Federal Register #SR-OCC-2026-001

SEC Approves OCC Rule Change on Margin Collateral and Cryptocurrency ETP Risk

This notice announces the SEC's approval of a rule change by the Options Clearing Corporation (OCC) impacting margin collateral and risk management practices: - Government Buyer: - Securities and Exchange Commission (SEC) - Options Clearing Corporation (OCC) as the regulated entity - No OEMs or commercial vendors are involved; this is a regulatory action, not a procurement - No products or services are being requested or procured - Key Regulatory Changes: - Disallows the use of letters of credit and government-sponsored entity (GSE) debt securities as margin collateral at OCC - Updates OCC's margin requirements to address wrong-way risk for Clearing Member positions in exchange traded products (ETPs) holding spot cryptocurrency, specifically when the Clearing Member or its affiliate acts as custodian - Reorganizes and clarifies OCC's collateral rules for improved clarity and operational efficiency - No contract value, line items, or period of performance are applicable, as this is not a procurement opportunity

Description

The Securities and Exchange Commission approved a proposed rule change by the Options Clearing Corporation (OCC) that disallows certain types of collateral, specifically letters of credit and government-sponsored entity (GSE) debt securities, as margin collateral. The change aims to reduce operational costs and complexity in OCC's clearance and settlement systems. Additionally, the OCC updated its margin requirements to mitigate specific wrong-way risk by extending margin add-on charges to Clearing Member positions in exchange traded products holding spot cryptocurrency when the Clearing Member or its affiliate is the custodian. The rule change also includes reorganization and technical updates to OCC's collateral rules for clarity and efficiency.

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