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Options clearing Corp. margin

(OCC) is a United States clearing house based in Chicago. The clearing house specialises in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 14 exchanges. Instruments include options, financial and commodity futures, security futures and securities lending transactions.

Like all clearing houses, the OCC acts as guarantor between clearing parties ensuring that the obligations of the contracts they clear are fulfilled.

As of 2011, OCC was the largest equity derivatives clearing organization in the United States and operates under the jurisdiction of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under its SEC jurisdiction, OCC clears transactions for put and call options on common stock and other equity issues, stock indexes, foreign currencies, interest rate composites and single-stock futures. As a registered Derivatives Clearing Organization (DCO) under CFTC jurisdiction, OCC offer clearing and settlement services for transactions in futures and options on futures contracts.

History[edit]

OCC's predecessor Chicago Board Options Exchange Clearing Corporation is founded in 1973 when the CBOE list traded options for the first time.

In 1975 the Securities and Exchange Commission (SEC) approves OCC as the central clearing corporation for exchange-listed options. Over the next two years the Pacific Exchange (PCX) The American Stock Exchange (AMEX) and the Philadelphia Stock Exchange (PHLX) join the OCC as clearing members.

In 1985, OCC implements delivery versus payment (DVP) to enhance foreign currency settlement. The following year New York Stock Exchange and the National Association of Securities Dealers (NASD) become Participant Exchanges of OCC. IN 1987 OCC extends membership to Canadian firms and also sets up special clearing agreement, OCC's clearing services and financial guarantee enable Amex to establish a link with the European Option Exchange (EOE).

In 1994, The exchanges significantly increase the number of options product listings in flexibly structured exchange-traded options, long-term options, month-end options and interest rate options leading to significant increases in volume for the OCC.

In 2000, The International Securities Exchange joins OCC as a Participant Exchange. It is the first new US options exchange since 1985 and the first all-electronic options exchange. This is followed by a number of other electronic exchanges over the next decade including, The Island Futures, NASDAQ Options, announced it has chosen OCC to take over clearing responsibilities for its US futures arm.

Participant exchanges and clearing members[edit]

OCC's participant exchanges include: BATS, Chicago Board Options Exchange, International Securities Exchange, NASDAQ OMX BX, Inc., NASDAQ OMX PHLX, Nasdaq Stock Market, NYSE Amex, and NYSE Arca. Its clearing members serve both professional traders and public customers and comprise approximately 120 of the largest U.S. broker-dealers, futures commission merchants and non-U.S. securities firms. OCC's goal is to service clearing members and the exchanges through an operating plan that emphasizes timely, reliable, and cost-efficient clearing operations.

Shipping by airmail from UK: items normally reach US addresses within a few days but can take longer THE STOCK EXCHANGE: The clearing House. London, antique print c1880
Home (Shipping by airmail from UK: items normally reach US addresses within a few days but can take longer)
  • Caption below print: The clearing house
  • Condition: Good; suitable for framing. However, please note: Verso text quite apparent in margin; The image shown may have been taken from a different example of...
  • Size: 14.0 x 14.0cm, 5.5 x 5.5 inches (Small)
  • Type & Age: Year printed c1880. Antique wood engraved print
  • Verso: There are images and/or text printed on the reverse side of the picture which are likely to show through the page to some extent because the paper is quite...
Shipping by airmail from UK: items normally reach US addresses within a few days but can take longer LONDON: Clearing House, Lombard St, antique print, 1847
Home (Shipping by airmail from UK: items normally reach US addresses within a few days but can take longer)
  • Caption below print: The Clearing-House, in Lombard-Street
  • Condition: Good; suitable for framing. Please check the scan for any blemishes prior to making your purchase.
  • Size: 14.5 x 23.5cm, 5.75 x 9.25 inches (Medium)
  • Type & Age: Year printed 1847. Antique wood engraved print
  • Verso: There are images and/or text printed on the reverse side of the picture. In some cases this may be visible on the picture itself (please check the scan prior...

Popular Q&A

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Why for some classes does the volume on the OptSum file not always add up to what is published by the OCC (Options Clearing Corp)?

The data published by the OCC is cleared volume and also includes volume from other options exchanges. The OptSum data is reported rather than cleared volume and is restricted to CBOE volume at this time.

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What is Options Clearing Corp. (OCC)?

Corporation, owned by the stock exchanges, providing trade comparison and settlement services for all option trades on U.S. Securities exchanges. The corporation's prospectus, given to option traders, describes its rules for ethical conduct and outlines trading risks in exchange traded options. OCC's Intermarket Clearing Corporation also provides a link to the New York Futures Exchange.

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