4 Aug 2025
đź’°OCC's Stress Testing Methodology Policy Amendments Approved
Self-Regulatory Organizations; The Options Clearing Corporation; Order Granting Approval of Proposed Rule Change by The Options Clearing Corporation Concerning Amendments to OCC's Comprehensive Stress Testing & Clearing Fund Methodology, and Liquidity Risk Management Description (“Methodology Description”) and Clearing Fund Methodology Policy (Together With the Methodology Description, the “Risk Policies”) To Enhance Its Stress Testing Methodology
Summary
The Securities and Exchange Commission approved the Options Clearing Corporation's amendments to its Comprehensive Stress Testing and Clearing Fund Methodology. These changes enhance the organization's ability to manage credit and liquidity risks by adjusting scenario categorizations, streamlining methodologies, and improving calibration practices for risk assessment.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The regulatory change affects the Options Clearing Corporation's (OCC) stress testing methodology, which has direct implications for the liquidity and capital requirements of Clearing Members. This may influence their financial stability and collateral obligations, impacting business operations and risk management practices.