OCC default fund shrinks $3 billion

Clearing members of the Options Clearing Corporation (OCC) saw their required contributions to the central counterparty’s default fund shrink in the three months to end-June, for the first time since 2016. 

Total participant contributions to the fund fell to $15 billion, from $18 billion, over the second quarter. Contributions had increased each quarter from December 2016 and peaked at $18 billion at end-March. 

Prior to September 4, the OCC used an internal model methodology that sized the