|Headquarters||125 S. Franklin Street, Suite 1200, Chicago, IL 60606|
|Key People||Craig Donohue, Executive Chairman; John P. Davidson, Chief Executive Officer|
OCC (formerly The Options Clearing Corporation), founded in 1973, is the world's largest equity derivatives clearing organization. OCC processes trades for all 15 U.S. options exchanges and for some futures markets. It has about 115 clearing members that include the biggest U.S. broker-dealers, futures commission merchants and non-U.S. securities firms. In 2018, the OCC cleared more than 5.24 billion contracts.
OCC is dedicated to promoting stability and financial integrity in the marketplaces by focusing on sound risk management principles. By acting as guarantor, OCC ensures that the obligations of the contracts it clears are fulfilled.
In March of 2011, the organization revised its name and brand identity from The Options Clearing Corporation to OCC to reflect its more diverse suite of clearing solutions.
Although OCC began as a clearinghouse for listed equity options, the company has evolved to clear a multitude of products. OCC operates under the jurisdiction of both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under its SEC jurisdiction, OCC clears transactions for put and call options on common stocks and other equity issues, stock indexes, foreign currencies, interest rate composites and single-stock futures (which are dually regulated by the SEC and CFTC) in the U.S.
As a registered Derivatives Clearing Organization (DCO) under CFTC jurisdiction, OCC also provides clearing and settlement services for transactions in futures and options on futures. Additionally, OCC provides central counterparty clearing and settlement services for two securities lending market structures, OCC's OTC Stock Loan Program and AQS, an automated marketplace for securities lending and borrowing.
OCC was designated a systemically important financial market utility (SIFMU) by the Financial Stability Oversight Council in July of 2012. That designation was part of the Dodd-Frank financial overhaul law.
Overseeing OCC is a clearing member-dominated board of directors. OCC operates as an industry utility and receives most of its revenue from clearing fees charged to its members. OCC offers volume discounts on fees and, as applicable, refund excess fees to its clearing members.
OCC's participant option exchanges include: BOX Options Exchange, Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe Exchange, Inc., Miami International Securities Exchange, LLC, MIAX PEARL, LLC, MIAX Emerald, Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq BX, Inc., Nasdaq MRX, LLC, Nasdaq PHLX, LLC, Nasdaq Options Market, LLC, NYSE American Options, LLC, and NYSE Arca, Inc. Its clearing members serve both professional traders and public customers and comprise about 115 of the largest U.S. broker-dealers, futures commission merchants and non-U.S. securities firms. OCC's goal is to service clearing members and the exchanges through an operating plan that emphasizes timely, reliable and cost-efficient clearing operations.
OCC also serves other markets, including those trading commodity futures, commodity options and security futures. OCC clears futures contracts traded on CBOE Futures Exchange, as well as security futures contracts traded on OneChicago.
The OCC was owned equally by so-called legacy exchanges: Intercontinental Exchange's NYSE ARCA, NYSE MKT, Nasdaq and Cboe Global Markets. With the acquisition of ISE by Nasdaq, Nasdaq's stake in OCC grew from 20 percent to 40 percent.
The Options Clearing Corporation (OCC) was founded in 1973, initially as a clearinghouse for five listed markets for equity options. Prior to its establishment, and due to a great deal of encouragement from the SEC, the Chicago Board Options Exchange had its own clearing entity, the Chicago Board Options Exchange Clearing Corporation. Clearing volumes have increased dramatically since its launch, reflecting the growing use of equity options. In 2001, for example, the clearinghouse sported average daily volumes of 3.1 million contracts. In 2016, average daily volume was 16.1 million contracts.   Average daily cleared options volume topped 20 million per day in 2018.
In 1992, the OCC, in conjunction with the U.S. options exchanges, created the Options Industry Council (OIC), a cooperative tasked with educating the investing public about options.
The OCC started a securities lending program, the Hedge System, in 1993, to allow clearing members to reduce their margin requirements. Clearing of stock loans got a boost in January 2009 when OCC began clearing all stock loans on AQS, an alternative trading system. The program underwent substantial growth in the 2010s, with 1.4 million new stock loan transactions cleared in 2015.
On August 8, 2011, Standard & Poor's lowered the ratings on clearing facilities including the OCC to double-A-plus, one step below the coveted triple-A rating. OCC's then-chairman and CEO Wayne P. Luthringshausen said the rating change would have no negative impact on OCC’s operations or ability to meet its obligations to clearing members. 
Also in 2011, Standard & Poor's and OCC announced a licensing agreement whereby OCC would clear over-the-counter (OTC) options based on the S&P 500. The deal marked the first time a clearing house would clear OTC options on S&P indexes. It also included the S&P MidCap 400 and S&P SmallCap 600. The OTC S&P 500 equity index option clearing services were launched in 2014.
In September of 2013, OCC filed to become compliant with the European Market Infrastructure Regulation, which will enable banks registered in the region to trade U.S. options without incurring higher capital costs for firms there who want to trade U.S. equity derivatives. 
