Federal Register #SR-OCC-2026-004

OCC Proposal to Establish $1 Billion Commercial Paper Program for Liquidity Management

This opportunity involves a proposed financial program by The Options Clearing Corporation (OCC) as published by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - Program Overview: - OCC proposes to establish a Commercial Paper Program to raise up to $1 billion in prefunded liquidity - The program will issue unsecured debt notes (Commercial Paper) via private placement to institutional investors - Notes will have maturities not exceeding 180 days and be held in a Federal Reserve Bank account - Initially, $250 million of existing non-bank liquidity will be replaced with proceeds from this program - Products/Services Requested: - Issuance and management of unsecured debt notes under the Commercial Paper Program - Notable Requirements: - Amendments to OCC's liquidity risk management frameworks to clarify relationships with dealers, agents, and noteholders - Program is designed to diversify OCC's liquidity resources and enhance settlement obligation management - No specific OEMs or traditional vendors are named, as this is a financial instrument issuance rather than a procurement of goods or standard services

Description

The Options Clearing Corporation (OCC) filed a proposed rule change with the Securities and Exchange Commission (SEC) to establish a Commercial Paper Program as part of its overall liquidity plan. The program aims to raise prefunded liquidity through the private placement of unsecured debt notes to institutional investors, with an aggregate amount not to exceed $1 billion. Initially, OCC plans to replace $250 million of existing liquidity from its non-bank liquidity facility with proceeds from this program. The proposal includes amendments to OCC's liquidity risk management frameworks to clarify relationships with dealers, agents, and noteholders under the program. The SEC is soliciting comments on this proposed rule change.

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