Notice2025-03071
Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Advance Notice Relating to The Options Clearing Corporation's Proposed Amendments to Certain Key Terms of a Master Repurchase Agreement for a Committed Liquidity Facility With a Bank Counterparty as Part of the Options Clearing Corporation's Overall Liquidity Plan
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 26, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 37 (Wednesday, February 26, 2025)</title>
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[Federal Register Volume 90, Number 37 (Wednesday, February 26, 2025)]
[Notices]
[Pages 10734-10738]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03071]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-102462; File No. SR-OCC-2025-801]
Self-Regulatory Organizations; The Options Clearing Corporation;
Notice of Filing of Advance Notice Relating to The Options Clearing
Corporation's Proposed Amendments to Certain Key Terms of a Master
Repurchase Agreement for a Committed Liquidity Facility With a Bank
Counterparty as Part of the Options Clearing Corporation's Overall
Liquidity Plan
February 20, 2025.
Pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, entitled Payment, Clearing
and Settlement Supervision Act of 2010 (``Clearing Supervision Act'')
\1\ and Rule 19b-4(n)(1)(i) \2\ of the Securities Exchange Act of 1934
(``Exchange Act'' or ``Act''),\3\ notice is hereby given that on
February 14, 2025, The Options Clearing Corporation (``OCC'' or
``Corporation'') filed with the Securities and Exchange Commission
(``Commission'') an advance notice as described in Items I, II and III
below, which Items have been prepared primarily by OCC. The Commission
is publishing this notice to solicit comments on the advance notice
from interested persons.
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\1\ 12 U.S.C. 5465(e)(1).
\2\ 17 CFR 240.19b-4(n)(1)(i).
\3\ 15 U.S.C. 78a et seq.
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I. Clearing Agency's Statement of the Terms of Substance of the Advance
Notice
This advance notice is submitted in connection with a proposed
change to its operations in the form of amendments to certain key terms
of a Master Repurchase Agreement for a committed liquidity facility
with a bank counterparty as part of OCC's overall liquidity plan. The
proposed change does not require any changes to the text of OCC's By-
Laws or Rules. All terms with initial capitalization that are not
otherwise defined herein have the same meaning as set forth in the OCC
By-Laws and Rules.\4\
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\4\ OCC's By-Laws and Rules can be found on OCC's public
website: <a href="https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules">https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules</a>.
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II. Clearing Agency's Statement of the Purpose of, and Statutory Basis
for, the Advance Notice
In its filing with the Commission, OCC included statements
concerning the purpose of and basis for the advance notice and
discussed any comments it received on the advance notice. The text of
these statements may be examined at the places specified in Item IV
below. OCC has prepared summaries, set forth in sections (A) and (B)
below, of the most significant aspects of these statements.
(A) Clearing Agency's Statement on Comments on the Advance Notice
Received From Members, Participants or Others
Written comments were not and are not intended to be solicited with
respect to the proposed change and none have been received.
(B) Advance Notice Filed Pursuant to Section 806(e) of the Payment,
Clearing, and Settlement Supervision Act
Description of the Proposed Change
OCC is the sole clearing agency for standardized equity options
listed on national securities exchanges registered with the Commission.
In its role as a registered clearing agency, and as a derivatives
clearing organization (``DCO'') registered with the Commodity Futures
Trading Commission (``CFTC''), OCC acts as a central counterparty
(``CCP'') that guarantees all contracts it clears. That is, OCC becomes
the buyer to every seller and the seller to every buyer. In its role as
guarantor, OCC is exposed to risks from a Clearing Member's failure to
fulfill its obligations. In the event of a Clearing Member default, OCC
would be obligated to fulfill that member's cleared transactions and
meet settlement obligations in a timely manner.
