📈Margin Add-On Charge Proposed by Options Clearing Corporation
Self-Regulatory Organizations; Options Clearing Corporation; Notice of Designation of Longer Period for Commission Action on Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change, as Modified by Partial Amendment No. 1 and Amendments Nos. 2 and 3, by The Options Clearing Corporation To Establish a Margin Add-On Charge That Would Be Applied to All Clearing Member Accounts To Help Mitigate the Risks Arising From Intraday and Overnight Trading Activity
Summary
The Securities and Exchange Commission issued a notice regarding a proposed rule change by the Options Clearing Corporation to establish a margin add-on charge. This measure aims to mitigate risks associated with intraday and overnight trading, particularly focusing on the trading of short-dated options. The proposal includes various amendments addressing industry feedback and regulatory standards.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The content outlines a proposed rule change by the Options Clearing Corporation that implements a margin add-on charge for Clearing Member accounts to mitigate risks associated with trading, particularly impacting businesses involved in intraday and overnight trading. This introduces compliance requirements for financial entities and could affect trading strategies, thus having financial ramifications.