May 23, 2024 (NO COMMENTS)

Revised measures “a nightmare” to implement, says one broker-dealer

The Options Clearing Corporation is levying a new charge on clearing members for intraday risk, with lofty bills for their clients’ zero-day-to-expiry option (0DTE) risk exposure. The move has come after rapid growth in 0DTE trading volumes raised concerns that existing end-of-day margin calculations were failing to reflect the risk from firms trading the instruments. A buy-side source familiar with the change says the new add-on charge for 0DTEs means clearing firms will have to put up “tens of