Options Clearing Corporation

The Options Clearing Corporation (OCC) is a central organization that acts as a guarantor and clearinghouse for stock options and futures trades. When investors buy or sell options, the OCC ensures the transactions are completed smoothly and financially secure, reducing the risk of default. It standardizes and manages the clearing process, maintains records, and guarantees the performance of contracts, which helps maintain market stability and confidence. Essentially, the OCC makes the options market more reliable by ensuring all parties fulfill their contractual obligations.