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Self-Regulatory Organizations; The Options Clearing Corporation; Order Approving Proposed Rule Change by the Options Clearing Corporation To Establish a Commercial Paper Program
Plain English Summary
The Options Clearing Corporation (OCC) has introduced a new program that allows it to use government securities from defaulting members to engage in repurchase transactions with institutional investors, including insurance companies and pension funds. This change affects how OCC manages liquidity and ensures it can meet its regulatory obligations. Insurance agents should stay informed about this program as it may impact their investment strategies and partnerships with OCC.
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(referred to in the Notice as the non-bank liquidity facility) allows OCC to 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. Notice, 91 FR at 34703.
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Base Liquidity Resources are the amount of qualifying liquid resources, as defined in Rule 17ad-22(a) under the Exchange Act, OCC maintains at all times to satisfy its regulatory obligations arising from