Search Results for keywords:"Options Clearing Corporation"

The Securities and Exchange Commission announced that the Options Clearing Corporation (OCC) has filed a rule change to update its schedule of fees. This change, effective February 14, 2025, increases the per contract clearing fee from $0.02 to $0.025 and removes the flat per transaction fee of $55.00 for transactions of 2,751 or more contracts. The OCC states that this update is based on its need to address expected cash flow requirements considering interest rate forecasts, operating expenses, and other financial factors. Comments on this proposed rule change are being accepted until March 17, 2025.

The Securities and Exchange Commission (SEC) has approved a rule change for the Options Clearing Corporation's (OCC) stock loan programs. This change merges OCC's Hedge Program and Market Loan Program into a single, more efficient program. The update aims to simplify the loan process, enhance record-keeping, and expand accessibility for Canadian clearing members while also aligning practices with industry standards. The reform is expected to reduce operational burdens and improve overall effectiveness in managing stock loan transactions.

The Securities and Exchange Commission approved a rule change proposed by the Options Clearing Corporation (OCC) to enhance its risk management systems. This decision aims to better capture risks associated with short-dated options, which have become more prevalent in financial markets. The changes involve aligning model assumptions and developing tailored volatility estimates for options with a short expiration period. Such improvements are intended to help OCC manage financial risks more effectively and ensure the protection of securities and funds in its care.

The Options Clearing Corporation, a self-regulatory organization, filed a proposed rule change with the Securities and Exchange Commission on January 17, 2025. The changes involve updating the Corporation's Risk Management Framework, Corporate Risk Management Policy, and Default Management Policy to align better with current practices and enhance internal governance clarity. These updates have been designated for immediate effect and are not expected to impact the Clearing Members or other market participants. The Commission is soliciting public comments on the proposal until February 21, 2025.

The Options Clearing Corporation (OCC) submitted a rule change to the Securities and Exchange Commission (SEC) on February 24, 2025, seeking to update their contracts and forms that determine the relationship between OCC and its clearing members. These updates aim to reflect recent changes to their rules and operations, ensuring consistency and modernizing their procedures. The proposal, effective immediately, covers various documents like application documents, core agreements, services agreements, appointment forms, and product-specific forms. Interested parties are encouraged to submit comments on the proposed rule change by April 1, 2025.

The Securities and Exchange Commission has approved a proposed rule change from the Options Clearing Corporation (OCC) to enhance its stress testing scenarios. The OCC aims to elevate four existing Informational Scenarios to Sufficiency Scenarios, which will more rigorously test whether it has enough financial resources to cover potential losses during extreme market conditions. This change comes in response to market events observed in March 2020, including extreme price changes, and aims to ensure OCC can manage risks and maintain a stable financial environment in the options market. The Commission granted accelerated approval for these changes to ensure timely implementation and enhanced risk management capabilities.

The Options Clearing Corporation (OCC) has proposed a rule change to adjust its fee schedule, specifically focusing on the Operational Loss Fee, to ensure it aligns with their Capital Management Policy. This change aims to enable the OCC to replenish its capital efficiently if their equity falls below a certain level. The updated fee structure would see clearing members potentially share the cost if OCC's assets drop below required thresholds, with the aim of maintaining stability and fulfilling their obligations. The OCC believes this adjustment is fair and necessary to support their Recovery and Orderly Wind-Down Plan, complying with regulatory requirements.

The Options Clearing Corporation (OCC) proposed a rule to add a margin charge to all clearing member accounts to manage risks from short-dated trading activities. This proposal was initially submitted in July 2024 and has undergone multiple amendments to address concerns and include required information. The Securities and Exchange Commission (SEC) is taking extra time to review the proposal, extending its decision deadline to April 9, 2025, to ensure that all issues are carefully considered.

The Options Clearing Corporation (OCC) filed a proposed rule change to amend the definition of “Fund Share” in its by-laws. This change aligns with the Commodity Futures Trading Commission's (CFTC) advisory indicating that options on spot commodity exchange traded funds (ETFs) are likely to be considered securities, thus falling under SEC oversight. The proposed changes will remove the need for product-by-product exemptions previously sought from the CFTC, providing clearer guidelines for market participants, and ensuring OCC's by-laws remain current and clear. The rule change aims to facilitate the efficient clearance of these options without significantly impacting competition or investor protection.

The Options Clearing Corporation (OCC) has filed a proposal to increase its clearing fees with the Securities and Exchange Commission (SEC), effective January 1, 2025. This change will increase the per contract clearing fee from $0.02 to $0.025 and eliminate the $55.00 per transaction fee for larger transactions, moving to a single fee structure regardless of transaction size. The OCC aims to address anticipated financial needs due to factors like inflation and lower interest incomes while ensuring equitable and reasonable costs for its services. The fee change aligns with maintaining OCC's financial stability and regulatory compliance.