Aug
02
Regulators Probe Options Market’s Major Clearinghouse
ByInvestigations by SEC and CFTC were opened after February spike in market volatility
The company tasked with curbing risk in the U.S. options market is under investigation by federal regulators for how it handled a recent period of market turbulence, according to people familiar with the matter.
The probes from the Securities and Exchange Commission and Commodity Futures Trading Commission include concerns that Options Clearing Corp. failed to accurately forecast how much cash would be needed to cover trading losses triggered by a spike in volatility last February, some of the people said….
