What Is the Options Clearing Corporation (OCC)?

The Options Clearing Corporation (OCC) is an organization that acts as both the issuer and guarantor for options and futures contracts. The largest equity derivatives clearing organization in the world, it operates under the jurisdiction of the Commodities Futures Trading Commission (CFTC) and the 澳洲幸运5官方开奖结果体彩网:U.S. Securities and Exchange Commiss🔯ion (SEC).

The OCC should not be confused with the U.S. Treasury's Office of the 澳洲幸运5官方开奖结果体彩网:Comptroller of the Currency, which also goes by the acronym "OCC."

🍌Understanding the Op🍷tions Clearing Corporation (OCC)

The objective of the OCC, which was founded in 1973, is to instill stability in the 澳洲幸运5官方开奖结果体彩网:equity derivatives market. According to its mission statement, the OCC is a customer-driven 澳洲幸运5官方开奖结果体彩网:clearing organization that delivers risk management, clearance, and settlement services.

Under its SEC jurisdiction, the OCC clears transactions for put and call options, stock indexes, foreign currencies, and interest rate composites. As a registered derivatives clearing organization (DCO) under CFTC jurisdiction, it provides clearing and settlement services for transactions in futures products, as well as 澳洲幸运5官方开奖结果体彩网:options on futures.

The organization essentially acts as a guarantor to ensure the obligations of the contracts it clears are fulfilled. A board of directors (B of D) populated by representatives from exchanges, clearing members and management oversee the OCC, and most of its revenue comes from 澳洲幸运5官方开奖结果体彩网:clearing fees charged to its members.

The OCC also provides research services and other value-added solutions that support and grow the markets that it serves. The corporation serves 16 different 澳洲幸运5官方开奖结果体彩网:exchanges, including the C2 Options Exchange, Chicago Board Options Exchange, International Securities Exchange, Nasdaq BX Options, Nasdaq PHLX, NYSE American Options, and NYSE Arca Options.

History of the Options Clearing Corp🥂oration (OCC)

The aftermath of the 2008 financial crisis brought new scrutiny and purpose to the OCC. Changes were made so it could adapt its operations to better address risk. Federal regulators began to see the OCC as an increasingly integral part of the ཧgovernance and oversight of the markets. The heightened attention focused on the organization brought with it some unfavorable assessments by regulators.

In 2013, the SEC criticized the OCC’s management and planning for the way it handled market-wide issues. The SEC also said the OCC’s management at that time lacked appropriate supervision in terms of 澳洲幸运5官方开奖结果体彩网:corporate governance. The SEC further cited numerous 澳洲幸运5官方开奖结果体彩网:conflicts of interest with the management and board of directors, which called into question the organization’s commitment to regulatory compliance.

This led to the introduction of new executive leadership, including the addition of new positions to reinforce the OCC's compliance efforts.

Current Leadership

The OCC's management and leadership currently consist of a diverse team of people from different parts of the investment world, including exchanges, clearing members, and other directors. As of Oct. 2022, key figures include:

• Craig S. Donohue: Before joining the OCC as executive chair in 2014, Donohue spent more than 20 years in global 澳洲幸运5官方开奖结果体彩网:financial markets. He was CEO of 澳洲幸运5官方开奖结果体彩网:CME Group between 2004 and 2012 and has been previously recognized by Harvard Business Review and Institutional Investor Magazine.
• John P. Davidson: As 澳洲幸运5官方开奖结果体彩网:chief executive officer (CEO), Davidson is responsible for oversight of the OCC's financial and corporate risk management, compliance, and technology functions. Davidson became CEO in 2019, two years after joining the OCC as president and chief operating officer (COO). According to his bio, he has more than three decades' worth of experience in global financial markets.
• Scot Warren: Warren is the corporation's executive vice president and 澳洲幸运5官方开奖结果体彩网:chief operating officer (COO). Among other things, he oversees the OCC's finance, project management, operations, and 澳洲幸运5官方开奖结果体彩网:human resources (HR). Warren previously served as senior managing director of the CME Group's Equity Products and Index Services.