7/29/2019 OneChicago Fact Sheet

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About OneChicago:

An equity finance exchange providing a marketplace for trading single stock futures

Currently lists approximately 2,800 single stock futures including 400 ETFs, MLPs, ADRsand REITS*

Regulated by both the SEC and CFTC

All trades clear through AA+ rated OCC, f/k/a The Options Clearing Corporation

Can be traded electronically in our central order book, as blocks or as Exchange forPhysical (EFPs)

What are Single Stock Futures (SSF)?

SSF are futures contracts on individual stocks and ETFs priced to a future expiration date

SSFs settle through the physical delivery of the underlying stock, not cash

SSFs can be held in either a securities account under FINRA/SEC rules or in a futuresaccount under NFA/CFTC rules

Liquidity is based on the underlying cash market as market makers are committed tomaking continuous two-sided markets

Benefits of Single Stock Futures:

SSFs are a financing tool that allow market participants to carry equity positions at morefavorable financing rates due to the competitively derived interest rate

SSF lower the cost of carrying long and short equity positions

The OCX.NoDivRisk EFP meets the technical requirement of IRS code 1058,providing a central counterparty cleared, exchange traded product for stock loantransactions

The EFP is the economic equivalent of an OTC equity swap or equity repo

SSFs provides the ability to capture the full negative short interest of hard to borrowstocks

SSFs frees up working capital thus increasing operating cash flow

SSFs can be used to create a custom basket index

Theoretical Price:

The pricing for traditional 1C products is based on the underlying stock + interest(maybe negative due to hard to borrow pressure) until expiration dividend.

o Traditional 1C SSF = stock XYZ x (1 + (i/360) x days) dividend

The pricing for the OCX.NoDivRisk product is based on the underlying stock + interest(maybe negative due to hard to borrow pressure)until expiration. The OCX.NoDivRiskproduct removes dividend risk from the SSF.

o OCX.NoDivRisk SSF = stock XYZ x (1 + (i/360) x days)

Exchange Execution Advantages:

All trades clear through AA+ rated OCC

No multiple ISDA documentation is required

Minimizes the need to perform ongoing credit analysis and collateral management

Market Participants in Single Stock Futures:

Asset Managers, Delta-One Trading Desks, Equity Finance Teams, Hedge Funds,Market Makers, Pension funds, Proprietary Trading Firms, and Retail Investors

For more information please visit: www.onechicago.com or contact David Downey,ddowney@onechicago.com, 312.424.8520*As of January 2012