Federal Register #SR-OCC-2025-018

SEC approves OCC’s revised Clearing Fund contribution allocation methodology

The Securities and Exchange Commission (SEC) approved a rule change proposed by The Options Clearing Corporation (OCC) for allocating clearing members’ Clearing Fund contributions. - Government agency: SEC. - Organization proposing the change: OCC, a registered clearing agency; this is a regulatory matter, not a government procurement. - What changes: Contributions are allocated using three factors: stress loss over initial margin (70%), margin (15%), and cleared volume (15%). Open interest is removed as an allocation factor. - Purpose and scope: The revised methodology is intended to align contributions more closely with each member’s stress-based risk. It changes how contributions are allocated, not the overall size of the Clearing Fund. - Other named party: Fidelity Investments petitioned for review. The summary also refers to comments from market participants and other organizations, without identifying them by name. - Procurement items: No products or services, quantities, or part numbers are requested.

Description

The Securities and Exchange Commission order approves a modified Options Clearing Corporation proposed rule change concerning how Clearing Fund deposit requirements are allocated among clearing members. The proposal introduces a risk-based shortfall allocation and changes the weighting assigned to margin and cleared volume to better align member contributions with stress-based risk. It concerns allocation of collateral contributions and does not change the overall size of the Clearing Fund. The Commission states that it conducted a de novo review and found the proposed rule change consistent with applicable requirements of the Exchange Act.

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