19 January 2018
Reporter: Jenna Lomax

S&P reaffirms OCC’s AA+ rating

Standard & Poor's (S&P) has reaffirmed OCC’s financial strength rating of “AA+/stable”.

As part of the reaffirmation, S&P expects OCC to implement all relevant financial safeguards in 2018, provided the clearinghouse receives regulatory approval.

S&P said in its rating report that OCC "enjoys large economies of scale” and stated it has the “ample capacity to absorb up to 2.5 times the largest historical trading volumes per day with the current OCC systems”.

The rating agency considers OCC's operational risk to be high, as the clearinghouse processes an average of 17.5 million contracts daily.

S&P said to reaffirm the rating in future, OCC “must meet the demands of its members and the trading community at large, which requires exceptional technology and back-office operations”.

In December last year, OCC’s securities lending volume increase by 16 percent in new loans, after overseeing 206,338 securities lending transactions in the month.

OCC received an “AA+/stable” rating from S&P in June 2013, which was then reaffirmed in 2015 and 2016.

John Davidson, president and COO of OCC, said: "OCC appreciates S&P's recognition of our exceptional technology and operations, as well as our keen focus on managing operational risk.”

“This is a product of our continuing investment in human and technology resources, plus a durable working relationship with our clearing firms and exchange partners."

Craig Donohue, executive chairman and CEO at OCC, commented: "S&P's decision is a powerful recognition of our efforts to strengthen OCC's financial safeguards framework and to promote stability and market integrity through effective and efficient clearance, settlement and risk management services.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
OFI AM and SETL become shareholders of IZNES
23 February 2018 | Paris | Reporter: Jenna Lomax
OFI AM and SETL have been joined as shareholders of IZNES by five asset management companies
Klesia Finances goes live with NeoXam’s Density solution
23 February 2018 | Paris | Reporter: Jenna Lomax
According to Klesia, Density will assist it in facing the current French and European regulatory landscape
EBA Clearing’s RT1 hits 500,000-transaction-mark
23 February 2018 | London | Reporter: Jenna Lomax
The RT1 system passed the transaction milestone on 19 February
Liz Daniels joins FCA
23 February 2018 | London | Reporter: Becky Butcher
The Financial Conduct Authority has appointed Liz Daniels as policy advisor
Gen II exceeds $175 billion in assets under administration
23 February 2018 | New York | Reporter: Becky Butcher
Gen II Fund Services has revealed that its assets under administration have exceeded $175 billion
SANNE hires Hannah Correll Jaeger
22 February 2018 | New York | Reporter: Becky Butcher
SANNE has appointed Hannah Correll Jaeger as head of client relationship management for the Americas to support the company’s growth
Benelux trio set to strengthen collaboration on blockchain
22 February 2018 | Brussels | Reporter: Becky Butcher
B-Hive, the Luxembourg House of Financial Technology and the Dutch Blockchain Coalition have signed a memorandum of understanding to strengthen further collaboration in blockchain within the Benelux region
More news