Clearing
As the marketplace evolves, so do the clearing capabilities at OCC. Although OCC began as a clearinghouse for listed equity options, it has grown into a globally recognized entity that clears a multitude of diverse and sophisticated products. OCC operates under the jurisdiction of both the SEC and the CFTC. As a registered clearing agency under SEC jurisdiction, OCC clears transactions for exchange-listed options, security futures and OTC options. As a registered derivatives clearing organization under CFTC jurisdiction, OCC offers clearing and settlement services for transactions in futures and options on futures. OCC also provides central counterparty clearing and settlement services for securities lending transactions. In addition, OCC has been designated as a "systemically important" financial market utility under Title VIII of the Dodd-Frank Act.
OCC protects the integrity of its financial markets by delivering world-class risk management, clearing and settlement services for options, futures, OTC and securities lending transactions. In its role as guarantor and central counterparty, OCC ensures that the obligations of the contracts it clears are fulfilled. Through a novation process, OCC becomes the buyer for every seller and the seller for every buyer, protecting its members from counterparty risk.
OCC is dedicated to promoting stability and financial integrity in the marketplaces it serves by focusing on sound risk management principles, including rigorous initial and ongoing membership standards, prudent margin requirements and a substantial clearing fund.
OCC's mission is to provide market participants with innovative risk management solutions. OCC prides itself by offering industry leading efficiencies in the clearing and settlement of financial transactions. Its systems facilitate fulfillment of margin and settlement obligations and improve the effectiveness of back-office operations. By striving to achieve the highest possible standards of service, OCC promotes stability and integrity in every market it serves.
OCC clears the following products. Click each product to read its specifications:
Long-Term Equity Anticipation Securities® (LEAPS®)