OCC wants to expand cross-margaining program

Washington, DC – The Commodity Futures Trading Commission (Commission) is requesting public comment on a petition submitted by the Options Clearing Corporation (OCC) to amend a November 5, 2004 Order issued by the Commission under Section 4d of the Commodity Exchange Act. The Order permits OCC to operate an internal non-proprietary cross-margining program for market professional customers who trade futures products and securities products that are cleared by OCC in its capacity as a derivatives clearing organization and a securities clearing agency, respectively.

The program to which the 2004 Order relates requires that the cross-margined futures and securities positions be cleared by the same clearing member. OCC now seeks to expand its program to permit an internal non-proprietary cross-margining account to be maintained at OCC jointly by a pair of affiliated clearing members, each of which is dually registered as a futures commission merchant and a securities broker-dealer.

Comments regarding the request should be submitted on or before April 22, 2011.

Comments may be submitted electronically through the CFTC’s Comments Online process. All comments will be posted on the Commission’s website.

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