OCC manages these financial risks by maintaining an overall
liquidity plan that provides access to a diverse set of funding
sources, including a syndicated bank credit facility \5\ and a program
for accessing additional committed sources of liquidity that do not
increase the concentration of OCC's counterparty exposure (``Non-Bank
Liquidity Facility'').\6\ These facilities provide OCC with cash in
exchange for collateral, such as U.S. Government securities deposited
by Clearing Members in satisfaction of their Clearing Fund
requirements. Together with the minimum amount of cash OCC requires
each Clearing Member to deposit in the Clearing Fund (``Clearing Fund
Cash Requirement'') \7\ and any excess cash a Clearing Member may
choose to maintain up to its required Clearing Fund contribution,\8\
the facilities comprise part of OCC's qualifying liquid resources to
satisfy its regulatory obligations.\9\
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\5\ See, e.g., Exchange Act Release No. 88971 (May 28, 2020), 85
FR 34257 (June 3, 2020) (SR-OCC-2020-804).
\6\ See, e.g., Exchange Act Release No. 89039 (June 10, 2020),
85 FR 36444 (June 16, 2020) (SR-OCC-2020-803).
\7\ See OCC Rule 1002.
\8\ Clearing Members that choose to satisfy their Clearing Fund
requirement with more than the minimum amount of cash may choose to
do so, in part, because of the interest earned on Clearing Fund cash
held at a Federal Reserve Bank, which OCC passes through to the
Clearing Member. See OCC Rule 1002(b). Substitution of U.S.
Government securities in place of excess cash is subject to a two-
day notification period, which aligns with OCC's liquidation time
horizon for managing a Clearing Member default. See OCC Rule
1002(a)(iv). Accordingly, OCC considers excess cash up to the
Clearing Member's Clearing Fund requirement as part of its
``Available Liquidity Resources'' under its Liquidity Risk
Management Framework. See Exchange Act Release No. 89014 (June 4,
2020), 85 FR 35446, 35447 (June 10, 2020) (SR-OCC-2020-003).
\9\ See 17 CFR 17ad-22(e)(7)(i) (requiring covered clearing
agencies to, among other things, maintain sufficient liquid
resources to effect same-day and, where appropriate, intraday and
multiday settlement of payment obligations with a high degree of
confidence under a wide range of foreseeable stress scenarios that
includes the default of the participant family that would generate
the largest aggregate payment obligation in extreme but plausible
market conditions); 17 CFR 39.11(e) (requiring that a DCO
effectively measure, monitor, and manage its liquidity risks such
that it can, at a minimum, fulfill its cash obligations when due and
that that financial resources allocated to meet its requirements
shall be sufficiently liquid to enable the DCO to fulfill its
obligations as a central counterparty during a one-day settlement
cycle).
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[[Page 10735]]
In 2020, OCC also entered into a one-year Master Repurchase
Agreement (``MRA''), otherwise known as a ``repo,'' with a bank
counterparty,\10\ and most recently in 2022 filed an advance notice to
establish an MRA with a bank counterparty on an ongoing basis with a
commitment amount of up to $1 billion (the ``Bank Repo Facility'').\11\
Under the Bank Repo Facility, the buyer (i.e., the bank counterparty)
would purchase U.S. Government securities from OCC from time to time in
exchange for a buyer payment to OCC in immediately available funds
(``Purchase Price''). The buyer would simultaneously agree to transfer
the purchased securities back to OCC at a specified later date
(``Repurchase Date''), or on OCC's demand against the transfer of funds
from OCC to the buyer, where the funds would be equal to the
outstanding Purchase Price plus the accrued and unpaid price
differential (together, ``Repurchase Price''). The 2022 advance notice
also discussed the MRA terms OCC would require under the Bank Repo
Facility, including that, like the current Non-Bank Liquidity
Facility,\12\ the buyer may not pledge, charge, encumber, hypothecate,
transfer, dispose of, or otherwise grant any third party any interest
in (i.e., ``rehypothecate'') any eligible securities.\13\ This
prohibition on rehypothecation was intended to prevent the bank from
granting any third party an interest in purchased securities in order
to reduce the risk that the third party could interfere with the
buyer's transfer of the U.S. Government securities collateral to OCC on
the Repurchase Date.\14\
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\10\ See Exchange Act Release No. 88317 (Mar. 4, 2020), 85 FR
13681 (Mar. 9, 2020) (SR-OCC-2020-801).
