State Street becomes OCC鈥檚 first bank clearing member
18 December 2025 US
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State Street has become the first bank to be an OCC clearing member.
OCC will provide central counterparty clearing and settlement through its Stock Loan Program for State Street鈥檚 Prime Services platform, which offers integrated custody-based securities lending solutions to investors.
Oberon Knapp, managing director of strategy and head of securities finance at OCC, says: 鈥淪tate Street's decision to be our first bank clearing member is a significant milestone for both OCC and the marketplace, as their willingness to pioneer this path demonstrates the value that central clearing can bring to custody-based services.
鈥淥ur qualifying central counterparty status provides our members with approximately 95 per cent risk-weighted asset savings compared to uncleared lending activity, and our guarantee helps mitigate counterparty credit risk, allowing our clearing members like State Street to focus more resources and time on their core business.
鈥淓xpanded membership continues to be a top priority for OCC so that the broader financial ecosystem can access the capital efficiency, risk reduction, and operational simplicity benefits that OCC鈥檚 central clearing services provide.鈥�
OCC currently operates two programmes in which it acts as principal counterparty for securities lending transactions: the Stock Loan/Hedge Program where trades are executed bilaterally, and the Market Loan Program where trades are executed anonymously through a loan market.
In both programmes, OCC becomes the lender to the borrower and the borrower to the lender for each transaction, guaranteeing the value of the lender鈥檚 lent shares and of the borrower鈥檚 collateral.
Brendan Eccles, global head of Prime Services at State Street, adds: 鈥淎s a market leader with our Prime Services business, becoming an OCC clearing member was a strategic milestone reflecting the growing importance of central clearing in the securities finance landscape.
鈥淭his relationship strengthens our capital efficiency within our custody-based Prime Services model while providing our clients with greater access to securities lending opportunities.鈥�
OCC will provide central counterparty clearing and settlement through its Stock Loan Program for State Street鈥檚 Prime Services platform, which offers integrated custody-based securities lending solutions to investors.
Oberon Knapp, managing director of strategy and head of securities finance at OCC, says: 鈥淪tate Street's decision to be our first bank clearing member is a significant milestone for both OCC and the marketplace, as their willingness to pioneer this path demonstrates the value that central clearing can bring to custody-based services.
鈥淥ur qualifying central counterparty status provides our members with approximately 95 per cent risk-weighted asset savings compared to uncleared lending activity, and our guarantee helps mitigate counterparty credit risk, allowing our clearing members like State Street to focus more resources and time on their core business.
鈥淓xpanded membership continues to be a top priority for OCC so that the broader financial ecosystem can access the capital efficiency, risk reduction, and operational simplicity benefits that OCC鈥檚 central clearing services provide.鈥�
OCC currently operates two programmes in which it acts as principal counterparty for securities lending transactions: the Stock Loan/Hedge Program where trades are executed bilaterally, and the Market Loan Program where trades are executed anonymously through a loan market.
In both programmes, OCC becomes the lender to the borrower and the borrower to the lender for each transaction, guaranteeing the value of the lender鈥檚 lent shares and of the borrower鈥檚 collateral.
Brendan Eccles, global head of Prime Services at State Street, adds: 鈥淎s a market leader with our Prime Services business, becoming an OCC clearing member was a strategic milestone reflecting the growing importance of central clearing in the securities finance landscape.
鈥淭his relationship strengthens our capital efficiency within our custody-based Prime Services model while providing our clients with greater access to securities lending opportunities.鈥�
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