OCC to work directly with non-banks
20 January Chicago
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OCC is planning to launch a new programme that will allow it to access new sources of liquidity through repo and securities lending agreements with non-banks.
The US Securities and Exchange Commission (SEC) published a notice of no objection to the central counterparty’s (CCP) plans in the Federal Register on 8 January.
OCC wants to access additional sources of liquidity to meet its settlement obligations without increasing the concentration of its counterparty exposure, according to the notice.
Under the plans, the master repurchase agreement programme will see OCC enter into agreements with non-bank, non-clearing member institutional investors such as pension funds and insurance companies.
“The programme will be part of OCC's overall liquidity plan that is meant to provide OCC with access to diverse sources of liquidity, which includes committed credit facilities, securities lending and securities repurchase arrangements, and clearing member funding requirements that, under certain conditions, allow OCC to obtain funds from clearing members,” according to the notice.
The CCP anticipates that the programme will be about $1 billion in size.
The SEC has signed off on the programme, giving OCC permission to go-ahead from the date of the notice.
The US Securities and Exchange Commission (SEC) published a notice of no objection to the central counterparty’s (CCP) plans in the Federal Register on 8 January.
OCC wants to access additional sources of liquidity to meet its settlement obligations without increasing the concentration of its counterparty exposure, according to the notice.
Under the plans, the master repurchase agreement programme will see OCC enter into agreements with non-bank, non-clearing member institutional investors such as pension funds and insurance companies.
“The programme will be part of OCC's overall liquidity plan that is meant to provide OCC with access to diverse sources of liquidity, which includes committed credit facilities, securities lending and securities repurchase arrangements, and clearing member funding requirements that, under certain conditions, allow OCC to obtain funds from clearing members,” according to the notice.
The CCP anticipates that the programme will be about $1 billion in size.
The SEC has signed off on the programme, giving OCC permission to go-ahead from the date of the notice.
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