The Options Clearing Corporation (OCC) will hold its 40th edition Options Industry Conference May 10-12, 2022 at La Cantera Resort & Spa in San Antonio, one of America’s most scenic cities.
The conference focuses on the key topics facing the options industry, from regulatory changes in the United States and Europe to technological developments that are driving monumental changes in markets around the world. This is the first in-person event since the Covid-19 pandemic, said OCC chief administrative officer Dan Busby. Last year it was all virtual, which worked well, he said, but “it’s going to be great to come back in person.”
The Options Industry conference, which attracts approximately 400 industry attendees year after year, is known for its combination of industry education, exciting networking opportunities and events. The premier annual event for high-level management and trading professionals presents content at the intersection of business and regulation, delivering what the industry needs to move forward together.
Mike Hansen, Managing Director of Clearing and Settlement Operations at OCC, said, “Our goal is to provide a unique opportunity for all attendees to discuss with their peers key initiatives that are driving the industry forward.
This three-day event brings together the most diverse and accessible group of key industry professionals, influential speakers and premium content to curate an experience of connection, learning and engagement. There will be two keynote speakers this year – Margaret Brennan, moderator of CBS News’ Face the Nation and CBS News’ chief foreign affairs correspondent; and Dawn DeBerry Stump, former Commissioner of the Commodity Futures Trading Commission. Hansen thinks it’s really going to be a “provoking conversation.”
Panels include: ‘State of the Industry’, ‘Rise of Retail: What’s Next?’ “, “Current problems of market structure”; “Institutional Perspectives on Today’s Options Markets”; “New Frontiers: Industry-Changing Innovations”; and “Secure Markets: Tackling Cybersecurity Challenges” – to name a few.
“I’m really looking forward to learning as much as I can about all the panels. I really can’t pick one,” Hansen said.
Busby added that he looks forward to the “State of The Industry” panel, moderated by Henry Schwartz, Senior Director, Head of Product Intelligence, Cboe: “It’s a really good overview of where we are and where we go.”
New topics for the year include: “Diversity, Equity and Inclusion” moderated by Elizabeth King, President, ESG and Chief Regulatory Officer, Intercontinental Exchange; and “Secure Markets: Tackling Cybersecurity Challenges” moderated by John P. Davidson, Managing Director, OCC. “One of our top cyber people – Erik Dries, Executive Director of Cyber Defense, OCC, will also be participating,” Busby commented.
On May 3, OCC reported that the average daily volume year-to-date through April 2022 was 41.8 million contracts, up 4.2% from the average daily volume year-to-date. the year to April 2021. Total volume was 782.8 million contracts, up 9.4%. compared to April 2021.
The record growth in U.S.-listed options volume from 2021 has continued through 2022, Hansen said. “Our critical risk management, clearing and settlement services have continued to keep pace with these volumes,” he said. “We have also seen significant growth in the number of market participants. So we were able to handle what the industry sent us in terms of volume,”
“As we modernize our technology infrastructure and replace our legacy system, this will allow us to continue to serve our member clearing firms and the general investing public for years to come,” he said.
Asked about recent developments at the OCC, Busby said the organization is in the midst of a massive technological transformation – the Renaissance Initiative. “We continue to develop our new platform and add features,” he said.
“As part of this technology transformation, we are seeking regulatory approval to move our technology into a cloud environment,” he added.
Busby added that during the third quarter, the OCC will publish technical specifications for clearing members and exchange them to prepare for the new platform. “There will be sample data for them to start testing their systems, so it will be a massive orchestration with industry,” he said.
According to Busby, OCC also plans to release a new “What If-Margining” feature. This is a simulation, where clearing members will use for the first time with OCC an API-based platform to submit portfolios on a regular basis. “It’s an opportunity for members to see theoretical types of margin scenarios for analysis and to understand how margin requirements change across positions,” he explained.
Busby further said that OCC is working with various vendors to launch the new risk and data clearing platform in mid-2024.