OCC seeks leverage ratio relief as liquidity shrinks

85% of CCP’s volumes now short contracts on 20 biggest names, claims risk chief

The Options Clearing Corporation (OCC) is seeking guidance from US bank regulators that would cut capital requirements for its members, in a move prompted by shrinking liquidity at the world’s biggest equity options clearer.

The OCC blames the problems on the leverage ratio, currently being debated by international regulators as part of attempts to finalise the remaining elements of Basel III. Criticism of the ratio yesterday by Jerome Powell, a governor of the Federal Reserve, has given the