The Securities and Exchange Commission (SEC) approved a rule change proposed by The Options Clearing Corporation (OCC) to amend its governance documents to align with SEC rules. The changes focus on ensuring board independence, enhancing third-party provider risk management, and improving transparency in governance. Specifically, the amendments require a majority of board and committee members to be independent, clarify responsibilities for managing third-party services, and update criteria for board member evaluation. These updates aim to strengthen the governance and accountability of the OCC.
Simple Explanation
The Securities and Exchange Commission (SEC) has said it's okay for a group that handles options trading to change some of its rules so that it follows new SEC rules. These changes will help make sure the group is run better by having more fair and clear ways of picking people in charge.