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Options Clearing Corporation facts for kids

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Options Clearing Corporation
Industry Financial services
Founded 1973 (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:

  • NetherlandsABN AMRO
  • United StatesATD
  • United StatesBank of America
  • CanadaBank of Montreal
  • United StatesBank of New York Mellon
  • United KingdomBarclays
  • United StatesBB&T
  • SpainBBVA
  • United StatesBloomberg
  • FranceBNP Paribas
  • CanadaCanadian Imperial Bank of Commerce
  • United StatesCantor Fitzgerald
  • United StatesCharles Schwab
  • United StatesCitadel
  • United StatesCitigroup
  • GermanyCommerzbank
  • SwitzerlandCredit Suisse
  • JapanDaiwa
  • GermanyDeutsche Bank
  • United StatesFidelity
  • United StatesGoldman Sachs
  • United KingdomHSBC
  • United KingdomICAP
  • People's Republic of ChinaIndustrial & Commercial Bank of China
  • NetherlandsING
  • ItalyIntesa Sanpaolo
  • United StatesITG
  • United StatesJP Morgan
  • United KingdomKnight Capital
  • JapanMitsubishi UFJ Financial Group
  • JapanMizuho Financial Group
  • United StatesMorgan Stanley
  • SwedenNASDAQ OMX
  • CanadaNational Bank of Canada
  • FranceNatixis
  • JapanNomura
  • CanadaRoyal Bank of Canada
  • United KingdomRoyal Bank of Scotland Group
  • CanadaScotiabank
  • FranceSociete Generale
  • United StatesState Street
  • United StatesTimber Hill
  • CanadaToronto-Dominion Bank
  • SwitzerlandUBS
  • United StatesVanguard
  • United StatesVirtu Financial
  • United StatesWells Fargo

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