Options Clearing Corporation

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Options Clearing Corporation (OCC)

Applies to derivative products. Financial institution that is the actual issuer and guarantor of all listed option contracts.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Options Clearing Corporation

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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."

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
was censured by FINRA and fined $100,000 after the agency found that the firm submitted trade corrections directly through the Options Clearing Corp. (OCC) for orders in multiple options series that resulted in the improper duplication of options trades and the firm incurring a loss of $13.2 million.
At launch, GDF futures on NYSE Liffe US will be supported by Designated Market Makers and cleared by The Options Clearing Corp.
Also listed by the Treasury were the Options Clearing Corp.; CLS Bank International; the Depository Trust Co.; Fixed Income Clearing Corp.; and National Securities Clearing Corp.
The call option is listed, so it trades openly on the CBOE and is guaranteed by the Options Clearing Corp. By assembling the components, rather than buying an off-the-shelf package, the investor ends up with much better counterparties.