Copying and distributing are prohibited without permission of the publisher
New automated default management platform
28 January 2014
OCC teams with Securities Finance Trust Company
Securities Finance Trust Company
OCC and Securities Finance Trust Company (SFTC) have
introduced Auction Platform Services (APS) to aid OCC with its
default management process.
APS is a secure, web-based portal that provides OCC with the
ability for listing auction assets, centralised bid submissions
and management/audit reporting. OCC will use
SFTC’s hosted software APS to achieve
administrative efficiency and cost savings.
APS was used to conduct OCC’s most recent
default management simulation exercise with successful
participation from clearing members in November.
SFTC developed APS to help address regulatory concerns and
provide central counterparties with the level of automation and
reporting functionality that demonstrates to regulators,
auditors, boards of directors and compliance groups that their
default management process is conducted in a controlled
"OCC’s ability to conduct auctions of cleared
contracts and collateral is a key component of its default
management programme," said John Fennell, OCC senior vice
president, risk management & treasury operations. "APS was
designed to bring automation and scalability to
OCC’s existing auction process."
"As trade volumes rise, CCPs around the globe are coming
under increasing regulatory scrutiny, particularly as it
relates to their default management procedures and the
associated technology used to support them. They need to
demonstrate that their asset liquidation process is conducted
in a disciplined, efficient and risk controlled manner, while
protecting non-defaulting members from undue loss," said Chris
Poikonen, executive vice president SFTC.