OCC Guaranteed Contract Performance
All options contracts traded on U.S. securities exchanges, including FLEX Options, are issued, guaranteed and cleared by The Options Clearing Corporation (OCC). OCC, founded in 1973, is the world's largest derivatives clearing organization. Among other things, OCC is a registered clearing corporation with the Securities and Exchange Commission (SEC) and plays a critical role in the U.S. capital markets as the exclusive clearinghouse for exchange-traded options.
While an over-the-counter market exists for customized options, it does not provide the same benefit of OCC’s guarantee of performance to selling and purchasing clearing members of FLEX Options, nor the price transparency and competitive bidding process of Exchange auction markets.