\11\ See Exchange Act Release No. 95669 (Sept. 2, 2022), 87 FR
55064 (Sept. 8, 2022) (SR-OCC-2022-802).
\12\ Exchange Act Release No. 89039, supra note 6, at 36445 n.14
and accompanying text.
\13\ See Exchange Act Release No. 95669, supra note 11, at
55064-66.
\14\ Id.
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The parties have yet to execute the Bank Repo Facility following
the Commission's notice of no objection for OCC's 2022 advance notice.
The prohibition on rehypothecation is not a standard feature for
bilateral repo transactions like the one contemplated by the Bank Repo
Facility and its inclusion in the MRA made the transaction less
commercially appealing to the bank counterparty than initially
anticipated. The delay in implementing the Bank Repo Facility has not,
however, materially affected OCC's liquidity risk management because
OCC has, since its 2022 expansion of the Non-Bank Liquidity
Facility,\15\ generally maintained sufficient capacity under its other
committed facilities to exchange all U.S. Government securities
deposited in respect of the Clearing Fund.
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\15\ See Exchange Act Release No. 89039, supra note 6.
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Proposed Change
On a regular basis, OCC reviews its access to such liquidity
facilities to calibrate its potential funding requirements to meet
payment obligations under stressed market conditions. The review and
ongoing negotiations with the bank counterparty identified an
opportunity for OCC to provide terms that would be more commercially
attractive, thereby allowing OCC and its bank counterparty to move
forward with the Bank Repo Facility. Specifically, OCC proposes to
modify the Bank Repo Facility to provide for a limited right to
rehypothecate the non-customer collateral,\16\ provided that the
rehypothecation is: (i) within a tri-party repo program \17\ of a
third-party custodian where the buyer would hold the eligible
securities in a custodial account; and (ii) only to a third-party cash
investor (e.g., large institutional money market funds) that is legally
restricted from further pledging, charging, encumbering, hypothecating,
transferring, disposing of or otherwise granting any interest in the
purchased securities. These limitations would ensure that the
securities remain at the buyer's custodial bank in a segregated account
on behalf of the third-party cash investor. OCC believes these terms
would create the required commercial incentives to move forward with
the Bank Repo Facility. The remainder of the other terms and conditions
of the Bank Repo Facility addressed in the 2022 advance notice would
remain unchanged, including the conditions under which OCC would file
another advance notice with respect to annual renewals or changes to
the Bank Repo Facility.\18\
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\16\ Clearing Fund collateral and non-customer margin collateral
of any suspended Clearing Member may be pledged under the Bank Repo
Facility. OCC Rule 1006(f) and OCC Rule 1104(b) provide for and
authorize OCC to obtain funds from third parties to meet its
obligations. The officers who may exercise this authority include
the Chairman, Chief Executive Officer, and Chief Operating Officer.
Clearing Fund collateral is distinct from, and does not include,
margin collateral related to customer positions.
\17\ Tri-party repos use a custodian bank that provides
collateral valuation, margining, and management services to the
counterparties to the agreement. OCC understands that unlike with
respect to the bilateral repo market, prohibiting further
rehypothecation is not uncommon in the tri-party repo market.
\18\ Exchange Act Release No. 95669, supra note 11, at 55066
(``OCC would submit another advance notice with respect to such
renewal for the same term only under one of the following
conditions: (1) OCC determines its liquidity needs merit funding
levels above the $1 billion; (2) OCC should seek to change the terms
and conditions of the MRA in a manner that materially affects the
nature or level of risk presented by OCC; (3) OCC should seek to add
counterparties or substitute the bank counterparty to the Bank Repo
Facility program; or (4) the bank counterparty has experienced a
negative change to its credit profile or a material adverse change
since the latest renewal of the MRA'').
