Exchange for Physical (EFPs)

Available from Interactive Brokers, LLC

An Exchange for Physical (EFP) allows the swap of a long or short stock position for a Single Stock Future, which has an interest rate built into their price that is determined competitively by numerous market participants. Like Repos and Reverse Repos in the debt markets, EFPs provide a cheap and efficient financing vehicle. The EFP transaction is one where you sell the stock and buy it back for future delivery by buying the SSF future, or you buy the stock and sell the SSF. You do the two legs as one transaction via an EFP.

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