In 2014, OCC and the U.S. options exchanges adopted new principles-based risk control standards designed to reduce the risk of errors or unintended activity that could contribute to a financial loss to participants or the OCC. The new standards included price reasonability checks, drill-through protections, activity-based protections and kill-switch protections.  Also, starting on June 30, 2016, OCC imposed an additional $.02 charge per contract side on clearing members for transactions that have been executed at exchanges that have not demonstrated compliance with the exchange risk control standards.
On March 6, 2015, the SEC approved OCC's capital plan increasing shareholders' equity from $25 million at the end of 2013 to $247 million through the retention of $72 million in 2014 earnings and receipt of $150 million in equity capital contributions from OCC's stockholder exchanges. Under the plan, the stockholder exchanges also committed to provide up to $117 million in capital in the event of unexpected losses, giving OCC access to about $364 million in equity capital resources.  A stay was subsequently put on the approval order for the capital plan, instituted automatically under SEC rules because petitions had been filed requesting review by the full commission. The stay was lifted in September of 2015, but in February of 2019 The SEC rejected OCC's plan to boost cash reserves, dealing a blow to what had been one of the clearing firm’s key initiatives since the financial crisis. OCC will now need to submit a revised capital plan in order to comply with regulations, according to the SEC filing.
OCC announced in 2016 that it would be moving both its Chicago HQ and its Dallas office to a larger spaces in their respective cities.
In January of 2019 OCC announced the Renaissance Initiative, a multi-year investment to redevelop and modernize the company's risk management, clearing and data systems. The project is the biggest upgrade to the OCC's technology in 20 years. The OCC will replace most of its systems, with some of the work carried out in-house and some provided by Cinnober. It expects to turn off the old software in December 2021.
Executive Chairman Craig Donohue said that when completed, the project "will enhance OCC's resiliency, improve our compliance posture, and help us operate in a more effective and efficient manner." 
The SEC approved Phase II of the OCC's Financial Safeguards Framework (FSF) on December 11, 2019. The approved changes to OCC's rules, clearing fund, and stress testing and margin methodology were implemented on December 16.
On December 31, 2013, longtime CEO and chairman Wayne P. Luthringshausen, who worked on the development of the OCC (then the Chicago Board Options Exchange Clearing Corporation) in 1973 and shortly thereafter became CEO, retired from the clearinghouse. Upon his retirement, the OCC split the roles of CEO and chairman, with Michael Cahill becoming CEO. The management moves continued in January 2014 when Craig Donohue became executive chairman. He became CEO in September 2016 and oversaw an overhaul of the OCC's upper management team and transition to a larger and better capitalized organization.
Cahill retired from OCC at the end of 2014 after the company announced the move in September. He worked at OCC for 32 years. The flurry of managerial moves came after the SEC criticized the OCC's risk management and compliance practices in 2013. 
Craig S. Donohue, Executive Chairman
John Davidson, CEO
Scot Warren, Executive Vice President and Chief Operating Officer
Jean Cawley, Executive Vice President and Special Adviser to the Executive Chairman
John Fennell, Executive Vice President and Chief Risk Officer
Jim Kustusch, Executive Vice President, Strategic Clearing Initiatives
Dale Michaels, Executive Vice President, Financial Risk Management
Joe Adamczyk, Senior Vice President and Chief Compliance Officer
Dan Busby, Senior Vice President, Operations
David Hoag, Senior Vice President and Chief Information Officer
Joseph Kamnik, Senior Vice President and Chief Regulatory Counsel
Mark Morrison, Senior Vice President and Chief Security Officer
Hugo Mugica, Senior Vice President and Chief Audit Executive
Tracy Raben, Senior Vice President and Chief Human Resources Officer
Amy Shelly, Senior Vice President and Chief Financial Officer
Julie Bauer, Executive Vice President, Government Relations and Investor Education
David Prosperi, Senior Vice President, Public Relations, Corporate Communications and OIC
Board Members: 
- Craig S. Donohue, Executive Chairman and CEO, OCC
- Andrej Bolkovic, CEO, ABN AMRO Clearing Chicago LLC
- Dr. Thomas R. Cardello, Founding Member, Venice Group
- Mark Dehnert, Managing Director, Goldman Sachs & Co
- Kurt Eckert, Partner and Head of Market Structure, Wolverine Trading
- Thomas A. Frank, Executive Vice President and Chief Information Officer, Interactive Brokers
- Meyer (Sandy) Frucher, Vice Chairman, The NASDAQ OMX Group, Inc.
- David S. Goone, Chief Strategy Officer, IntercontinentalExchange, Inc.
