OCC Receives No Objection Notice from SEC on Cloud Infrastructure Proposal

November 07, 2022

On October 20, 2022, the U.S. Securities and Exchange Commission (SEC) issued a ‘Notice of No Objection’ regarding OCC’s Advance Notice filing in connection with our Cloud infrastructure proposal. OCC is the first Systemically Important Financial Market Utility (SIFMU) to request regulatory approval to use the Cloud for our new clearing, risk management and data management applications launching in 2025.

“The SEC’s ‘Notice of No Objection’ represents the culmination of several years of collaborative work with our regulators and marks a critical milestone in our transformation,” said John P. Davidson, Chief Executive Officer. “With it, we can move forward with our plans to leverage the capabilities of a Cloud service provider while continuing to meet our regulatory requirements as a SIFMU. We appreciate that our regulators acknowledge the value and benefits of this important step.”

OCC filed the Advance Notice in October 2021, and the SEC published it for public comment soon after. 

CEO-Elect Andrej Bolkovic added, “Our planned Cloud implementation represents our commitment to innovation as the foundation for secure markets. Operating in the Cloud will enable Ovation, with its event-based and service-oriented architecture, to provide high-velocity clearing, settlement and risk management capabilities to our clearing members and market participants while preserving our secure and reliable operations when it launches in 2025.”

Use of the Cloud will provide Ovation with enhanced resiliency, security and scalability and will allow multiple environments in which to run our systems. Working with Amazon Web Services (AWS) gives us the ability to build the next generation of Cloud-enabled infrastructure and core applications for our exchange partners and the trading platforms that we serve.

“Together, OCC and AWS seek to change what’s possible in centralized clearing, offering members and market participants expanded capabilities with greater speed and the proven security, reliability, and resilience of the world’s leading cloud,” said Scott Mullins, general manager, Worldwide Financial Services Business Development at AWS. “We’re proud to work with OCC as it strives to accelerate transformation in how new and innovative functionality enhancements are delivered to its members.” 

As the sole provider of clearance and settlement for U.S. listed options, it is vital that our critical systems remain continuously available to the markets that we serve. For this reason, OCC also plans to utilize an on-premises data center in the event of a widespread Cloud service disruption.

As we move forward with our transformation, we are also planning significant investments to upgrade our hardware and software to ensure the continued resiliency of our current system, ENCORE. With these enhancements, we’re confident OCC will deliver our services safely and reliably through Ovation’s launch. For more information, visit OCC’s Transformation page

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