OCC Statement Regarding The S&P Rating Change On OCC Counterparty Risk
CHICAGO (August 8, 2011) Standard & Poor's has continued its lockstep approach of linking the ratings of a number of financial institutions and instruments to its rating of U.S. sovereign debt. Following the downgrade of U.S. sovereign debt to AA+ on Friday, S&P has now downgraded OCC, The Depository Trust Co. (DTC), National Securities Clearing Corp. (NSCC), and Fixed Income Clearing Corp. (FICC) to AA+ today.
"This rating change will have no negative impact on OCC's operations or our ability to meet our obligations to OCC's clearing members," said Wayne P. Luthringshausen, OCC Chairman and CEO. As S&P noted in its release, "the downgrades of these four financial institutions are not the result of any company-specific event. We have not changed our view of the fundamental soundness of their depository or clearing operations. Rather, the downgrades incorporate potential incremental shifts in the macroeconomic environment and the long-term stability of the U.S. capital markets as a consequence of the decline in the creditworthiness of the federal government."
OCC continues to provide solid risk management to ensure the security and stability of the markets we serve.
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 15 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.