OCC confirms repurchase facility deal
11 March 2015 Boston
Image: Shutterstock
The Options Clearing Corporation (OCC) and eSecLending have collaborated with CalPERS to develop a product to help OCC diversify and increase its committed liquidity resources while offering a risk-adjusted return for CalPERS.
The fully collateralised facility offers OCC a source of access to liquidity while maintaining CalPERS鈥檚 conservative risk profile.
It also increases OCC's overall liquidity resources from $2 billion to $3 billion, while diversifying OCC's committed lenders.
鈥淭he diversification of OCC's committed lenders to include CalPERS in addition to our existing base of banks and broker-dealers ensures that sufficient capacity is maintained at all times, which is critical to central counterparties like OCC,鈥� said Craig Donohue, OCC executive chairman.
鈥淓xpanding our liquidity resource pool to draw on non-bank facilities allows OCC to meet payment obligations to clearing members in a timely way, thus promoting the uninterrupted flow of financial markets.鈥�
Administrative agent for the facility, eSecLending, will support CalPERS with all aspects of the transaction.
鈥淭he collateralised facility offers CalPERS an attractive yield within a tightly controlled operating environment and addresses OCC鈥檚 desire to establish right way risk in their funding sources,鈥� said Chris Poikonen, executive vice president at eSecLending.
The fully collateralised facility offers OCC a source of access to liquidity while maintaining CalPERS鈥檚 conservative risk profile.
It also increases OCC's overall liquidity resources from $2 billion to $3 billion, while diversifying OCC's committed lenders.
鈥淭he diversification of OCC's committed lenders to include CalPERS in addition to our existing base of banks and broker-dealers ensures that sufficient capacity is maintained at all times, which is critical to central counterparties like OCC,鈥� said Craig Donohue, OCC executive chairman.
鈥淓xpanding our liquidity resource pool to draw on non-bank facilities allows OCC to meet payment obligations to clearing members in a timely way, thus promoting the uninterrupted flow of financial markets.鈥�
Administrative agent for the facility, eSecLending, will support CalPERS with all aspects of the transaction.
鈥淭he collateralised facility offers CalPERS an attractive yield within a tightly controlled operating environment and addresses OCC鈥檚 desire to establish right way risk in their funding sources,鈥� said Chris Poikonen, executive vice president at eSecLending.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
