onExchange Approved as CFTC-Regulated Derivatives Exchange and Clearinghouse.Business/Technology Editors WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 2, 2001 onExchange Regulatory Structure and Technologies Enable Single Stock Futures and OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). Derivatives Clearing Permitted in New Derivatives Legislation onExchange, Inc., a leading provider of commodity and financial derivatives trading and clearing technology platforms, today announced that it has been designated a fully-regulated futures exchange Futures Exchange Traditionally, a term referring to a central marketplace where futures contracts and options on futures contracts are traded. More recently, with the growth in electronic trading, it is also used to describe the activity of futures trading itself. and clearinghouse by the Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC), the federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C.A. 4a), approved October 23, 1974. (CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). ). With its regulatory approval, onExchange can trade futures through its onExchange Board of Trade subsidiary and clear futures and other derivatives through its onExchange Clearing Corp. subsidiary. onExchange is the first exchange approved under the newly enacted Commodity Futures Modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, Act of 2000, the first fundamental overhaul to the nation's derivatives laws in more than 25 years. The Act revises existing commodity futures and OTC derivatives regulation and permits new markets in single stock futures. "onExchange was created to enable new market structures, including security futures and OTC derivatives clearinghouses permitted under the Commodity Futures Modernization Act," said Philip McBride Sir Philip Albert Martin McBride PC KCMG (18 June 1892 – 14 July 1982) was an Australian politician. McBride was born into a well-known pastoral family[1] and educated at Burra Public School and Prince Alfred College in Adelaide. Johnson, an onExchange advisor and former CFTC chairman. "In addition, the CFTC action, combined with onExchange's next generation technology, gives the company unsurpassed flexibility to pursue business opportunities and to tailor its services to the needs of virtually every sector in the economy." By partnering with onExchange, electronic markets will now be able to offer integrated access to regulated futures as well as spot, forwards and swaps instruments on a single, straight-through-processing platform. These electronic markets gain competitive advantages in terms of credit management, financial and market integrity, liquidity and price transparency Price Transparency The accessibility of information on the order flow for a particular stock, allowing knowledge of the quantities of stock being offered and the bids at the various price levels. Also referred to as "market depth. . "CFTC approval is the culmination of nearly two years of collaboration with industry professionals and the Commission," said Richard Jaycobs, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of onExchange. "We believe the new law greatly enhances the substance and value of the designation process. This value is directly applicable to traditional financial and commodity markets as well as new marketplaces." In addition to its regulated activities, onExchange licenses its trading and clearing technology to operators of online commercial and dealer markets and existing OTC, futures and securities exchanges. In December, onExchange licensed its RealTime Clearing(SM) technology to EnergyClear, the first energy-industry-sponsored OTC derivatives clearinghouse. About the onExchange Platform onExchange's digitalDerivatives(SM) framework combines the most useful elements of conventional futures and options exchanges and OTC derivatives markets The derivatives markets are the financial markets for derivatives. The market can be divided into two, that for exchange traded derivatives and that for over-the-counter derivatives. with innovations optimized for online transactions. onExchange's straight-through-processing derivatives exchange and clearinghouse systems provide online markets with a comprehensive trading capability for regulated and OTC derivatives including trading and clearing systems, product design, marketing and regulatory expertise and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. . All onExchange systems can be implemented modularly or in a comprehensive trading, clearing and risk management solution. About onExchange onExchange technology systems enable electronic exchanges to extend their spot trading and procurement systems by including financial risk management transactions. The Company also provides turn-key trading, clearing and risk management technology solutions to existing commodity and financial markets, including regulated futures exchanges This is a list of futures exchanges. Those stock exchanges that also offer trading in futures contracts besides trading in securities are listed both here and the list of stock exchanges. and broker-dealer markets. onExchange is privately held and headquartered in Waltham, Mass. The Company's Web site address is www.onexchange.com. onExchange, digitalDerivatives, onClear and RealTime Clearing are service marks of onExchange, Inc. |
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