OCC Commends D.C. Circuit Court Ruling Regarding Capital Plan

February 24, 2016
Chicago -

OCC, the world's largest equity derivatives clearing organization, applauded the order by the U.S. Court of Appeals for the D.C. Circuit yesterday denying a motion intended to restrict OCC from continuing to implement its capital plan. The motion followed a de novo review and approval of the plan by the Securities and Exchange Commission earlier this month. The U.S. Court of Appeals ruling represents the latest in a series of decisions in favor of OCC's capital plan and against Susquehanna International Group, LLP, KCG Holdings, Inc., BATS Global Markets, Inc., BOX Options Exchange LLC, and Miami International Securities Exchange, LLC (Petitioners).1

"We are pleased that the D.C. Circuit Court has issued this ruling permitting OCC to continue to implement its capital plan," said Craig Donohue, OCC Executive Chairman. "The Court's action is consistent with every SEC decision regarding the capital plan since February 26, 2015 – amounting to nearly one full year's worth of unsuccessful challenges from the same group of Petitioners – and further demonstrates the compelling public interest that OCC's capital plan serves. Yesterday's decision also permits OCC to overcome the Petitioners' roadblocks to facilitating the refunds and dividends that our clearing members and stockholder exchanges are entitled to under the plan."

The final 2015 refund of $40.0 million, special refund of $69.4 million, and 2015 dividend of $19.7 million were approved by the OCC Board of Directors on February 19, 2016. As a result of the Court's ruling, OCC will proceed with the distributions under the capital plan. The 2014 refund of $33.3 million, the 2015 refund of $40 million, and the 2015 dividend of $19.7 million will be paid on February 24, 2016. The 2015 special refund of $69.4 million will be paid as soon as practicable in 2016 upon further determination that the amount will not cause OCC's capital to fall below its total equity capital resource requirement of $247 million.

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