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.
Simple Explanation
The Options Clearing Corporation wants to change some rules so that if they lose money, they can ask their member companies to help pay to keep everything running smoothly. This plan makes sure they have enough money to keep doing their job well and follow the rules.