Options Clearing Corporation Definition
Options Clearing Corporation - OCC refers to the organization that handles clearing of the options trades for the options exchanges and regulates the listing of new options. OCC acts as both the issuer and guarantor for option and futures contracts. As this organization guarantees all option contracts, options are free of default risk. Traders only face the credit risk of the OCC, not the credit risk of the counterparty. The Options Clearing Corporation is regulated by both the SEC and the CFTC.