Explore
Close
Your acceptance of all cookies will permit robust site functionality. If you don't allow cookies, some features and functionality of OCC's site may not operate as expected. If you do not choose either cookie setting for our site, or if you close this window, this message will continue to display on each page you visit. Cookie settings can be controlled in your Internet browser to automatically reject some forms of cookies. For more details on cookies this site uses, see our OCC Site Cookies page. In addition to using cookies, we retain other information, including your Internet Protocol (IP) address, for the purposes listed in the Privacy Policy..

OCC Declares Clearing Member Refund and Dividend for 2015 and Reduction of Fees under Approved Capital Plan

  • Special Refund for 2015 Also Declared
December 17, 2015
Chicago -

OCC, the world's largest equity derivatives clearing organization, today announced the declaration of a refund, dividend, and fee reduction under its approved capital plan.1 The refund of approximately $39 million2 to clearing members and the dividend of approximately $17 million3 to Stockholder Exchanges will be paid in Q1 2016 following issuance of OCC's financial statements. The new fee schedule, included below, will commence on March 1, 2016, and will result in a reduction in the average clearing fee of approximately 19% from current levels.

OCC also announced a special refund of 2015 clearing fees of approximately $72 million. The special refund represents the excess of 2015 pre-tax net income over OCC's target revenue based on achievement of a 25% business risk buffer. Payment of the 2015 special refund, and the previously declared 2014 refund of $33.3 million, will be made as soon as practicable in 2016 upon further determination that the 2015 special refund and 2014 refund amounts will not cause OCC's capital to fall below its total equity capital resource requirement of $247 million.

The SEC has approved OCC's capital plan and more recently issued an order discontinuing the automatic stay that resulted from the filings of various petitions for review of the approval order. In doing so, the SEC noted that strengthening the capitalization of OCC is a compelling public interest and that the concerns raised by the petitioners did not justify continuation of the stay. "Our actions taken under the approved capital plan are consistent with the operative fee, refund, and dividend policies approved by the SEC and align with regulatory expectations under the approval order," said Craig Donohue, OCC Executive Chairman. He added, "It will also ensure OCC has the amount of capital needed to comply with existing and proposed capital requirements."

The following schedule of revised fees will be effective as of March 1, 2016.

SCHEDULE OF REVISED FEES

Tier
Current Fee   
  New Fee
1-500
$0.050/
contract
$0.041/
contract
501-1000
$0.040/
contract
$0.032/
contract
1001-2000
$0.030/
contract
$0.024/
contract
>2000
$55.00/
trade
$46.00/
trade

 

Market maker/specialist scratch and linkage fees per side will remain unchanged at $0.020.

Additionally, the board has approved a flat fee schedule that will be separately implemented following OCC's regulatory filing with the SEC. The flat fee schedule will provide greater simplicity and preserve the approximately 19% fee reduction described above.

1 For information about the approved capital plan, see https://www.theocc.com/about/newsroom/releases/2015/09_11.jsp.

2 Amounts for the 2015 refund, dividend, and special refund are based on 2015 projections and subject to change based on the completion of OCC's annual financial statements.

3 Pro-ration based on Stockholder Exchange funding commencing on March 3, 2015.

This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as an endorsement, recommendation or solicitation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of the disclosure document, Characteristics and Risks of Standardized Options. Individuals should not enter into option transactions until they have read and understood this document. To obtain copies, contact your broker, any exchange on which options are traded, or The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (investorservices@theocc.com).