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Anticipated Effect on and Management of Risk
Like any liquidity resource, the Bank Repo Facility would involve
certain risks, most of which are standard to any repo transaction. OCC
has structured the program to mitigate and address such risks. As
discussed above, OCC plays a crucial role as a clearing agency by
ensuring timely fulfillment of settlement obligations and mitigating
the risks related to settlement failures. Therefore, it is essential
for OCC to have continuous, reliable, and consistent access to funds
from a diverse group of liquidity sources to settle its obligations. In
removing the prohibition and establishing a limited rehypothecation
right, OCC believes it can expand access to new sources of funding by
offering standard market terms that would encourage the bank
counterparty to enter into and execute an MRA pursuant to the revised
terms of the Bank Repo Facility. OCC understands that the ability to
rehypothecate would provide the bank with favorable capital treatment,
allowing for reduced pricing and a larger commitment size (subject to
the Bank Repo Facility's currently approved $1 billion maximum).
Increasing access to additional sources of liquidity would, in turn,
promote the reduction of OCC's liquidity risk from the default or
suspension of a member or the other circumstances in which it may
access the Clearing Fund to meet liquidity needs.
The Bank Repo Facility, once in place, would also help OCC address
the risks arising from a change in circumstances that may remove or
restrict access to one or more of OCC's other current liquidity
facilities. This facility would act as an alternative source of
liquidity providing OCC with ability to reallocate across existing
facilities as necessary to avoid a
[[Page 10736]]
shortfall in its overall resources and meet liquidity demands relative
to OCC's base liquidity resources. The new facility will also help OCC
to operationally manage allocations across funding sources more
effectively based on pricing, market conditions, and liquidity needs.
Furthermore, OCC believes it can mitigate the risks attendant to
the Bank Repo Facility without prohibiting rehypothecation by the
buyer. First, nothing in OCC's current By-Laws or Rules limit how OCC
may use the Clearing Fund collateral, or what rights it may grant
others in respect of Clearing Fund collateral, to address a Clearing
Member default or other circumstance in which use of Clearing Fund
collateral is permitted. To the contrary, OCC is authorized to take
possession of the Government securities deposited by Clearing Members
as contributions to the Clearing Fund to borrow or otherwise obtain
funds through means determined to be reasonable at the discretion of
OCC's Chairman, Chief Executive Officer or Chief Operating Officer,
including, without limitation, pledging such assets as security for
loans or using such assets to effect repurchase, securities lending or
other transactions.\19\
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\19\ See OCC Rule 1006(f)(2)(A)(iii).
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Second, OCC has already mitigated one of the risks relating to the
prohibition on rehypothecation. Prior to 2021, there was ambiguity as
to whether OCC was obligated to honor a Clearing Member's request to
substitute Clearing Fund collateral after OCC had initiated a draw
through one of the facilities, or otherwise initiated a borrowing using
Clearing Fund collateral under OCC Rule 1006(f). Given this ambiguity,
OCC has historically included terms in its facilities that would allow
OCC to substitute any collateral by a specified time so that OCC could
then honor its Clearing Members' substitution requests.\20\ The
prohibition on rehypothecation facilitated such substitution by
ensuring that a third party could not interfere with OCC's ability to
honor a Clearing Member's substitution request. However, OCC has since
amended OCC Rule 1006(f) to make clear that OCC has the authority to
reject substitution requests for securities contributed to the Clearing
Fund that the Corporation has taken possession of to borrow funds from
OCC's liquidity facilities.\21\ While OCC may facilitate substitutions
following a draw as a convenience and accommodation to Clearing
Members, it is no longer required to do so.
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\20\ See, e.g., Exchange Act Release Nos. 95669, supra note 11,
at 55065 n.25 and accompanying text; 88317, supra note 10, at 13682;
73979 (Jan. 2, 2015), 80 FR 1062, 1064 (Jan. 8, 2015) (SR-OCC-2014-
809).
\21\ See Exchange Act Release No. 89014, supra note 8, at 35450.
