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Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing of Advance Notice by The Options Clearing Corporation To Establish a Commercial Paper Program
Plain English Summary
The Options Clearing Corporation (OCC) has announced a new program that allows it to establish a Commercial Paper Program. This program will help OCC manage liquidity by using government securities from defaulting members or borrowed funds to engage in repurchase transactions with large institutional investors, like insurance companies and pension funds. This change is designed to reduce the risk of having too much exposure to any single participant. Insurance agents should stay informed about this program as it may impact their dealings with OCC and related financial transactions.
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and (B) a non-bank liquidity facility program, through which OCC may use Government securities deposited by the defaulting Clearing Member or borrowed from the Clearing Fund to enter into repurchase transactions with institutional investment counterparties, such as <span class="match">insurance</span> companies and pension funds, that do not increase the concentration of OCC's counterparty exposure to its participants
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(together with the syndicated bank credit facility, the “committed facilities”).
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Together,
the Clearing Fund Cash Requirement and committed