OCC, the worlds largest equity derivatives clearing organization, said it would provide Commissioners and staff of the U.S. Securities and Exchange Commission any information it needed to evaluate OCCs capital plan in light of the decision by the U.S. Court of Appeals for the D.C. Circuit to remand it to the agency for further review.
While we are disappointed in the Courts decision to remand, we are pleased by its ruling that the SECs order approving the capital plan remains in effect, said Craig Donohue, OCC Executive Chairman and Chief Executive Officer. OCCs capital plan is a vital component of our goal of providing world-class service to market participants and helping to ensure the resiliency of a Systemically Important Financial Market Utility. We intend to submit underlying data and any other information the SEC may request as it further evaluates the capital plan in consideration of the statements made by the D.C. Circuit in its opinion. We remain confident that the SEC will once again approve the capital plan.
OCCs capital plan has been in effect since September 10, 2015 when the SEC lifted the automatic stay of the staff order approving OCCs proposed rules to implement the plan. The plan enables OCC to comply with an important regulatory requirement that a systemically important clearing agency have sufficient liquid net assets funded by equity to cover potential general business losses, and also have a plan for raising additional equity if its equity falls close to or below the required amount. This requirement is in the SECs Standards for Covered Clearing Agencies, which are in furtherance of section 17A of the Securities Exchange Act. As a result of adopting the capital plan, OCC greatly strengthened its capital position, going from $25 million in 2014 to $247 million in 2015.
