Options Clearing Corporation (OCC)
Central clearinghouse guaranteeing all US options
What is Options Clearing Corporation (OCC)?
Options Clearing Corporation (OCC) The central clearinghouse for all listed options trades in the United States. The OCC guarantees the performance of every options contract, eliminating counterparty risk. It handles exercise and assignment, ensures margin requirements are met, and processes settlement. The OCC's guarantee is what makes exchange-traded options virtually risk-free from a counterparty perspective.
Complete Definition
The central clearinghouse for all listed options trades in the United States. The OCC guarantees the performance of every options contract, eliminating counterparty risk. It handles exercise and assignment, ensures margin requirements are met, and processes settlement. The OCC's guarantee is what makes exchange-traded options virtually risk-free from a counterparty perspective.
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