Options Clearing Corporation (OCC)

The Options Clearing Corporation (OCC) is a self-regulatory organization (SRO) that is responsible for clearing and settling all options trades in the United States. The OCC is a private, not-for-profit corporation that was founded in 1973. It is overseen by the Securities and Exchange Commission (SEC).

The OCC's primary function is to guarantee the performance of all options contracts. This means that if one party to an options contract defaults, the OCC will step in and fulfill the contract on their behalf. The OCC also provides a central clearinghouse for all options trades. This means that all options trades are settled through the OCC, which reduces the risk of counterparty default.

The OCC is also responsible for setting the rules and regulations for the options market. These rules are designed to protect investors and ensure the integrity of the market. The OCC also conducts market surveillance to monitor for potential fraud or abuse.

The OCC is a critical part of the options market. It plays a vital role in ensuring the safety and efficiency of the market. The OCC's mission is to "protect investors, maintain market integrity, and facilitate the efficient operation of the options market."

Here are some additional details about the OCC:

* The OCC is headquartered in Chicago, Illinois.
* The OCC employs over 1,000 people.
* The OCC clears and settles over $2 trillion in options trades each day.
* The OCC is a member of the Financial Industry Regulatory Authority (FINRA).

The OCC is a key player in the financial markets. It plays a vital role in ensuring the safety and efficiency of the options market. The OCC's mission is to "protect investors, maintain market integrity, and facilitate the efficient operation of the options market."