OCC Comment on CFTC Proposed Rule 89 FR 286: Protection of Clearing Member Funds Held by Derivatives Clearing Organizations

The Options Clearing Corporation (“OCC") appreciates the opportunity to submit these comments to the Commodity Futures Trading Commission (“CFTC” or “Commission”) on the above-referenced proposal (“Proposal” or “Proposed Rules”) under the Commodity Exchange Act (“CEA”). In relevant part, the Proposal would require, among other things, (i) that funds of the clearing members of a derivatives clearing organization (“DCO”) be segregated from the DCO’s own funds and held in a depository that acknowledges, in writing, that the funds belong to clearing members, not the DCO; (ii) that clearing member funds only be invested pursuant to certain defined parameters (specifically, the restriction in existing CFTC Regulation § 1.25); and (iii) that DCOs conduct a daily calculation and reconciliation of the amount of funds owed to customers and clearing members and the amount actually held for customers and clearing members.

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