S&P reaffirms OCC鈥檚 AA+ rating
19 January 2018 Chicago
Image: Shutterstock
Standard & Poor's (S&P) has reaffirmed OCC鈥檚 financial strength rating of 鈥淎A+/stable鈥�.
As part of the reaffirmation, S&P expects OCC to implement all relevant financial safeguards in 2018, provided the clearinghouse receives regulatory approval.
S&P said in its rating report that OCC "enjoys large economies of scale鈥� and stated it has the 鈥渁mple capacity to absorb up to 2.5 times the largest historical trading volumes per day with the current OCC systems鈥�.
The rating agency considers OCC's operational risk to be high, as the clearinghouse processes an average of 17.5 million contracts daily.
S&P said to reaffirm the rating in future, OCC 鈥渕ust meet the demands of its members and the trading community at large, which requires exceptional technology and back-office operations鈥�.
In December last year, OCC鈥檚 securities lending volume increase by 16 percent in new loans, after overseeing 206,338 securities lending transactions in the month.
OCC received an 鈥淎A+/stable鈥� rating from S&P in June 2013, which was then reaffirmed in 2015 and 2016.
John Davidson, president and COO of OCC, said: "OCC appreciates S&P's recognition of our exceptional technology and operations, as well as our keen focus on managing operational risk.鈥�
鈥淭his is a product of our continuing investment in human and technology resources, plus a durable working relationship with our clearing firms and exchange partners."
Craig Donohue, executive chairman and CEO at OCC, commented: "S&P's decision is a powerful recognition of our efforts to strengthen OCC's financial safeguards framework and to promote stability and market integrity through effective and efficient clearance, settlement and risk management services.鈥�
As part of the reaffirmation, S&P expects OCC to implement all relevant financial safeguards in 2018, provided the clearinghouse receives regulatory approval.
S&P said in its rating report that OCC "enjoys large economies of scale鈥� and stated it has the 鈥渁mple capacity to absorb up to 2.5 times the largest historical trading volumes per day with the current OCC systems鈥�.
The rating agency considers OCC's operational risk to be high, as the clearinghouse processes an average of 17.5 million contracts daily.
S&P said to reaffirm the rating in future, OCC 鈥渕ust meet the demands of its members and the trading community at large, which requires exceptional technology and back-office operations鈥�.
In December last year, OCC鈥檚 securities lending volume increase by 16 percent in new loans, after overseeing 206,338 securities lending transactions in the month.
OCC received an 鈥淎A+/stable鈥� rating from S&P in June 2013, which was then reaffirmed in 2015 and 2016.
John Davidson, president and COO of OCC, said: "OCC appreciates S&P's recognition of our exceptional technology and operations, as well as our keen focus on managing operational risk.鈥�
鈥淭his is a product of our continuing investment in human and technology resources, plus a durable working relationship with our clearing firms and exchange partners."
Craig Donohue, executive chairman and CEO at OCC, commented: "S&P's decision is a powerful recognition of our efforts to strengthen OCC's financial safeguards framework and to promote stability and market integrity through effective and efficient clearance, settlement and risk management services.鈥�
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 网爆吃瓜 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 网爆吃瓜 Finance Times
