OCC Tweaks Margin Calls for Better Intraday Risk Control
Published Date: 6/2/2025
Notice
Summary
The Options Clearing Corporation (OCC) is updating how it checks the value of members’ portfolios during the day to make sure margin calls happen at the right time. This helps OCC better manage risks and keep things safe for everyone involved. These changes mainly affect OCC’s clearing members and aim to improve risk control without changing costs immediately.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 2 costs, 2 mixed.
OCC shifts to near real-time IPL runs
OCC will replace its start-of-day revaluation with an Intraday Profit & Loss (IPL) process that revalues Clearing Member current positions with current prices every five minutes during regular trading hours. The IPL gives OCC authority to issue intraday margin calls based on current positions and prices while generally continuing to collect margin at a single collection time at or around 12:00 p.m. Central Time.
More calls overall, smaller average call size
OCC's one-year backtest (Feb 2024–Jan 2025) shows margin calls would rise by 34%, from 93 to 125 calls, and total margin call amount would increase from $6,448.7 million to $6,991.4 million. Average call size would fall by about 19.3% from $69.3 million to $55.9 million, the minimum call remains $500,000, and the largest call would be reduced by 21.8% to $682.7 million.
Key thresholds and STANS unchanged
OCC will not change the 50% intraday unrealized loss threshold for issuing intraday margin calls, will keep the minimum intraday margin call at $500,000, and will not change STANS margin calculations or ETH margin call procedures. Approval and escalation procedures for intraday calls (e.g., Executive Director or above; Senior Management after 1:30 p.m. CT) remain in place.
Exclusion for CME cross-margin accounts
The amended IPL process will apply to all margin accounts except cross-margin accounts in OCC's cross-margining program with the Chicago Mercantile Exchange (CME), because those accounts do not currently support intraday position feeds.
Implementation tied to Ovation launch
OCC will implement the IPL changes when its Ovation system becomes the system of record, planned for the first half of 2026 and no later than June 30, 2026, and will post an Information Memorandum at least two weeks before the implementation date.
Policy wording and term clarifications
OCC proposes to remove the phrase "start-of-day" from Margin Policy references and to replace the term "total risk charges" with "total margin charges" (which will continue to consist of expected shortfall, stress test charges, and add-on charges) for purposes of intraday margin calls.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-19260, Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4
The SEC wants to stop its federal rule that controls how shareholders can make proposals at company meetings, letting state laws and company rules take over instead. They’re also changing rules so companies can sometimes vote on proposals not in their official materials—but shareholders can opt out if they want. This affects investors and companies, with comments open until November 20, 2026, and could shake up how shareholder voices are heard and counted.
2026-18424, Political Contributions by Certain Investment Advisers
The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing to rescind the political contribution rule under the Investment Advisers Act of 1940 (the "Advisers Act"), which prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after an adviser or any covered associate of the adviser makes a contribution to certain categories of elected officials or candidates, among other prohibitions. In the more than fifteen years since the rule was adopted, implementation challenges associated with the political contribution rule have resulted in a range of significant unintended consequences, including compliance practices among some investment advisers that may have had the effect of restricting all political contributions by the investment advisers and their employees. Market participants also have stated that the political contribution rule is burdensome, complex, and both lacks clarity and creates a de facto strict liability standard. The Commission is of the view that other existing requirements of the Advisers Act and its associated rules, including prohibitions on fraud, fiduciary duty requirements, the compliance rule, and the code of ethics rule (defined below), are likely sufficient to address pay-to-play practices while allowing an adviser the flexibility to implement an approach that is more appropriately tailored to its particular risks, rendering the political contribution rule unnecessary. The Commission also is proposing to amend the rule under the Advisers Act pertaining to books and records consistent with the proposed rescission.
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
Previous / Next Documents
Previous: 2025-09846, Shipping Coordinating Committee Charter Renewal
The Shipping Coordinating Committee’s charter has been renewed by the Secretary of State, so it can keep advising on important shipping rules and safety. This affects anyone involved in shipping and maritime activities, ensuring smooth coordination without any new costs or deadlines. The Committee will continue its work to keep our waters safe and shipping efficient.
Next: 2025-09848, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Instituting Proceedings To Determine Whether To Approve or Disapprove a Proposed Rule Change To List and Trade Shares of the WisdomTree XRP Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares
The SEC is deciding whether to approve the Cboe BZX Exchange’s plan to list and trade shares of the WisdomTree XRP Fund, a new commodity-based trust tied to the cryptocurrency XRP. This affects investors interested in trading XRP through a regulated exchange and could open up new ways to invest starting soon. The SEC is taking its time to carefully review before giving the green light or a no-go.