OCC to refund $156 million to clearing member firms
18 December 2020 US
Image: Birdland/adobe.stock.com
OCC, the equity derivatives clearing organisation, is refunding $156 million to clearing members due to its 鈥渞ecord volumes鈥� and 鈥渆xpense discipline鈥�.
The fees will be returned to members on 19 April 2021.
Earlier this year, OCC announced a reduction in clearing fees from five-and-a-half cents to four-and-a-half cents effective 1 September 2020.
The OCC intends to seek regulatory approval to amend its capital management policy with a persistent minimum amount of skin-in-the-game.
OCC CEO John Davidson says: 鈥淎s part of our ongoing efforts to strengthen OCC鈥檚 resiliency while also delivering operational excellence and efficiency, OCC鈥檚 board of directors approved this refund for our clearing member firms.鈥�
Scot Warren, chief operating officer at OCC, adds: 鈥淭he record volume we鈥檝e experienced in 2020, combined with the expense discipline we鈥檝e achieved, has put us in a position to continue to invest in our infrastructure and also refund fees to clearing members consistent with our capital management policy.鈥�
Elsewhere the OCC鈥檚 securities lending central counterparty activity for November increased by 14.4 percent year-on-year in new loans with 105,418 transactions last month.
According to the OCC, this marked the highest November ever and the second-highest month on record. It鈥檚 year-to-date daily average cleared contract volume through November was 29.3 million contracts, up 48.4 percent from November 2019.
The fees will be returned to members on 19 April 2021.
Earlier this year, OCC announced a reduction in clearing fees from five-and-a-half cents to four-and-a-half cents effective 1 September 2020.
The OCC intends to seek regulatory approval to amend its capital management policy with a persistent minimum amount of skin-in-the-game.
OCC CEO John Davidson says: 鈥淎s part of our ongoing efforts to strengthen OCC鈥檚 resiliency while also delivering operational excellence and efficiency, OCC鈥檚 board of directors approved this refund for our clearing member firms.鈥�
Scot Warren, chief operating officer at OCC, adds: 鈥淭he record volume we鈥檝e experienced in 2020, combined with the expense discipline we鈥檝e achieved, has put us in a position to continue to invest in our infrastructure and also refund fees to clearing members consistent with our capital management policy.鈥�
Elsewhere the OCC鈥檚 securities lending central counterparty activity for November increased by 14.4 percent year-on-year in new loans with 105,418 transactions last month.
According to the OCC, this marked the highest November ever and the second-highest month on record. It鈥檚 year-to-date daily average cleared contract volume through November was 29.3 million contracts, up 48.4 percent from November 2019.
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