OCC, the world's largest equity derivatives clearing organization, and a leading advocate for clearing equivalency on behalf of the U.S. listed options industry, today commended the European Commission for its decision to extend the deadline for CCPs to be deemed qualifying central counterparties until December 15, 2016.
OCC Executive Chairman Craig Donohue said, "We commend the European Commission for its decision to extend the transitional period deadline for CCPs such as OCC to be recognized as QCCPs. This announcement provides some important breathing room for the listed options industry. We look forward to continuing to work with the EC, the European Securities and Markets Authority, and the SEC as they work to come to an agreement on a common approach for the regulation of cross-border QCCPs."
Donohue added, "Recognition of U.S. CCPs subject to the SEC's jurisdiction is important to OCC and market participants for several reasons, foremost among them that it would allow EU banks' and EU bank affiliates' exposure to those CCPs to be subject to a lower risk weight in calculating their regulatory capital."
OCC has said that its EU-affiliate clearing members' risk weighted asset exposures to OCC would increase to over $75 billion from $924 million, requiring them to maintain additional capital of approximately $5.25 billion.