OCC and The U.S. Options Exchanges Announce New Risk Control Standards to Strengthen Industry Protections

CHICAGO (September 29, 2014) – OCC and the U.S. options exchanges announced today the adoption of risk control standards that include price reasonability checks, drill-through protections, activity-based protections and kill-switch protections, pending regulatory approval.

Earlier this year, OCC and the options exchanges agreed on a principles-based set of exchange risk control standards designed to reduce the risk of errors or unintended activity that could cause or contribute to a financial loss to market participants and OCC. OCC has adopted the risk control standards and approved an implementation plan. The standards will be implemented through an OCC rule that will apply a principles-based approach to options transactions.

Read the full press release on the OCC’s website.