OneChicago, The Options Clearing Corporation (OCC) and Chicago Mercantile Exchange (CME) have signed official clearinghouse agreements for security futures.
Under the agreements, OCC will function as OneChicago's principal clearinghouse. OCC members will be able to reduce costs by cross-margining their security futures positions against offsetting options positions.
Non-OCC members that are clearing members of CME's Clearing House may clear security futures products at CME without establishing a direct relationship with OCC. Joint OCC/CME member firms may choose to clear trades at OneChicago through either OCC or CME for the first year of trading, after which they must clear though OCC.
William Rainer, chairman and chief executive officer of OneChicago, says: "By offering flexibility in clearing organisations to our customers, OneChicago will enable firms to incorporate single stock futures and narrow-based indices more easily into their existing business processes."
OneChicago is the joint venture created to trade single stock futures and narrow-based stock indices by CME, Chicago Board Options Exchange and Chicago Board of Trade.