Statement Summary
The Securities and Exchange Commission (SEC) has announced that The Options Clearing Corporation (OCC) filed a proposed rule change to adopt the Amended and Restated Participant Exchange Agreement (New RPEA). This update aims to enhance business practices, align with current laws, and modernize terminology to reflect operational changes between OCC and the national securities exchanges listing equity options. Key improvements include updates for technology changes, updated responsibilities for exchanges regarding options trades, and a clearer format for the agreement.
The New RPEA is intended to promote efficient operations and protect investor interests while providing clarity on the roles and responsibilities of all parties involved. The SEC is soliciting comments on this proposed change before finalizing its approval.
Original Statement
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103106; File No. SR-OCC-2025-006]
Self-Regulatory Organizations; The Options Clearing Corporation; Notice of Filing
of Proposed Rule Change by The Options Clearing Corporation concerning the
adoption of the Amended and Restated Participant Exchange Agreement (“New
RPEA”) between OCC and each of the national securities exchanges that list equity
options.
May 22, 2025.
Purpose and Statutory Basis
This proposed rule change is designed to replace the current Restated Participant Exchange Agreement (“Existing RPEA”) with the New RPEA to (1) enhance the operational and business practices between the parties, (2) account for any intervening amendments and changes to relevant law and/or OCC By-Laws and Rules, and (3) eliminate provisions that are out-of-date. This proposed rule change does not require any changes to the text of OCC’s By-Laws or Rules.
Details of the Proposed Changes
General changes throughout the New RPEA include (i) changing references from “the Corporation” to “OCC” to align the New RPEA with OCC’s current brand identity and (ii) changing references to exchanges from “Participating Exchange” to “Exchange.” Specific changes include:
- Introductory Paragraphs: Updated to reflect agreement amendments.
- Exchange Authority to Trade Options: Amendments to compliance representation and operational clarifications.
- List of Options: Removal of outdated procedures and simplification of terms.
- Indemnification: Clarifications regarding liability related to the Options Disclosure Document.
Clearing Agency’s Response to Comments
Written comments were not solicited with respect to the proposed change and none have been received.
Invitation for Additional Comments
Interested persons are invited to submit written data, views and arguments concerning the proposed rule change. Comments may be submitted through various methods detailed below:
- Electronic Comments:
- Use the Commission’s internet comment form.
- Send an email to rule-comments with the subject line SR-OCC-2025-006.
- Paper Comments:
- Send paper comments in triplicate to Vanessa Countryman, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090.
Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly.