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Third, OCC would mitigate the risk that a third-party could
interfere with the buyer's ability to return the purchased securities
on the Repurchase Date through the limitations on the rehypothecation
right that OCC is proposing based on its negotiations with the bank
counterparty. Such rehypothecation would be limited to cash investors
(e.g., large institutional money market funds) who are party to a tri-
party repo agreement with the bank counterparty. These third parties
would be prohibited from themselves rehypothecating the collateral,
which would be maintained in the tri-party custodial bank.
Additionally, a bank counterparty's failure to return the Clearing Fund
collateral on the Repurchase Date due to the interference of a third-
party or otherwise would itself be a condition under which OCC could
utilize Clearing Fund collateral or charge the Clearing Fund in order
to manage OCC's liquidity risk and meet daily settlement
obligations.\22\
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\22\ See OCC Rule 1006(a) (providing that the Clearing Fund may
be used for borrowings, or to make good losses or expenses suffered
by OCC resulting from borrowings, as a result of, among other
things, the failure of any bank to perform its obligations to OCC);
Rule 1006(f)(1)(C) (authorizing OCC to initiate a borrowing using
Clearing Fund collateral when OCC reasonably believes it necessary
to borrow to meet its liquidity needs for daily settlement as a
result of, among other things, the failure of any bank to perform
any obligation to OCC when due).
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Finally, OCC's rights under the agreement would not be impaired by
the bankruptcy or receivership of the bank counterparty. A repo falls
within the safe harbors from an automatic stay under the Bankruptcy
Code.\23\ A repo is also a qualified financial contract (``QFC'') under
the Federal Deposit Insurance Act (``FDIA'') \24\ and Title II of Dodd-
Frank.\25\ Accordingly, OCC's rights under the repo agreement to
terminate, liquidate or accelerate would not be subject to the 90-day
stay in receivership.\26\
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\23\ 11 U.S.C. 559.
\24\ 12 U.S.C. 1821(e)(8)(D)(ii)(I). The FDIA is applicable to
insured national banks and state-charted banks when an institution
becomes insolvent and the Federal Deposit Insurance Corporation
(``FDIC'') is appointed as a receiver.
\25\ 12 U.S.C. 5390(c)(8)(D)(i). Title II of Dodd-Frank is
applicable to FDIC-insured banks that are designated as systemically
important financial institutions (``SIFIs'').
\26\ See, e.g., 12 U.S.C. 5390(c)(8)(A) (``no person shall be
stayed or prohibited from exercising . . . (i) any right that such
person has to cause the termination, liquidation, or acceleration of
any [QFC] with a covered financial company which arises upon the
date of appointment of the [FDIC] as receiver for such covered
financial company or at any time after such appointment'').
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Consistency With the Payment, Clearing and Settlement Supervision Act
The stated purpose of the Clearing Supervision Act is to mitigate
systemic risk in the financial system and promote financial stability
by, among other things, promoting uniform risk management standards for
systemically important financial market utilities and strengthening the
liquidity of systemically important financial market utilities.\27\
Section 805(a)(2) of the Clearing Supervision Act \28\ also authorizes
the Commission to prescribe risk management standards for the payment,
clearing and settlement activities of designated clearing entities,
like OCC, for which the Commission is the supervisory agency. Section
805(b) of the Clearing Supervision Act \29\ states that the objectives
and principles for risk management standards prescribed under Section
805(a) shall be to:
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\27\ 12 U.S.C. 5461(b).
\28\ 12 U.S.C. 5464(a)(2).
\29\ 12 U.S.C. 5464(b).
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<bullet> promote robust risk management;
<bullet> promote safety and soundness;
<bullet> reduce systemic risks; and
<bullet> support the stability of the broader financial system.
