The Options Clearing Corporation (OCC) proposed a rule change to adjust their rules in alignment with recent updates to Part 39 of the Commodity Futures Trading Commission (CFTC) regulations. These changes include amendments to OCC Rule 602, addressing customer-level margin requirements, and OCC Rule 1103, concerning the suspension of clearing members. The revisions aim to make margin requirements commensurate with the risk of each customer account and incorporate an exception for futures commission merchants that meet certain CFTC conditions. These rules were filed with the Securities and Exchange Commission and became effective immediately to ensure compliance by the January 27, 2021 deadline.
Simple Explanation
The Options Clearing Corporation (OCC) made some changes to their rules to match new government rules about trading. These changes help make sure that the way they handle money and risks for different people who trade with them is fair and safe, and these new rules had to be in place by January 27, 2021.