The Securities and Exchange Commission (SEC) has announced a proposed rule change submitted by The Options Clearing Corporation (OCC) to manage risks from intraday and overnight trading activity. This amendment, known as Amendment No. 3, introduces a new Intraday Risk Charge aimed at mitigating risks associated with rapidly fluctuating intraday trading volumes, particularly "zero-days-to-expiration" options. The rule aims to ensure that OCC's current risk management practices cover such trading activities and includes monitoring thresholds for issuing margin calls. The changes are designed to align with recent SEC rules and industry feedback, with implementation planned for September 2025. The SEC is seeking public comments on these proposed changes.
Simple Explanation
The SEC is thinking about adding a new rule to help keep track of fast-moving trading that happens during the day and at night, like with special kinds of options called "zero-days-to-expiration" options, so they can make sure everyone plays by the rules and keeps things fair. They're asking people what they think about this new idea before they decide what to do in September 2025.