OCC confirms repurchase facility deal 11 March 2015Boston Reporter: Stephen Durham
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The Options Clearing Corporation (OCC) and eSecLending have collaborated with CalPERS to develop a product to help OCC diversify and increase its committed liquidity resources while offering a risk-adjusted return for CalPERS.
The fully collateralised facility offers OCC a source of access to liquidity while maintaining CalPERS鈥檚 conservative risk profile.
It also increases OCC's overall liquidity resources from $2 billion to $3 billion, while diversifying OCC's committed lenders.
鈥淭he diversification of OCC's committed lenders to include CalPERS in addition to our existing base of banks and broker-dealers ensures that sufficient capacity is maintained at all times, which is critical to central counterparties like OCC,鈥� said Craig Donohue, OCC executive chairman.
鈥淓xpanding our liquidity resource pool to draw on non-bank facilities allows OCC to meet payment obligations to clearing members in a timely way, thus promoting the uninterrupted flow of financial markets.鈥�
Administrative agent for the facility, eSecLending, will support CalPERS with all aspects of the transaction.
鈥淭he collateralised facility offers CalPERS an attractive yield within a tightly controlled operating environment and addresses OCC鈥檚 desire to establish right way risk in their funding sources,鈥� said Chris Poikonen, executive vice president at eSecLending.
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