NSCC and OCC to enhance co-operation on large cash calls

New deal would improve management of options expiries, but will stop short of cross-margining

Handshake

Two major equities clearing houses are working on an agreement that would see them better communicate on member exposures, to avoid calling too much cash at the same time.

The updated agreement between the Options Clearing Corporation (OCC) and the National Securities Clearing Corporation (NSCC) aims to reduce the risk of an unnecessary liquidity squeeze that could trigger member defaults.

This goal would be achieved by enhanced information-sharing between the two central counterparties (CCPs)

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