Download stock loan fee increase - The Options Clearing Corporation

#39527
DATE:
AUGUST 17, 2016
SUBJECT:
STOCK LOAN FEE INCREASE
On July 29, 2016, the Options Clearing Corporation filed with the U.S. Securities and
Exchange Commission a proposed change to OCC’s Schedule of Fees in conjunction with
enhancements to OCC’s Stock Loan Program, which encompasses both the Stock Hedge
Program and Market Loan Program. The Stock Loan Program’s transaction volumes and
notional values have increased significantly over the past few years. While OCC has made
other fee changes during this time, it has not updated the Stock Loan Program’s fees. The fee
change is necessary for OCC to invest in resources that will allow the Stock Loan Program to
meet increased operational and risk management demands that have resulted from the
Program’s increased scale. It also will allow OCC to enhance its systems and processes to
provide a more robust and valuable Stock Loan Program.
OCC’s current fee is $1.00 per new loan transaction per counterparty. The new fee would add
a monthly 0.4 basis point annualized charge for borrowers on average daily notional
outstanding balances in addition to the current $1.00 clearing fee for both borrowers and
lenders. The new Schedule of Fees will be applied to both the OCC Stock Hedge Program
and the Market Loan Program. The fee will become effective on October 1, 2016.
If you have any questions regarding this memo, please contact the OCC Member Services
Help Desk at the following numbers: 800-544-6091 or 800-621-6072. Within Canada, please
call 800-424-7320. Clearing Members may also e-mail us at [email protected].