OCC to refund $156 million to clearing member firms
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OCC to refund $156 million to clearing member firms 18 December 2020US Reporter: Natalie Turner
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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.
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