OCC Adds Evergreen Provisions to Liquidity Risk Management Framework

On Oct. 29, 2026, the Options Clearing Corporation (OCC) filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Exchange Act and Rule 19b-4, filing it as Release No. 34-106856, File No. OCC-2026-011 (FR Doc No. 2026-23101). The filing was immediately effective upon submission, and the Commission is now publishing a notice to solicit comments.

The amendment seeks to codify the so-called Evergreen Provisions that allow OCC to renew certain liquidity facilities without filing a separate advance notice. By incorporating these provisions into OCC's Liquidity Risk Management Framework (LRMF), the agency aims to make the renewal criteria more accessible within OCC and subject to its annual review.

The rule change memorializes Evergreen provisions for three liquidity facilities. The revolving credit facility, with an aggregate principal amount of $2.5 billion that may be increased to $3.5 billion, can be renewed annually for a 364-day term. OCC may adjust the commitment by up to $500 million up or down without an advance notice, add or remove lenders subject to the same credit review, change agents, pricing, or collateral haircuts, provided the changes do not materially affect risk. The bank repo facility provides a funding commitment of up to $1 billion for a one-year term and is renewed annually; an advance notice is required only if funding needs exceed $1 billion or if material term changes are contemplated.

All substantive language of the proposed amendment appears in confidential Exhibit 5 to File No. OCC-2026-011. OCC's By-Laws and Rules are publicly available at the OCC website. Interested parties may submit comments to the Commission as directed in the notice.