Options Clearing

The Options Clearing Corporation (OCC) is a clearing house based in Delaware, with its headquarters in Chicago and additional offices in Texas and Washington, D.C. Founded in 1973, OCC serves as a central clearing entity for equity options markets and is recognized as the largest options clearing organization globally. It is owned by four securities exchanges that facilitate listed stock options. OCC provides essential services including clearing and settlement for equity options, index options, futures, and other derivatives. It plays a crucial role in risk management, monitoring the financial exposure of its clearing members, and managing collateral, holding around $100 billion in deposits. Additionally, OCC facilitates stock borrowing and lending and clears over-the-counter options on major indices. With a broad customer base that includes banks, trading firms, and institutional investors, OCC supports at least 14 exchanges and processes billions of dollars in trades daily, ensuring market stability and integrity.