9 Apr 2025
⚖️OCC Introduces Intraday Risk Charge for Margin Requirements
Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of 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 SEC has approved the OCC's proposed rule change to implement an Intraday Risk Charge, aimed at addressing the risks from intraday and overnight trading activities. The new margin add-on charge will apply to all Clearing Member accounts, reflecting increased exposure from short-dated options trading and ensuring adequate collateral management for potential defaults.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed Intraday Risk Charge affects margin requirements for Clearing Members, increasing financial burdens and compliance mandates for market participants. The implementation of these charges aims to address risks associated with intraday trading activities, which may alter trading strategies and operational aspects for businesses involved in options trading.