💰OCC Proposed Rule Changes for Liquidation Risk Management and GSP
Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Proposed Rule Change by The Options Clearing Corporation Concerning Certain Revisions in Connection With Proposed Modifications to the Manner in Which OCC Accounts for the Guaranty Substitution Payment in OCC's Liquidity Risk Management Processes
Summary
The OCC has proposed revisions to its liquidity risk management framework, specifically regarding the accounting processes for Guaranty Substitution Payments (GSP). These changes aim to improve accuracy in financial assessments related to defaulting Clearing Members, ensuring that the OCC better manages its liquidity demands and reduces unnecessary resource collection from its members.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The content outlines significant changes to the OCC's liquidity risk management processes. By adjusting how Guaranty Substitution Payments (GSPs) are accounted for, it affects the financial obligations and resource allocations for Clearing Members. These adaptations aim to enhance cash management and reduce over-collection of funds, implying direct financial management implications for related businesses.