Search Results for keywords:"credit exposure"

Found 2 results

Search Results: keywords:"credit exposure"

💰 Only
Oldest Newest
  • 2025-06041 — Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Proposed Rule Change, as Modified by Partial Amendment No. 1 and Amendments Nos. 2 and 3, by The Options Clearing Corporation To Establish a Margin Add-On Charge That Would Be Applied to All Clearing Member Accounts To Help Mitigate the Risks Arising From Intraday and Overnight Trading Activity
    💰
    Type:Notice
    Citation:90 FR 15274
    Reading Time:about 84 minutes

    The Securities and Exchange Commission (SEC) has approved a proposal by the Options Clearing Corporation (OCC) to implement a new margin add-on charge aimed at reducing risks from short-dated options trading and intraday activities. This charge will be applied to all clearing member accounts to ensure sufficient financial resources are available to cover credit exposure. The decision comes as a response to the significant increase in trading volume and the associated risks that were not fully addressed under the previous margin system. Despite some industry concerns about potential impacts on competition, the SEC determined that the changes are necessary to safeguard securities and funds while ensuring fair competition.

    Simple Explanation

    The government has approved a new rule where people who trade lots of options, which are like special contracts, will need to have a little extra money set aside. This is to make sure there's enough money to cover their bets, like having extra backup in case something unexpected happens.

  • 2021-02202 — Proposed Agency Information Collection Activities; Comment Request
    Type:Notice
    Citation:86 FR 8010
    Reading Time:about 5 minutes

    The Board of Governors of the Federal Reserve System has issued a notice to seek public feedback on a proposal to continue, for three more years without changes, the recordkeeping requirements related to interbank liabilities. These requirements are detailed under Regulation F and are intended to limit the credit exposure of insured depository institutions to other banks to reduce risk. Public comments are invited on various aspects of the proposal, including its necessity, the estimated burden on respondents, and possible ways to improve or streamline the data collection process. The deadline for submitting comments is April 5, 2021.

    Simple Explanation

    The Federal Reserve wants to hear what people think about keeping the rules for banks when they lend money to each other, to help make sure they don't take on too much risk. They are asking for ideas on how to make these rules easier, and everyone has until April 5, 2021, to share their thoughts.