OCC continues to fulfil SIFMU role
04 January 2019 Chicago
Image: Shutterstock
OCC has continued to make progress to meet heightened expectations as a systemically important financial market utility (SIFMU), according to John Davidson, OCC president and COO, cited in a blog post.
In the blog post, Davidson noted that enhancing OCC’s resiliency is critical to their continued ability to reduce systemic risk, increase market transparency, and provide capital and collateral efficiencies for the users of the US options market.
He explained that last year, OCC cleared over 20 million contracts a day, the highest ever annual cleared volume.
Davidson commented: “We continued to transform our governance structure by adding and re-electing five financial services experts to our board of directors, and we enhanced our team by adding the capability to our enterprise risk management, security services, financial risk management, compliance and internal audit functions.”
“Following on the successful move of our Dallas colleagues in 2017, we moved our Chicago colleagues into brand new office space, providing them with an open and collaborative work environment and making OCC a more attractive destination for the best talent.”
He continued: “As we look ahead, OCC is working to modernise its technology infrastructure, in what will be the most important effort we will undertake to better serve market participants.”
“While the ENCORE technology clearing system has served OCC well for over two decades, change is required if we are to continue to meet our obligations as a SIFMU, become increasingly innovative and agile as an organisation, and grow as a business.”
He added: “During this modernisation effort, we will continue to invest in ENCORE and deliver effective and efficient clearance and settlement services in a manner that minimises any impact to our current operations.”
In the blog post, Davidson noted that enhancing OCC’s resiliency is critical to their continued ability to reduce systemic risk, increase market transparency, and provide capital and collateral efficiencies for the users of the US options market.
He explained that last year, OCC cleared over 20 million contracts a day, the highest ever annual cleared volume.
Davidson commented: “We continued to transform our governance structure by adding and re-electing five financial services experts to our board of directors, and we enhanced our team by adding the capability to our enterprise risk management, security services, financial risk management, compliance and internal audit functions.”
“Following on the successful move of our Dallas colleagues in 2017, we moved our Chicago colleagues into brand new office space, providing them with an open and collaborative work environment and making OCC a more attractive destination for the best talent.”
He continued: “As we look ahead, OCC is working to modernise its technology infrastructure, in what will be the most important effort we will undertake to better serve market participants.”
“While the ENCORE technology clearing system has served OCC well for over two decades, change is required if we are to continue to meet our obligations as a SIFMU, become increasingly innovative and agile as an organisation, and grow as a business.”
He added: “During this modernisation effort, we will continue to invest in ENCORE and deliver effective and efficient clearance and settlement services in a manner that minimises any impact to our current operations.”
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