The Options Clearing Corporation (OCC) has submitted a petition to the Commodity Futures Trading Commission to permit OCC to operate an internal non-proprietary cross-margining program available to market professionals 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 CFTC requires that cross-margined futures and securities positions that are cleared solely by OCC be cleared by the same clearing member. OCC is requesting a modification to permit internal non-proprietary cross-margining accounts 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.
The CFTC is requesting comments on this proposed change. The comment period will close on April 22.
OCC’s request can be found here.