User acknowledges that it has reviewed the User Agreement and the Privacy Policy governing this site, and that continued use constitutes acceptance of the terms and conditions stated therein.

Blog Category: Risk Management

October 30, 2019
How OCC Helps Clearing Firms Improve Operational and Collateral Efficiency
By Matt Wolfe, OCC Vice President of Business Development
As the world's largest equity derivatives clearinghouse, OCC has an innovative methodology for measuring risk and valuing collateral. It allows our clearing member firms the opportunity to post, collectively, billions of dollars less in collateral every day.
Categories: Clearing Services, Market Efficiencies, Risk Management, Securities Lending/Stock Loan

October 24, 2019
Enhancing Traditional Approaches to Manage Cyber Security Risks
By Mark Morrison, OCC Chief Information Security Officer
At the July World Federation of Exchanges Technology Summit in Umea, Sweden, there was a lively cyber security panel discussion covering the challenges associated with implementing new and emerging technologies in the financial sector. The panel explored how the implementation of technologies like Blockchain, Distributed Ledger, Artificial Intelligence, Machine Learning, and Public Cloud requires financial institutions to enhance traditional approaches for protecting information systems and data to address the operational, regulatory, and security risks introduced.
Categories: Blockchain, Business Continuity, Cyber Security, Operational Risk Management, Risk Management

August 20, 2019
Recent Strides in OCC's Transformation
By Craig Donohue, Executive Chairman, John Davidson, OCC Chief Executive Officer, Scot Warren, Chief Operating Officer
There have been significant transformation efforts undertaken at OCC by our colleagues during the last several years. OCC's transformation is a broad, multi-year undertaking covering every aspect of our organization: our financial resiliency, our people, our processes, and our technology.
Categories: Company Updates, Industry Education, Risk Management, Talent Management

August 6, 2019
How OCC Uses Low Code to Transform its Business Processes
By Adeel Javed, OCC Manager of Enterprise Technology Solutions
OCC clears approximately 19 million options and futures contracts a day. As you might imagine, this involves a lot of moving parts; heightened regulatory expectations in OCC's role as a Systemically Important Financial Market Utility require the need for accuracy. We are always looking for ways to improve our processes and strengthen our resiliency. One solution we recently identified is further pushing the bounds of automation, using two low-code tools.
Categories: Compliance, Market Efficiencies, Risk Management

March 25, 2019
What Does the Future Hold for Securities Lending?
By Matt Wolfe, OCC Vice President of Business Development
While strong relationships will always be important in the securities lending marketplace, there is a growing emphasis on data collection. Decisions are being influenced by data analytics. In my view, the future of securities lending will be data-driven and the leaders will be those that make the most effective use of data.
Categories: Securities Lending/Stock Loan, Risk Management

February 27, 2019
Technology is the Foundation of Efficient and Effective Capital Markets
By John Davidson
The U.S. has the world's deepest and most liquid capital markets in part because it has the best and most innovative technology from a plethora of highly competitive users and providers. Within the market infrastructure industry, I see technology as an enabler of efficient and effective capital markets.
Categories: Clearing Services, Cyber Security, Market Efficiencies, Regulation, Risk Management

January 9, 2019
The Essential Components of The Risk Management Framework for CCPs
By Dale Michaels
Central counterparties (CCPs) like OCC have performed extraordinarily well during many stressful periods, including the financial crisis of 2008. This is due to the many clearinghouse innovations that have been put in place, including mark-to-market settlements, initial margin models, and default management processes.
Categories: Clearing Services, Regulation, Risk Management

January 2, 2019
OCC Continues to Fulfill its Role as a SIFMU
By John Davidson
Throughout 2018, OCC operated in a robust and resilient manner, clearing over 20 million contracts a day for our highest ever annual cleared volume, while providing the U.S. equity options and futures markets with unparalleled financial integrity.
Categories: Clearing Services, Company Updates, Compliance, Market Efficiencies, Risk Management

November 7, 2018
Why a SIFMU Must Always Manage Liquidity Risk
By John Fennell
John Fennell, OCC's Executive Vice President and Chief Risk Officer, explains how OCC has enhanced its resiliency to support U.S. options market participants after the 2008 financial crisis.
Categories: Clearing Services, Compliance, Liquidity/CalPERS, Operational Risk Management, Risk Management

October 29, 2018
The Importance of a Systemically Important Financial Market Utility
By John Fennell
John Fennell, OCC's Executive Vice President and Chief Risk Officer, explains OCC's role as a central counterparty within the current regulatory environment.
Categories: Clearing Services, Compliance, Regulation, Risk Management