The Commission has adopted risk management standards under Section
805(a)(2) of the Clearing Supervision Act and the Exchange Act in
furtherance of these objectives and principles.\30\ Rule 17Ad-22
requires registered clearing agencies, like OCC, to establish,
implement, maintain, and enforce written policies and procedures that
are reasonably designed to meet certain minimum requirements for their
operations and risk management practices on an ongoing basis.\31\
Therefore, the Commission has stated \32\ that it believes it is
appropriate to review changes proposed in advance notices against Rule
17Ad-22 and the objectives and principles of these risk management
standards as described in Section 805(b) of the Clearing Supervision
Act.\33\
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\30\ 17 CFR 240.17ad-22. See Exchange Act Release Nos. 68080
(Oct. 22, 2012), 77 FR 66220 (Nov. 2, 2012) (S7-08-11) (``Clearing
Agency Standards''); 78961 (Sept. 28, 2016), 81 FR 70786 (Oct. 13,
2016) (S7-03-14) (``Standards for Covered Clearing Agencies'').
\31\ 17 CFR 240.17ad-22.
\32\ See, e.g., Exchange Act Release No. 86182 (June 24, 2019),
84 FR 31128, 31129 (June 28, 2019) (SR-OCC-2019-803).
\33\ 12 U.S.C. 5464(b).
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OCC believes that the proposed changes are consistent with Section
[[Page 10737]]
805(b)(1) of the Clearing Supervision Act \34\ because the proposed
modified terms of the MRA under the Bank Repo Facility would provide
OCC with access to an additional source of committed liquidity and
provide a new funding option within its risk management toolbox to
manage financial obligations more efficiently and effectively. The Bank
Repo Facility, as described above, is structured to mitigate the risks
that arise in connection with this committed liquidity facility by
allowing OCC to move forward with the Bank Repo Facility while managing
the related risks by granting the buyer a limited rehypothecation
right. In this way, the proposed changes are designed to promote robust
risk management; promote safety and soundness; reduce systemic risks;
and support the stability of the broader financial system.
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\34\ 12 U.S.C. 5464(b)(1).
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Rule 17Ad-22(e)(7)(i) under the Exchange Act requires that OCC
establish, implement, maintain and enforce written policies and
procedures reasonably designed to maintain sufficient liquid resources
at the minimum in all relevant currencies to effect same-day and, where
appropriate, intraday and multiday settlement of payment obligations
with a high degree of confidence under a wide range of foreseeable
stress scenarios that includes, but is not limited to, the default of
the participant family that would generate the largest aggregate
payment obligation for the covered clearing agency in extreme but
plausible market conditions.\35\ As described above, the proposed
change would allow OCC to implement the Bank Repo Facility, which would
in turn help provide OCC with a readily available liquidity resource
that would enable it to continue to meet its obligations in a timely
manner and address OCC's liquidity demands under stressed or volatile
market conditions. Accordingly, OCC believes that the proposal is
consistent with Rule 17Ad-22(e)(7)(i).\36\
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\35\ 17 CFR 240.17ad-22(e)(7)(i).
\36\ Id.
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Rule 17Ad-22(e)(7)(ii) under the Exchange Act requires OCC to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to hold qualifying liquid resources
sufficient to satisfy the minimum liquidity resource requirement under
Rule 17Ad-22(e)(7)(i) in the currency for which OCC has payment
obligations owed to Clearing Members.\37\ Rule 17Ad-22(a)(14) of the
Act defines ``qualifying liquid resources'' to include, among other
things, lines of credit without material adverse change provisions,
which are readily available and convertible into cash.\38\ As described
above the proposed change to the Bank Repo Facility would provide OCC
with an additional committed liquidity resource, which would help
ensure OCC has sufficient, readily available qualifying liquid
resources to meet settlement obligations and its minimum liquidity
resource requirements. Accordingly, OCC believes that the proposal is
consistent with Rule 17Ad-22(e)(7)(ii).\39\
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\37\ 17 CFR 240.17ad-22(e)(7)(ii).
\38\ 17 CFR 240.17ad-22(a) ``Qualifying liquid resources''.
\39\ 17 CFR 240.17ad-22(e)(7)(ii).
