OCC securities lending activity sees increase
02 March 2018 Chicago
Image: Shutterstock
OCC has calculated that its securities lending activity was up 39 percent in new loans from February last year with 224,374 transactions last month.
It also showed that year-to-date stock loan activity is up 34 percent from 2017 with 457,856 new loan transactions in 2018. The average daily loan value cleared by OCC in February was $175.9 billion.
Looking at its business as a whole, total cleared contract volume in February was
477,587,355 contracts, up 43 percent from the previous year volume of 333,411,251
contracts.
It revealed that its year-to-date average daily cleared contract volume is up 39 percent from 2017 with 23,934,996 contracts.
Overall exchange-listed options volume reached 464,869,500 contracts in February, up 44
percent from February last year.
Equity options volume reached a total of 398,009,570 contracts, a 40 percent increase from February 2017. This includes cleared exchange-traded funds options volume of 198,333,703 contracts last month, a 15 percent increase over February 2017 cleared volume of 173,248,941 contracts. Index options volume was up 70 percent with 66,859,930 contracts in February.
Year-to-date average daily equity options volume is up 37 percent with 20,241,493
contracts in 2018, while year-to-date average daily index options volume is up 58 percent
with 3,077,864 contracts this year.
OCC cleared futures volume in February was 12,717,855 contracts, a 27 percent increase from February last year. OCC’s year-to-date average daily cleared futures volume is up 22 percent from 2017 with 615,639 contracts.
OCC has also declared an $80 million refund to clearing members under its approved capital plan, the second-largest clearing member refund it has made since the inception of its capital plan.
According to OCC, its capital plan as a vital component of its goal of providing world-class service to market participants and helping to ensure the resiliency of a Systemically Important Financial Market Utility.
Last year’s regular refund is approximately $53 million. OCC showed a special refund of 2017 clearing fees of approximately $25.7 million, representing the excess of 2017 pre-tax net income over OCC’s target revenue based on achievement of a 25 percent business risk buffer as required under the capital plan.
Payment of the total 2017 refund will be made as one payment in the Q3 2018.
Craig Donohue, OCC executive chairman and CEO, said: “Our actions taken under the approved capital plan are consistent with the operative fee and refund policies approved by the SEC and align with regulatory expectations.”
Donohue added: “It will also ensure OCC has the amount of capital needed to comply with existing and proposed capital requirements.”
It also showed that year-to-date stock loan activity is up 34 percent from 2017 with 457,856 new loan transactions in 2018. The average daily loan value cleared by OCC in February was $175.9 billion.
Looking at its business as a whole, total cleared contract volume in February was
477,587,355 contracts, up 43 percent from the previous year volume of 333,411,251
contracts.
It revealed that its year-to-date average daily cleared contract volume is up 39 percent from 2017 with 23,934,996 contracts.
Overall exchange-listed options volume reached 464,869,500 contracts in February, up 44
percent from February last year.
Equity options volume reached a total of 398,009,570 contracts, a 40 percent increase from February 2017. This includes cleared exchange-traded funds options volume of 198,333,703 contracts last month, a 15 percent increase over February 2017 cleared volume of 173,248,941 contracts. Index options volume was up 70 percent with 66,859,930 contracts in February.
Year-to-date average daily equity options volume is up 37 percent with 20,241,493
contracts in 2018, while year-to-date average daily index options volume is up 58 percent
with 3,077,864 contracts this year.
OCC cleared futures volume in February was 12,717,855 contracts, a 27 percent increase from February last year. OCC’s year-to-date average daily cleared futures volume is up 22 percent from 2017 with 615,639 contracts.
OCC has also declared an $80 million refund to clearing members under its approved capital plan, the second-largest clearing member refund it has made since the inception of its capital plan.
According to OCC, its capital plan as a vital component of its goal of providing world-class service to market participants and helping to ensure the resiliency of a Systemically Important Financial Market Utility.
Last year’s regular refund is approximately $53 million. OCC showed a special refund of 2017 clearing fees of approximately $25.7 million, representing the excess of 2017 pre-tax net income over OCC’s target revenue based on achievement of a 25 percent business risk buffer as required under the capital plan.
Payment of the total 2017 refund will be made as one payment in the Q3 2018.
Craig Donohue, OCC executive chairman and CEO, said: “Our actions taken under the approved capital plan are consistent with the operative fee and refund policies approved by the SEC and align with regulatory expectations.”
Donohue added: “It will also ensure OCC has the amount of capital needed to comply with existing and proposed capital requirements.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
