OneChicago eyes 'narrow-narrow' indexes
OneChicago will follow up the launch of single-stock futures – slated for mid-April – with the creation of 'narrow-narrow' indexes, according to William Rainer, chairman of OneChicago.
“If, for example, an investor wanted to get exposure to the technology market, one could buy a narrow-narrow index of IBM, Dell, Gateway and Hewlett Packard. It will be a very efficient way to get exposure to that market.”
Rainer also speculated about the potential volume of trading that the new exchange will be able to attract. He said the initial 30 stocks that will be listed on OneChicago have 900 million trades daily in the cash market. Rainer suggested that if the exchange attracted just 10% of the activity of the underlying stock in the cash market, the exchange will be a success.
Rainer added that the exchange was considering listing e-jumbo contracts – a futures contract worth 1,000 shares of each stock. “Liquidity is obviously the most important factor determining the level of success of the exchange,” said Rainer. “We will make the decision about whether to list e-jumbos after deciding whether we think the large contract will fracture liquidity.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Exchanges
Asia’s ETF assets on the rise – HKEX presents the results of Asia ETF survey 2019
Asia’s total ETF assets surged by 23.9% in the first half of 2019 thanks to an increasing adoption of ETFs into investment portfolios. According to a survey conducted by Hong Kong Exchanges and Clearing (HKEX), asset expansion in Asia’s ETF market is set…
NYSE Offers Exchange-Calculated Bitcoin Index, with More to Come
NYXBT will initially be based off data from Coinbase Exchange.
Deutsche Börse to set up Europe's first multi-asset RMB platform
German exchange group signs joint venture deal with CFFEX and Shanghai Stock Exchange
Exchange Revenue Figures Rise, Fall; Data Revenues Continue Steady Increase
A mostly positive mix of Q1 results also yield big increases in data revenues for some exchanges.
Lift-off for ASX Aussie dollar swap clearing business
Volumes jump following revamp of Sydney bourse's clearing incentive scheme
Exchange Data Revenues Make Positive Start to 2015
Acquisitions made up for some shortfalls in exchange revenues
CME looks to local banks for FX liquidity in emerging markets
Chicago-based exchange targets China, India and LatAm growth
