Market Overview

S&P Says OCC Credit Rating Unaffected by SEC Approval of New Financial Safeguards Framework

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OCC, the
world's largest equity derivatives clearing organization
, today
commented on the August 21 bulletin by Standard & Poor's (S&P) saying
that OCC's AA+/Stable credit rating remains unaffected by the approval
of the company's new financial safeguards framework by the U.S.
Securities and Exchange Commission.

In a bulletin posted to its website, S&P said OCC's decision to "size
its clearing fund to formally provide enough resources to cover the
simultaneous default of its two largest clearing members ("cover 2")
versus a default of its single largest clearing member ("cover 1") in
the current framework… will put OCC at par with most U.S. and European
peers and will be consistent with our expectation, already factored in
the ratings." S&P also said, "… we regard it important that a CCP has
sufficient resources to withstand the liquidity strain that could arise
if two leading clearing members default."

Craig
Donohue
, OCC Executive Chairman and Chief Executive Officer, said,
"S&P's announcement is a strong recognition of OCC's efforts to
strengthen its financial safeguards framework and to promote stability
and market integrity through effective and efficient clearance,
settlement and risk management services."

John
Davidson
, OCC President and Chief Operating Officer, added, "This
announcement reflects favorably on the outstanding work being performed
every day by our team on behalf of our participating exchanges, clearing
firms and market participants. We will continue to focus our energies on
strengthening the resiliency, risk management and capitalization of OCC
in order to ensure confidence in the financial markets and the broader
economy."

Of the 9,328 global entities and sovereigns rated by S&P, only one
percent have an AA+/Stable rating like OCC.

About OCC

OCC is the world's largest equity derivatives clearing organization and
the foundation for secure markets. Founded in 1973, OCC operates under
the jurisdiction of both the U.S. Securities and Exchange Commission
(SEC) as a registered clearing agency and the U.S. Commodity Futures
Trading Commission (CFTC) as a Derivatives Clearing Organization. Named
2018 Best Clearing House by Markets Media, OCC now provides central
counterparty (CCP) clearing and settlement services to 19 exchanges and
trading platforms for options, financial futures, security futures, and
securities lending transactions. More information about OCC is available
at www.theocc.com.

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