SEC Affirmation of OCC Capital Plan Strengthens Clearing Organization’s Resiliency

OCC, the world’s largest equity derivatives clearing organization, today applauded the announcement by the U.S. Securities and Exchange Commission (SEC) that, following an independent review of the record by the full Commission, the regulatory agency approved OCC’s capital plan that had been previously approved on behalf of the Commission by SEC staff in March 2015.

In doing so, the SEC said, “Given OCC’s critical clearing functions and its systemic importance, the Commission agrees that having OCC increase its capitalization is appropriate and in the public interest.” The Commission also found that “the Capital Plan does not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the [Exchange] Act.” You can read the complete SEC order on the OCC capital plan at https://www.sec.gov/rules/other/2016/34-77112.pdf.

“We are pleased that the SEC has granted final approval of OCC’s capital plan,” said Craig Donohue, OCC Executive Chairman. “Through this action, the SEC has confirmed that strengthening OCC’s capitalization is a compelling public interest and has acknowledged OCC’s importance to the U.S. financial markets as a Systemically Important Financial Market Utility. OCC’s Capital Plan is a vital component to our goal of providing world-class service to market participants and ensuring the resiliency of an important market utility.”

About OCC

OCC is the world’s largest equity derivatives clearing organization and the foundation for secure markets. Founded in 1973, OCC operates under the jurisdiction of both the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). OCC now provides central counterparty (CCP) clearing and settlement services to 18 exchanges and trading platforms for options, financial futures, security futures and securities lending transactions. More information about OCC is available at www.theocc.com.

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