The Options Clearing Corporation implemented its cash-interest rule on 1 October 2026, following SEC approval on 16 September. The change gives clearing members an interest payment on eligible margin cash and broadens the basis for interest on Clearing Fund cash.[1][2]
Under the current rules, interest accrues daily at the Federal Reserve’s Interest on Reserve Balances rate, less an administrative fee, and is paid monthly. Members must supply required tax documentation. Margin cash in OCC/CME cross-margin accounts is excluded. The fee schedule sets the deduction at 10 basis points annually, applied to average daily eligible cash balances.[3][4]
How the interest treatment changed
| Balance | Before change | Implemented treatment |
|---|---|---|
| Margin cash outside cross-margining | No interest payment to the member | Interest on Reserve Balances rate less 10 basis points |
| Clearing Fund cash | Interest earned on amounts at the Federal Reserve, less 5 basis points | Interest on Reserve Balances rate less 10 basis points on all Clearing Fund cash |
At a constant US$10 million eligible balance, 10 basis points is an annualised US$10,000. The deduction reduces the annual benchmark rate by 0.10 percentage points. Actual monthly amounts depend on balances and the applicable rate.[4]
OCC expects paying on margin cash to encourage members to post more cash instead of securities. That can help a clearinghouse meet cash obligations without first converting collateral. The approval also permits securities-customer margin cash to be held at a Federal Reserve Bank, adding a custody option.[2]
The table also explains the trade-off. Margin cash gains a return where none was paid before; already remunerated Clearing Fund cash faces a larger fee. Whether a member prefers cash still depends on its funding cost and alternative collateral.[2][5]
The published payment obligation is to the clearing member. It does not itself set the interest credited to an individual brokerage customer; that requires the broker’s own account terms.[3]
Sources & further reading
- OCC rule register: cash-interest implementation on 1 October 2026 The Options Clearing Corporation · Accessed 21 Oct 2026
- SEC approval of OCC cash-margin interest: Release 34-106391 US Securities and Exchange Commission / Federal Register · 21 Sep 2026 · Accessed 21 Oct 2026
- OCC Rules: 1 October 2026 version, Rules 604B and 1002 The Options Clearing Corporation · Accessed 21 Oct 2026
- OCC Schedule of Fees: October 2026 The Options Clearing Corporation · Accessed 21 Oct 2026
- Original OCC cash-interest proposal and prior treatment US Securities and Exchange Commission · 31 Jul 2026 · Accessed 21 Oct 2026