Securities and Exchange Commission
Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Securities and Exchange Commission [Release No. 34-105537; File No. SR-OCC-2026-003] May 21, 2026. I. Introduction On April 8, 2026, the Options Clearing Corporation (“OCC”), filed with the Securities and Exchange Commission (“Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act”)  [ 1 ] and Rule 19b-4 thereunder, [ 2 ] a proposed rule change to amend OCC's System for Theoretical Analysis and Numerical Simulation (“STANS”) Methodology Description to enable OCC to accept binary options for clearing and appropriately manage the risk created by binary options (hereinafter “Proposed Rule Change”). The Proposed Rule Change was published for comment in the Federal Register on April 15, 2026. [ 3 ] For the reasons discussed below, the Commission is approving the Proposed Rule Change. II. Background OCC is a central counterparty (“CCP”), which means that, as part of its function as a clearing agency, it interposes itself as the buyer to every seller and seller to every buyer for certain financial transactions. As the CCP for the listed options markets in the United States, [ 4 ] as well as for certain futures and stock loans, OCC is exposed to various risks arising from providing clearance and settlement services to its Clearing Members. [ 5 ] Because OCC is obligated to perform on the contracts it clears, one such risk that OCC is exposed to is credit risk, incl…
Citation: 91 FR 31513
