Options Clearing Corporation

Options Clearing Corporation (OCC)

Applies to derivative products. Financial institution that is the actual issuer and guarantor of all listed option contracts.

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Options Clearing Corporation (OCC)

An organization established in 1972 to process and guarantee the transactions in options that take place on the organized exchanges. The OCC substitutes its own credit for that of the parties undertaking the options transactions.

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Options Clearing Corporation (OCC). The Options Clearing Corporation issues all exchange-listed securities options in the United States and guarantees all transactions in those options.

The OCC also assigns exercised options for fulfillment, and handles the processing, delivery, and settlement of all options transactions.

The OCC is responsible for maintaining a fair and orderly market in options and is overseen by the Securities and Exchange Commission (SEC). It's jointly owned by the exchanges that trade options.

For an overview of what you should know about options trading, you can check the OCC publication, "Characteristics and Risks of Standardized Options."