(Reuters) — Options Clearing Corp. has agreed to pay $22 million in penalties to settle charges by U.S. regulators that it failed to properly implement and enforce policies aimed at managing risk at the Chicago-based clearinghouse.
Options Clearing failed to comply with its own stress testing rule and clearing fund practices during certain times between October 2019 and May 2021, the US Securities and Exchange Commission claimed in a statement on Thursday. The company agreed to pay $17 million to the securities regulator to settle the charges.
It agreed to pay an additional $5 million to the Commodity Futures Trading Commission for related fees.
The OCC said in a statement that it had identified and reported the problem to the agencies in 2021
and had already taken corrective action.“Most of the work to address this issue has been completed and all remaining actions are on track to be completed within the next year,” CEO John Davidson said in a statement. “We look forward to continuing to work constructively with our regulators as our transformation continues.”
In 2019, the Chicago-based company agreed to pay $20 million to settle earlier allegations by both agencies that it failed to implement policies to address certain risks as required by law.
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