October 11, 2018
The Complex Realities of a Cybersecurity Program
By Mark Morrison
Mark Morrison, OCC's Chief Information Security Officer, shares some significant cybersecurity issues that don't always make it into today's headlines.
Categories: Business Continuity, Compliance, Cyber Security, Risk Management

August 29, 2018
OCC Enhances Resilience with Regulatory Approval of Recovery and Wind Down and Associated Recovery Tools
By John Davidson
OCC has received approval from the U.S. Securities and Exchange Commission of the company's proposed recovery tools and proposed recovery and orderly wind-down plan.
Categories: Clearing Services, Company Updates, Compliance, Regulation, Risk Management

August 15, 2018
Get the Facts About Covered Calls
By the team at the Options Industry Council
The covered call is one of most common option strategies there is, but it isn't going to be right for every situation.
Categories: Industry Education, OIC, Risk Management

August 6, 2018
OCC Clears the Path to Greater Capital Efficiencies for Clearing Firms in U. S. Exchange-Listed Options Markets
By Craig Donohue
Craig Donohue, OCC Executive Chairman and Chief Executive Officer, discusses the benefits of OCC's new Financial Safeguard Framework (FSF), which was approved by the SEC. Implementation begins September 4.
Categories: Clearing Services, Company Updates, Compliance, Market Efficiencies, Risk Management

April 26, 2018
A Decade After the Financial Crisis, These Lessons Can't Be Forgotten
By John Davidson
John Davidson, OCC President and Chief Operating Officer, shares six lessons from the financial crisis which are relevant for central counterparties, such as OCC, as well as other types of financial intermediaries.
Categories: Company Updates, Regulation, Risk Management

October 5, 2017
Q&A with Mark Morrison, OCC's Chief Security Officer
By Mark Morrison
Mark Morrison, OCC Chief Security Officer (CSO), shares his insights on cyber security and the exchange-listed options industry, as well as his responsibilities at the world's largest equity derivatives clearing organization.
Categories: Company Updates, Cyber Security, Risk Management

March 2, 2017
Renovating OCC's Risk Culture
by John Fennell
John Fennell, OCC EVP and Chief Risk Officer, discusses the proactive steps to renovate the OCC's risk culture and install a culture based on "identify, escalate, and then debate."
Categories: Operational Risk Management, Risk Management

December 6, 2016
Some Thoughts by OCC on Risk Management
By John Fennell
John Fennell, OCC Chief Risk Officer, shares his insights into how OCC proactively manages its internal and external risks and best practice models that promote an enhanced risk culture within the organization.
Categories: Business Continuity, Compliance, Operational Risk Management, Risk Management

October 25, 2016
Why A Resilient Risk Management and Internal Control Infrastructure Matters
By Adi Agrawal
Adi Agrawal, OCC Senior Vice President and Chief Audit Executive, explains how as a Systemically Important Financial Market Utility (SIFMU) and leader in the exchange-listed options industry, OCC understands the importance of a strong internal control infrastructure to enhance resiliency and provide sound risk management capabilities for market participants.
Categories: Business Continuity, Operational Risk Management, Risk Management

October 4, 2016
The importance of business continuity in times of operational risk
By John Fennell
John Fennell, OCC Executive Vice President and Chief Risk Officer, discusses the proactive steps OCC takes to ensure business continuity in times of operational risk to provide uninterrupted service to its market participants during unexpected market events.
Categories: Compliance, Operational Risk Management, Risk Management

August 11, 2016
OCC Weighs In On Leverage Ratio and Impact on Listed Options Industry
By John Fennell
John Fennell, OCC Executive Vice President of Financial Risk Management, explains the recent comment letter submitted by OCC and 30 other exchanges and trading firms regarding the leverage ratio framework as proposed by the Basel Committee on Banking Supervision (BCBS).
Categories: Comment Letters, Risk Management

August 4, 2016
How OCC Manages Third-Party Risk
By Kirstin Wells
Kirstin Wells, OCC Vice President of Enterprise Risk Management, discusses the importance of risk management for a Systemically Important Financial Market Utility (SIFMU) and how OCC manages its third-party risks.
Categories: Cyber Security, Operational Risk Management, Risk Management

July 11, 2016
Bringing Innovative Ideas to the Market
By John Fennell
John Fennell, OCC Executive Vice President of Financial Risk Management, discusses OCC's credit facility with CalPERS, the largest U.S. pension fund, as a means to diversify the organization's liquidity sources to reduce risk and improve overall resiliency.
Categories: Liquidity/CalPERS, Risk Management

June 21, 2016
Strengthening Financial Market Resiliency through Technology
By Luke Moranda
Luke Moranda, OCC Senior Vice President and Chief Information Officer, explains OCC's focus on improved resiliency and meeting heightened regulatory standards through technology and innovation.
Categories: Compliance, Cyber Security, Risk Management