Options Clearing Corporation facts for kids
| Industry | Financial services |
|---|---|
| Founded | 1973 |
| Headquarters | Chicago, Illinois, U.S. |
| Products | Clearing house (finance), Equity derivatives clearing |
Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It 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. It currently holds approximately $100 billion of collateral deposited by clearing members and moves billions of dollars a day. In 2015 cleared contract volume totaled 4.2 billion making it the third highest annual total in OCC's history.
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 and a designated SIFMU under the Dodd-Frank Act, OCC offer clearing and settlement services for transactions in futures and options on futures contracts. OCC, in conjunction with the U.S. Option Exchanges, fund an educational organization called the Options Industry Council (OIC). OIC is dedicated to helping individual investors, financial advisers and institutions understand the benefits and risks of exchange-listed options.
OCC is overseen by a clearing member dominated board of directors and operates as a financial market utility, receiving most of its revenue from clearing fees charged to its members.
Members include:
ABN AMRO
ATD- Bank of America
Bank of Montreal- Bank of New York Mellon
Barclays- BB&T
BBVA- Bloomberg
BNP Paribas- Canadian Imperial Bank of Commerce
- Cantor Fitzgerald
- Charles Schwab
- Citadel
- Citigroup
Commerzbank
Credit Suisse
Daiwa- Deutsche Bank
- Fidelity
- Goldman Sachs
- HSBC
- ICAP
Industrial & Commercial Bank of China- ING
Intesa Sanpaolo- ITG
- JP Morgan
- Knight Capital
- Mitsubishi UFJ Financial Group
- Mizuho Financial Group
- Morgan Stanley
NASDAQ OMX- National Bank of Canada
- Natixis
- Nomura
- Royal Bank of Canada
- Royal Bank of Scotland Group
- Scotiabank
- Societe Generale
- State Street
- Timber Hill
- Toronto-Dominion Bank
- UBS
- Vanguard
- Virtu Financial
- Wells Fargo
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