OCC, an organization that clears and settles all trades on U.S. options exchanges, has been designated by U.S. regulators as systemically important to the financial system, according to spokesman Jim Binder.
Chicago-based OCC, formerly known as the Options Clearing Corp., joins clearinghouses owned by CME Group Inc. (CME), Intercontinental Exchange Inc. and the Depository Trust and Clearing Corp. in receiving the designation from the Financial Stability Oversight Council. The label moves the clearinghouses closer to heightened supervision under the Dodd-Frank Act. The designation is subject to appeal and may be completed “as early as this summer,” according to Anthony Coley, a U.S. Treasury Department spokesman.
The Clearing House Payments Co. LLC, which operates a cross-border and domestic wire-transfer system, also received a letter of designation this week.