SEC Approves OCC Rule Change Expanding Membership Standards
The order, filed Oct. 21, 2026 (File No. SR-OCC-2026-009), binds all OCC clearing members and applicants starting immediately.
On Oct. 21, 2026 the Securities and Exchange Commission issued an order approving the Options Clearing Corporation's proposed rule change (Release No. 34-106706; File No. SR-OCC-2026-009). The amendment revises OCC's requirements and procedures for membership, protective measures and sanctions, including the suspension of members.
The notice adds confidentiality standards in proposed Rule 207(d). Clearing Members must protect OCC Confidential Information with at least a reasonable standard of care, and a breach may lead OCC to seek injunction or other equitable relief. The rule does not preclude OCC from providing confidential information to the government or other regulatory authority.
Admission criteria are tightened. Proposed Rule 201(b) requires applicants to have an operating history of at least one year in the same or substantially same business activities, or to maintain senior personnel with sufficient background. Amendments to Rule 204 insert the phrase "or its designated delegates or agents," allowing the Risk Committee to delegate authority to approve or deny new applications and business expansion requests, thereby eliminating the need to wait for quarterly Risk Committee meetings.
The proposal also imposes new notification and physical-office requirements. Applicants must notify OCC within two business days of any statutory disqualification or regulatory investigation involving the applicant or a Key Person. Rule 204(g) requires applicants to maintain physical office space unless OCC determines a remote model does not present heightened risk, and subjects applicants to on-site visits as part of OCC's onboarding process.
Additional provisions give OCC the ability to deny or restrict applicants based on elevated risk factors, including risks associated with Key Persons (Rule 204(e)), require denied applicants to address specific grounds for denial before reapplying (Rule 204(f)), and set standards for evaluating AML and OFAC compliance (Rule 101).
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