Options Clearing Corporation - OCC

An organization that acts as both the issuer and guarantor for option and futures contracts. The Options Clearing Corporation operates under the jurisdiction of the U.S. Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC). Under its SEC jurisdiction, the OCC clears transactions for put and call options, stock indexes, foreign currencies, interest rate composites and single-stock futures.

As a registered Derivatives Clearing Organization (DCO) regulated by the CFTC, the OCC provides clearing and settlement services for transactions in futures products, as well as options on futures. For securities lending transactions, the OCC offers central counterparty clearing and settlement services.

Founded in 1973, the Options Clearing Corporation is the largest equity derivatives clearing organization in the world. The OCC's mission and values statement states, "OCC is a customer-driven clearing organization that delivers world-class risk management, clearance and settlement services at a reasonable cost; and provide value-added solutions that support and grow the markets we serve."

A clearing member dominated board of directors oversees the Options Clearing Corporation. Most of its revenues are received from clearing fees charged to its members; volume discounts on fees are available. Exchanges and markets that OCC serves include BATS Options Exchange; C2 options Exchange, Inc; Chicago board Options Exchange, Inc; International Securities Exchange, NASDAQ OMX BX, Inc; NASDAQ OMX PHLX, Nasdaq Stock Market; NYSE Amex Options; and NYSE Arca Options.

Investment dictionary. . 2012.

Look at other dictionaries:

  • options clearing corporation — Fin the organization that is responsible for the listing of options and clearing trades in them …   The ultimate business dictionary

  • Depository Trust & Clearing Corporation — Type Private Industry Finance Ge …   Wikipedia

  • Canadian Derivatives Clearing Corporation - CDCC — The central clearing counterparty for exchange traded derivative products, such as options and futures, in Canada. The Canadian Derivatives Clearing Corporation (CDCC) also acts as the clearinghouse for a growing range of over the counter… …   Investment dictionary

  • Clearing (finance) — In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying… …   Wikipedia

  • Clearing Member Trade Agreement - CMTA — An agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing. When the position is consolidated, some brokers will give up their… …   Investment dictionary

  • Options Symbology Initiative — The Options Symbology Initiative is a method that is being introduced by the Options Clearing Corporation to standardize and simplify option ticker symbols. It is being rolled out industry wide in February 2010. Links… …   Wikipedia

  • Clearing House — An agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery and reporting trading data. Clearing houses act as third parties to… …   Investment dictionary

  • clearing — The procedure through which CME Clearing becomes the buyer to each seller of a futures contract, and the seller to each buyer, and assumes responsibility for protecting buyers and sellers from financial loss by ensuring buyer and seller… …   Financial and business terms

  • Central Counterparty Clearing — (CCC) is a process by which financial transactions in equities are cleared by a single (i.e., central ) counterparty. Please see Clearing (finance) for general information about clearing. This article contains specifics about the process as it… …   Wikipedia

  • Hong Kong Exchanges and Clearing — Logo de Hong Kong Exchanges and Clearing Création 2000 …   Wikipédia en Français

  • КЛИРИНГОВАЯ КОРПОРАЦИЯ ПО ОПЦИОНАМ — OPTIONS CLEARING CORPORATIONКорпорация штата Делавэр, акционерный капитал к рой поровну принадлежит Чикагской бирже по торговле опционами, Амер. фондовой бирже, Филадельфийской и Тихоокеанской фондовым биржам. Она зарегистрирована как клиринговая …   Энциклопедия банковского дела и финансов

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.