#58458

Why It Matters

The change forces clearing members to adjust their settlement processes and introduces additional operational risk, which could affect liquidity and pricing of RAPT options.

Key Takeaways

• NSCC stops settling RAPT option exercises effective Feb 27, 2026
• OCC mandates broker‑to‑broker settlement for all RAPT exercises
• Delivery delays possible; cash settlement may be used
• Clearing members must use Broker‑to‑Broker Delivery Advice daily
• Settlement method uncertainty could affect RAPT option liquidity

Pulse Analysis

On February 27, 2026 the Options Clearing Corporation (OCC) announced that the National Securities Clearing Corporation (NSCC) will no longer accept settlement of RAPT Therapeutics, Inc. (RAPT) option exercises. As a result, every exercise or assignment of RAPT options will settle on a broker‑to‑broker basis, with the standard deliverable of 100 RAPT shares. The OCC clarified that no exercise restrictions are being imposed, but the settlement pathway has shifted entirely away from the NSCC clearing model, potentially increasing settlement timelines for pending exercises.

The new process requires clearing members to monitor a separate Broker‑to‑Broker Delivery Advice report each trading day. When a member cannot deliver the underlying shares on the scheduled date, both the delivering and receiving parties must notify the OCC, triggering a delayed settlement or, if necessary, a cash settlement determined by the OCC. Members are also required to submit written proof of inability to deliver, per OCC By‑Law Article VI, Section 19, ensuring a documented audit trail.

The organization also retains the option to enforce a buy‑in of shares by the receiving member, ensuring that obligations are ultimately satisfied despite the disrupted clearing channel. For traders and investors, the shift introduces additional operational risk and may compress liquidity in RAPT options until a new clearing arrangement is confirmed. Market participants must adjust their trade‑capture systems, communicate promptly with counterparties, and factor potential cash‑settlement outcomes into pricing models. The broker‑to‑broker framework could widen bid‑ask spreads for RAPT options, as dealers price in added settlement uncertainty, underscoring the importance of vigilant monitoring of OCC notices.