OCC's Financial Guarantee
The issuer and guarantor of all FLEX Option contracts is The Options Clearing Corporation (OCC). OCC, founded in 1973, is the world's largest derivatives clearing organization and was the first clearinghouse to receive the "AAA" credit rating from Standard & Poor's Corporation. OCC operates under the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
While an over-the-counter market exists for customized options, it cannot provide the benefit of OCC issuance and clearance, nor the price transparency and competitive bidding process of Exchange auction markets.