03 January 2018
Reporter: Jenna Lomax

OCC securities lending activity increases again

OCC's securities lending volume through its central counterparty (CCP) was up 16 percent in new loans in December, compared to the same period last year.

The equity derivative clearinghouse oversaw 206,338 securities lending transactions last month.

Year-to-date, securities lending activity was up by 22 percent, with 2.33 million new loan transactions.

The average daily loan cleared by OCC was valued at $155.1 billion last month.

OCC’s cleared futures volume was also up 32 percent from 2016, adding up to 10.4 million contracts over the month.

OCC ended the year with 10 million cleared futures contracts in December, up 5 percent from December 2016.

Year-to-date, OCC’s average daily cleared futures volume was up 33 percent in 2017 with 549,919 contracts.

OCC has also be given reaffirmation of its AA+/stable rating by Standard & Poor’s (S&P) as of 28 December 2017.

In its report, S&P said OCC’s outlook is stable because it expects OCC “to implement the new financial safeguards in 2018, provided it receives regulatory approval.”

S&P also commented that OCC “enjoys large economies of scale and has ample capacity to absorb up to two-and-a-half times the largest historical trading volumes per day with the current OCC systems.”

“As a processor of over 17.5 million contracts daily, we consider OCC's operational risk to be high. The company must meet the demands of its members and the trading community at large, which requires exceptional technology and back-office operations.”

Craig Donohue, OCC executive chairman and CEO, said: “S&P’s decision is a powerful recognition of our efforts to strengthen OCC’s financial safeguards framework and to promote stability and market integrity through effective and efficient clearance, settlement and risk management services.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
IHS Markit names Stuart Cornock as associate sales director
22 January 2018 | London | Reporter: Zsuzsa Szabo
Cornock has moved from Clearstream to IHS Markit
New York Fed confirms repo rate complaints
22 January 2018 | New York | Reporter: Zsuzsa Szabo
An audit of the Federal Reserve Bank of New York uncovered that the effective federal funds rate and overnight bank funding rate are in compliance with principles for financial benchmarks
James Burron has left AIMA
22 January 2018 | Toronto | Reporter: Jenna Lomax
James Burron has left the Alternative Investment Management Association
Hong Kong securities and derivatives markets break records in 2017
19 January 2018 | Hong Kong | Reporter: Jenna Lomax
Market capitalisation of Hong Kong’s securities market reached over $33 billion, while in the derivatives market total options trading reached over 137 thousand contracts
ESMA updates MiFID II transparency calculations
19 January 2018 | Paris | Reporter: Zsuzsa Szabo
ESMA has revised its transitional transparency calculations for equity and bond instruments reported under MiFID II
S&P reaffirms OCC’s AA+ rating
19 January 2018 | Chicago | Reporter: Jenna Lomax
S&P has reaffirmed OCC’s financial strength rating of “AA+/stable”
Clearstream to include Kazakh government bonds
19 January 2018 | Astana | Reporter: Zsuzsa Szabo
Kazakhstan treasury bonds are to be available through Clearstream