A Cornerstone of the Industry
OCC's three-tiered backup system guarantees performance for all of the products it clears. This system of safeguards consists of rigorous initial and ongoing membership standards, prudent margin requirements and a substantial clearing fund.
During unexpected events that affect and challenge the derivatives markets, OCC has proven its stability and quality service to the industry. OCC's disaster recovery capabilities, its technologically advanced data center and its expert risk management programs, along with its focus on customers, enable OCC to provide reliable service at all times.
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.
The management of OCC's business affairs is vested in its Board of Directors which includes diverse representation from exchanges, clearing members, public directors and management.. OCC receives most of its revenue from clearing fees charged to its members. OCC offers volume discounts on fees and, as applicable, refunds excess fees to its clearing members.