Cross Margin Programs
OCC introduced cross margining in 1989 to reduce systemic market risk by recognizing the offsetting value of hedged positions maintained by firms at multiple clearinghouses. By allowing for intermarket hedges, OCC is able to enhance firms' liquidity and financing capabilities through reduced initial margin requirements, fewer margin variations and smaller net settlements.
Since cross margining's inception, the number of products eligible for offset has increased significantly. OCC currently participates in cross margin programs with the Chicago Mercantile Exchange and ICE Clear US as well as offering an internal cross margin program for products where OCC clears both the SEC and CFTC regulated contracts.