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Rule 17Ad-22(e)(21) under the Exchange Act requires OCC to
establish, implement, maintain and enforce written policies and
procedures reasonably designed to be efficient and effective in meeting
the requirements of its participants and the markets it serves and
regularly review the efficiency and effectiveness of, among other
things, its operating structure, including risk management policies,
procedures and systems.\40\ OCC has, through its regular review of its
liquidity funding arrangements and negotiations with the bank
counterparty, identified an impediment to the implementation of an
additional liquidity source that would further diversify OCC's
liquidity funding resources. The current prohibition on rehypothecation
has prevented execution of the facility on commercially acceptable
terms. Removing this impediment would allow OCC to implement the
facility for a greater amount and for a lower cost. Because OCC
operates under a financial market utility model and principally funds
its operations through the collection of clearing fees, such costs are
ultimately borne by Clearing Members and, in turn, market participants.
Establishing access to a facility as part of OCC's overall liquidity
plan and diverse set of liquidity sources that is comparable or lower
in cost to OCC's other liquidity facilities would help OCC manage its
operations in an efficient and effective manner. Accordingly, OCC
believes that the changes to the Bank Repo Facility are reasonably
designed to manage OCC's liquidity risk in an efficient and effective
manner, consistent with Rule 17Ad-22(e)(21)(ii).\41\
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\40\ 17 CFR 17ad-22(e)(21)(ii).
\41\ Id.
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For the foregoing reasons, OCC believes that the proposed changes
are consistent with Section 805(b)(1) of the Clearing Supervision Act
\42\ and Rules 17Ad-22(e)(7) and (e)(21) under the Exchange Act.\43\
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\42\ 12 U.S.C. 5464(b)(1).
\43\ 17 CFR 240.17ad-22(e)(7), (21).
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III. Date of Effectiveness of the Advance Notice and Timing for
Commission Action
The proposed change may be implemented if the Commission does not
object to the proposed change within 60 days of the later of (i) the
date that the proposed change was filed with the Commission or (ii) the
date that any additional information requested by the Commission is
received. The clearing agency shall not implement the proposed change
if the Commission has any objection to the proposed change.
The Commission may extend period for review by an additional 60
days if the proposed change raises novel or complex issues, subject to
the Commission or the Board of Governors of the Federal Reserve System
providing the clearing agency with prompt written notice of the
extension. A proposed change may be implemented in less than 60 days
from the date the advance notice is filed, or the date further
information requested by the Commission is received, if the Commission
notifies the clearing agency in writing that it does not object to the
proposed change and authorizes the clearing agency to implement the
proposed change on an earlier date, subject to any conditions imposed
by the Commission. The clearing agency shall post notice on its website
of proposed changes that are implemented.
The proposal shall not take effect until all regulatory actions
required with respect to the proposal are completed.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the advance
notice is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#e795928b82ca84888a8a82899394a7948284c9808891"><span class="__cf_email__" data-cfemail="2a585f464f07494547474f445e596a594f49044d455c">[email protected]</span></a>. Please include
File Number SR-OCC-2025-801 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission,
[[Page 10738]]
100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to File Number SR-OCC-2025-801. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the submission, all subsequent amendments, all written
statements with respect to the advance notice that are filed with the
Commission, and all written communications relating to the advance
notice between the Commission and any person, other than those that may
be withheld from the public in accordance with the provisions of 5
U.S.C. 552, will be available for website viewing and printing in the
Commission's Public Reference Room, 100 F Street NE, Washington, DC
20549, on official business days between the hours of 10:00 a.m. and
3:00 p.m. Copies of such filing also will be available for inspection
and copying at the principal office of OCC and on OCC's website at
<a href="https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules">https://www.theocc.com/Company-Information/Documents-and-Archives/By-Laws-and-Rules</a>.
Do not include personal identifiable information in submissions;
you should submit only information that you wish to make available
publicly. We may redact in part or withhold entirely from publication
submitted material that is obscene or subject to copyright protection.
All submissions should refer to File Number SR-OCC-2025-801 and should
be submitted on or before March 19, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\44\
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\44\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-03071 Filed 2-25-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 26, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.