OCC Announces Its Designation as a Systemically Important Financial Market Utility
CHICAGO (July 19, 2012) - On July 18 OCC received notice it has been designated as a systemically important Financial Market Utility (SIFMU) by the Financial Stability Oversight Council (FSOC) as part of the Dodd-Frank financial overhaul law.
FSOC designation as a systemically important financial market utility requires compliance with prescribed risk management standards and heightened oversight by US financial regulators, the details of which remain in progress. The Dodd-Frank and related FSOC provisions are designed to promote robust risk management and safety and soundness, reduce systemic risk, and support the stability of the broader financial system. OCC expected this designation, which reflects its critical role within the U.S. financial markets infrastructure.
"We applaud and embrace this strengthening of the regulatory framework applicable to our clearing business," said Michael Cahill, OCC's President and Chief Operating Officer. He added, "OCC's commitment to meeting the highest standards of risk management ensures the stability and security of the markets it serves."
OCC is the world's largest equity derivatives clearing organization. Founded in 1973, OCC operates under the jurisdiction of both the Securities and Exchange Commission (SEC) as a Registered Clearing Agency and the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organization. OCC now provides central counterparty (CCP) clearing and settlement services to 16 exchanges and trading platforms for options, financial and commodity futures, security futures and securities lending transactions. More information about OCC is available at www.theocc.com.