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 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) 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.

The Options Clearing Corporation (OCC) has submitted a proposal for changes to a Master Repurchase Agreement involving a billion-dollar liquidity facility, which is aimed at enhancing their overall liquidity strategy. The proposed change introduces a limited right for the bank counterparty to rehypothecate non-customer collateral, which is intended to make the agreement more commercially appealing and increase funding sources. OCC believes this will strengthen its risk management capabilities and make it easier to manage financial obligations, thus supporting broader financial stability. The Securities and Exchange Commission is inviting public comments on this proposal before making a decision.

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.

The Securities and Exchange Commission is reviewing a proposed rule change by the Options Clearing Corporation (OCC) to enhance its methods for assessing the risks of short-dated options. The OCC plans to adjust how it aligns day-count conventions between option price smoothing and implied volatility scenarios and extend the term structure to better account for options with less than one month to expiration. These changes aim to improve the accuracy of margin and stress testing components, ensuring that the financial risks are well-managed. The rule also outlines the potential impacts on margin requirements and clearing funds, with slight increases expected for accounts with a high concentration of short-dated options.

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.

The Options Clearing Corporation (OCC) submitted a rule change to the Securities and Exchange Commission (SEC) to update its documentation on how it calculates margin requirements for its members. This new document, called the STANS Methodology Description, aims to improve transparency about OCC's risk-based margin system by replacing a previous document while excluding certain outdated or redundant details. The SEC approved the proposal, believing it aligns with existing laws and regulations, and helps OCC manage risk in the event that a member defaults, thereby protecting the funds and securities in its care.

The NYSE Arca, Inc. has proposed a temporary waiver of the Options Regulatory Fee (ORF) for all transactions cleared in the Customer range at the Options Clearing Corporation from December 1, 2024, to December 31, 2024. This waiver is intended to ensure that the ORF collections do not exceed the exchange's regulatory costs, as high trading volumes have increased ORF collections beyond projections, despite a rate reduction. The ORF is set to resume at its current rate on January 1, 2025, and the exchange will monitor costs to decide if further adjustments are necessary. Additionally, the exchange aims to remove outdated fee schedule language for clarity.