- Elizabeth King, General Counsel of NYSE Group
- Chris Isaacson, Executive Vice President and Chief Operating Officer, CBOE Holdings
- Susan E. Lester, Former Chief Financial Officer
- Richard R. Lindsey, Managing Partner, Windham Capital Management
- Robert Litterman, Chairman, Risk Committee, Kepos Capital
- Stephen Luparello, Managing Director and General Counsel, Citadel Securities
- Christine L. Show, MD and Global Head of Listed Derivative Operations, SG Americas Securities
- Alice P. White, Economist
- Thomas A. Wittman, EVP, Global Head of Equities, NASDAQ
- William T. Yates, Treasurer, TD Ameritrade
- Susan O'Flynn, Managing Director and Global Head of CCP Strategy and Resource Optimization, Morgan Stanley
- Stuart Bourne, Managing Director, Head of Americas Asset Management Services, Bank of America Merrill Lynch
Comprehensive Options Expiration Calendar
The OCC offers customizable trade volume searches, among other tools, at its market data portal.
The OCC provides current and archived news issues that display what the company has been doing throughout the year internally, externally, and on Capitol Hill. These articles can be found over at its OCC newsroom.
OCC Annual Reports
- OCC 2017 Annual Report
- OCC 2016 Annual Report
- OCC 2015 Annual Report
- OCC 2014 Annual Report Winner-2016 FCS Portfolio Awards, Silver, Silver Trumpet Award-2016 Golden Trumpet Awards
- OCC 2013 Annual Report Winner-2014 Silver Trumpet in Golden Trumpet Awards
- OCC 2012 Annual Report Winner-2013 FCS Portfolio Awards, Gold-2013 Golden Trumpet Awards, Honorable Mention-2013 Ragan's PR Daily Awards
- OCC 2011 Annual Report Winner-2012 Ragan's PR Daily Awards
- OCC 2010 Annual Report
- OCC 2009 Annual Report Winner- 2010 FOW Best Innovation for a Clearing House
- OCC 2008 Annual Report
- OCC 2007 Annual Report Winner-2008 BMA Gold Tower Award
- OCC 2006 Annual Report Winner-2007 BMA Bronze Tower Award
- OCC 2005 Annual Report Winner-2006 BMA Bronze Tower Award
- OCC 2004 Annual Report
- OCC 2003 Annual Report
- OCC 2002 Annual Report
- OCC 2001 Annual Report
- OCC 2000 Annual Report
- OCC 1999 Annual Report
John Lothian News Articles
The OCC’s ENCORE clearing system, while resilient, is long in the tooth and inflexible. OCC’s Project Renaissance aims to revamp the central counterparty’s data, risk management and clearing systems. The OCC chose Cinnober as a partner for the multi-year project. While that key initiative is something the OCC has planned for years, the SEC’s decision not to renew the clearinghouse's capital plan was a curveball. In this video from JLN’s Industry Leader Series, OCC CEO John Davidson talks about those two developments.
The OCC is in the process of making what is a big decision for a systemically important financial market utility (SIFMU) - how to best upgrade a tech stack responsible for clearing millions of options and futures contracts daily.
- U.S. options clearinghouse CEO to retire after year in top spot. Reuters.
- OCC Clears Record-Setting 5.24 Billion Total Contracts in 2018. OCC.
- What is OCC?. OCC.
- OCC Announces Its Designation as a Systemically Important Financial Market Utility. OCC.
- Nasdaq buys Deutsche Boerse options market for $1.1 billion. Bloomberg.
- OCC 2001 Annual Report. OCC.
- OCC Timeline. OCC.
- OCC 2016 Cleared Contract Volume Fifth Highest Ever. OCC.
- OCC Stock Loan Programs. OCC.
- OCC 2015 Annual Report. OCC.
- OCC Statement Regarding the S&P Change on OCC Counterparty Risk. OCC.
- S&P And The Options Clearing Corporation Bring Central Counterparty Clearing To OTC Index Options. OCC.
- OCC Prepares to Launch OTC S&P 500 Equity Index Options Clearing. PRWeb.
- OCC Plan May Cut Capital Costs for Europe Options Traders. Bloomberg.
- OCC and The U.S. Options Exchanges Announce New Risk Control Standards to Strengthen Industry Protections. OCC.
- SEC Approves New OCC Capital Plan. SEC.
- OCC Applauds SEC Decision to Discontinue Stay and Proceed with Review of Capital Plan. OCC.
- SEC Rejects Capital Plan by Options Clearinghouse. The Wall Street Journal.
- OCC expands, plans to move Chicago HQ. Crain's Chicago Business.
- OCC selects clearing system from Nasdaq-owned Cinnober. Cinnober press release.
- Volatility spike prompts reforms at equity-options clearing house. The Financial Times.
- OCC Launches Renaissance Initiative to Modernize Technology Infrastructure. OCC.
- Phase II of OCC Financial Safeguards Framework Approved by SEC. OCC.
- U.S. options clearinghouse CEO to retire after year in top spot. Reuters.
- Options Clearing CEO to Step Down. Wall Street Journal.
- OCC Announces Board Appointments And Nominations, Adopts Governance Enhancements. Mondo Visione.
- Board Member Biographies. The Options Clearing Corporation.