December 2, 2016 / 10:26 PM / 3 years ago

Options Clearing Corp shakes up senior management

CHICAGO (Reuters) - The primary clearinghouse for U.S. options trades named new finance and compliance chiefs on Friday in the latest C-suite shake-up aimed at improving oversight.

The Options Clearing Corp, known as OCC, also said it had hired a former CME Group Inc (CME.O) executive to fill a newly created treasurer’s position.

The changes are part of an overhaul in leadership as OCC works to bolster the way it manages finances and risk after its regulator, the U.S. Securities and Exchange Commission, raised concerns in recent years.

The Financial Stability Oversight Council in 2012 designated the company as a systemically important Financial Market Utility under the Dodd-Frank financial reform. The designation requires compliance with risk management standards and heightened oversight by regulators.

OCC’s latest hires boost “the breadth and depth of experience we believe is necessary to strengthen OCC’s financial management and risk governance culture,” Chief Executive Officer Craig Donohue said in a statement.

Donohue, a former CME chief, became OCC’s CEO in September after joining the company as executive chairman in January 2014. In September, OCC also named a new chief risk officer and chief audit executive, and filled the newly created jobs of chief administrative officer and chief commercial officer.

OCC had separated the chairman and CEO roles when Donohue joined the company, and a company director said in a news release at the time that the move was “proof of OCC’s ongoing commitment to adopt best practices for corporate governance.”

When asked whether OCC’s board had changed its feelings on the matter, given Donohue’s new position in both roles, OCC spokesman David Prosperi said, “It’s a different board and different time.”

Donohue started at OCC following reports in 2013 that the SEC had criticized regulatory compliance, governance and risk management at the company.

OCC is working to “increase our resiliency by being more proactive to address these issues before they become major challenges,” Prosperi said by telephone.

The company has “already addressed a great majority of the remediation issues that were brought forth” by the SEC in recent years, he said.

Chief Financial Officer Kimberly McGarry will leave OCC after two years and be replaced on Monday by Amy Shelly, a former CFO for trading firm Optiver U.S., the company said.

Deputy general counsel Joe Adamczyk will become chief compliance officer, replacing Richard Wallace, a three-year veteran. James Pribel, formerly CME’s treasurer, will fill the new position of first vice president of Treasury.

Reporting by Tom Polansek; Editing by Sandra Maler and Leslie Adler

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