Federal Register :: Self-Regulatory Organizations; The Options Clearing Corporation; Notice of No Objection to Advance Notice Related to an Expansion of The Options Clearing Corporation's Non-Bank Liquidity Facility Program as Part of Its Overall Liquidity Plan
The Commission received comments asserting that the proposal would put public retirement funds at risk to cover investing choices made by Clearing Members. The Commission has carefully considered the risk to investors' retirement funds relative to the benefits of expanding the Non-Bank Liquidity Facility. Further, the terms of the facility would require OCC to provide Eligible Securities ( e.g.,Treasuries) subject to haircuts negotiated by OCC and clearing company its counterparties to address the potential credit risk to OCC's counterparties. Moreover, the terms of the facility would require OCC to pay the costs of any covering transactions required if OCC were to fail to perform its obligation. As described above, the expansion of commitments in the Non-Bank Liquidity Facility would reduce the likelihood that OCC would have insufficient financial resources resulting from a Clearing Member default. Now I'm not saying my pain is completely gone, however it's close ...