OCC Commends D.C. Circuit Court Ruling Regarding Capital Plan

Ruling Permits Distribution of Clearing Member Refunds and Dividends

CHICAGO--(BUSINESS WIRE)-- OCC, the world’s largest equity derivatives clearing organization, applauded the order by the U.S. Court of Appeals for the D.C. Circuit yesterday denying a motion intended to restrict OCC from continuing to implement its capital plan. The motion followed a de novo review and approval of the plan by the Securities and Exchange Commission (“Commission”) earlier this month. The U.S. Court of Appeals ruling represents the latest in a series of decisions in favor of OCC’s capital plan and against Susquehanna International Group, LLP, KCG Holdings, Inc., BATS Global Markets, Inc., BOX Options Exchange LLC, and Miami International Securities Exchange, LLC (“Petitioners”).1

“We are pleased that the D.C. Circuit Court has issued this ruling permitting OCC to continue to implement its capital plan,” said Craig Donohue, OCC Executive Chairman. “The Court’s action is consistent with every SEC decision regarding the capital plan since February 26, 2015 – amounting to nearly one full year’s worth of unsuccessful challenges from the same group of Petitioners – and further demonstrates the compelling public interest that OCC’s capital plan serves. Yesterday’s decision also permits OCC to overcome the Petitioners’ roadblocks to facilitating the refunds and dividends that our clearing members and stockholder exchanges are entitled to under the plan.”

The final 2015 refund of $40.0 million, special refund of $69.4 million, and 2015 dividend of $19.7 million were approved by the OCC Board of Directors on February 19, 2016. As a result of the Court’s ruling, OCC will proceed with the distributions under the capital plan. The 2014 refund of $33.3 million, the 2015 refund of $40 million, and the 2015 dividend of $19.7 million will be paid on February 24, 2016. The 2015 special refund of $69.4 million will be paid as soon as practicable in 2016 upon further determination that the amount will not cause OCC’s capital to fall below its total equity capital resource requirement of $247 million.

About OCC

OCC is the world’s largest equity derivatives clearing organization and the foundation for secure markets. Founded in 1973, OCC operates under the jurisdiction of both the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). OCC now provides central counterparty (CCP) clearing and settlement services to 18 exchanges and trading platforms for options, financial futures, security futures and securities lending transactions. More information about OCC is available at www.theocc.com).

1 To date, the SEC has approved OCC’s capital plan three times. On February 26, 2015, the Commission issued a no-objection order under Title VIII of the Dodd-Frank Act to OCC’s implementation of the capital plan. On March 6, 2015, the SEC staff, acting pursuant to delegated authority under the Securities Exchange Act, approved OCC rule changes implementing the plan. On September 10, 2015, the Commission lifted a stay of the capital plan that was automatically implemented by operation of SEC rules. On February 11, 2016, the Commission completed a de novo review of the capital plan consisting of a careful consideration of the entire record by the full SEC, resulting in approval of the plan by the Commission.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006704/en/

OCC Media Contact:
David Prosperi
312-322-4484
[email protected]

Source: OCC

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