Options Clearing Corp. Proposal to Adopt Fitness Standards for Members (Proposed Rule)

76 FR XXX (SEC Release No. 34-65338) (SR-OCC-2011-12)

September 14, 2011

The SEC published for comment a proposal by the Options Clearing Corporation (OCC) to adopt fitness standards for directors, clearing members, and other persons. The proposal is a result of changes made by the Dodd-Frank Act to the regulation of derivatives clearing organizations (DCOs). In particular, the proposed rulemaking would set forth standards for directors and clearing members and their affiliates. The OCC stated that the standards are intended to be "generally similar" to the standards adopted by the DTCC. The rule does not cover all persons "with direct access to the settlement or clearing activities of the [DCO]," as arguably required under the statute; rather, the OCC interprets the term "access" to mean the type of "access" that a clearing member would have.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven Lofchie; Jeffrey L. Robins.

Cross References

Dodd-Frank § 725(c)

Commodity Exchange Act § 5b(c)(2)