Federal Register #SR-OCC-2026-007

SEC Notice: OCC and LCH SA Propose Interest Payments and Trade Registration Fund Rule Changes

This notice details proposed rule changes by The Options Clearing Corporation (OCC) and LCH SA, as reviewed by the Securities and Exchange Commission (SEC): - Government Buyer: - Securities and Exchange Commission (SEC), Division of Trading and Markets - OEMs and Vendors Mentioned: - The Options Clearing Corporation (OCC) - LCH SA - Products/Services Requested: - OCC proposes to pay interest to Clearing Members on cash held as margin (excluding XM accounts) and on all cash deposited to the Clearing Fund - Interest rate: Federal Reserve's Interest on Reserve Balances (IORB) minus a 10-basis-point cash management fee - Payments to be made monthly - Includes rule amendment to allow safekeeping of securities customer margin in a Federal Reserve Bank master account - LCH SA proposes amendments to introduce a Trade Registration Fund (TRF) facility and credit tolerance - Enables trade registration even if collateral is insufficient, with margin requirements to be satisfied at the next collateral call - Unique or Notable Requirements: - No specific product part numbers or purchase quantities are specified - Focus is on financial rule changes to incentivize cash deposits, improve liquidity, and align with other central counterparties - No procurement of physical goods or IT solutions; changes are regulatory and operational in nature

Description

This notice announces a proposed rule change filed by The Options Clearing Corporation (OCC) concerning the payment of interest on margin cash. The proposal includes paying Clearing Members interest on cash held as margin (excluding cash held in XM accounts) and on all cash deposited to the Clearing Fund. It also proposes adjusting the cash management fee to 10 basis points on applicable margin and Clearing Fund cash, with interest payments made monthly. Additionally, OCC proposes amending its rules to allow safekeeping of securities customer margin in a Federal Reserve Bank master account to facilitate interest payments.

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