can use the OCX.NoDivRisk Exchange for Physical (EFP) transactions today to obtain similar results achieved through equity financing tools, such as equity swaps and equity repo transactions, in an exchange traded, central counterparty environment, rather than waiting for swap execution facilities (SEFs) to launch. This strategy is consistent with Dodd-Frank's intent of moving OTC transactions to exchanges."

More information on the OCX.NoDivRisk product suite can be found here or on our website, www.OneChicago.com

ABOUT ONECHICAGO

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.NoDivRisk 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.

For more information, please visit our website at http://www.OneChicago.com or contact us at 312-424-8507.

SOURCE OneChicago, LLC

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