This timeline provides an overview of the significant events in OCC's history. Its history begins in 1973 when the Chicago Board Options Exchange opened its doors to the options world and continues to this day with record-breaking volumes and growth.

Significant Events in the History of OCC

1973

• Chicago Board Options Exchange, Incorporated (CBOE), the first U.S. Exchange to trade listed options, is founded. Call options on 16 issues can be traded.
  
  
• CBOE Clearing Corporation, OCC's predecessor is founded.

1975

• The Securities and Exchange Commission (SEC) approves OCC as the central clearing corporation for exchange-listed options.
  
  
• The American Stock Exchange, Inc. (AMEX) and the Philadelphia Stock Exchange, Inc. (PHLX) begin trading equity options. Both become OCC Participant Exchanges.

1976

• Pacific Exchange, Inc. (PCX) begins trading equity options and becomes a Participant Exchange of OCC. The first multiple listing, Boise Cascade, is listed on CBOE and PHLX.

1977

• SEC allows trading in put options.
  
  
• SEC places moratorium on additional listings pending a review of option’s industry growth.
  
  
• OCC introduces Exercise by Exception (Ex by Ex) as an administrative procedure for the convenience of Clearing Members exercising options on expiration.

1979

• OCC installs a new operating system which yields a peak clearing capacity of 1.2 million contracts per day.

1980

• SEC ends the options industry moratorium.

1982

• OCC implements the Escrow Receipt Depository (ERD) System and introduces the Valued Securities Program. These programs enhance the use of collateral to secure positions and promote the efficiency of clearing member's usage.
  
  
• Industry-wide options contract volume exceeds 500,000 per day.
  
  
• The Options Disclosure Document, also know as Characteristics and Risks of Standardized Options, is created, saving the industry $2 million annually in repetitive costs.

1983

• Cash settled index options trading begins. OCC clears the new product.

1984

• OCC implements Delivery versus Payment (DVP) to enhance foreign currency settlement.
  
  
• OCC creates The Intermarket Clearing Corporation (ICC) for the purpose of guaranteeing, clearing and settling futures, options on futures and commodity options traded on contract markets formed by its participant exchanges and for creating clearing efficiencies for Clearing Members.

1985

• New York Stock Exchange, Inc. (NYSE) begins listing equity options and becomes an OCC Participant Exchange.
  
  
• The National Association of Securities Dealers (NASD) becomes a Participant Exchange of OCC.
  
  
• OCC installs the Clearing Management and Control System (C/MACS), its on-line Clearing Member interface system.

1986

• OCC introduces its Theoretical Intermarket Margin System (TIMS), a risk-based, portfolio margin methodology.

1987

• Year-to-date volume on the U.S. options exchanges reaches 305 million contracts before the stock market correction.
  
  
• OCC extends membership to Canadian firms.
  
  
• In a special clearing agreement, OCC’s clearing services and financial guarantee enable Amex to establish a link with the European Options Exchange (EOE).

1988

• OCC pioneers the use of cross-margining for its Clearing Members.

1989

• OCC introduces INTRACS, its main processing system.

1990

• LEAPS® , options with longer-term expirations, are introduced.
  
  
• OCC implements the Options News Network (ONN) to disseminate OCC and ICC Information Memos and Exchange Bulletins via a network of personal computers.
  
  
• The Ad Hoc Coalition for Intermarket Coordination was formed to lobby in support of regulatory reforms for the benefit of the entire securities industry.

1991

• OCC implements electronic letter of credit amendments through the Society of World-Wide Interbank Funds Transfer (S.W.I.F.T.).

1992

• The Options Industry Council (OIC) is formed by U.S. securities options exchanges and OCC.

1993

• OCC receives its first ‘AAA’ rating from Standard & Poor’s Corporation.
  
  
• OCC introduces the Hedge System, which allows Clearing Members to use borrowed and loaned securities to reduce margin requirements by reflecting the real risks of intermarket hedged positions.
  
  
• The OCC/ICC/CME trilateral cross-margin program is introduced.

1994

• OCC and the Exchanges host a series of seminars - 'Derivatives - A Corporate Users Guide' to educate chief financial officers and treasurers.
  
  
• The Exchanges significantly increase the number of options product listings in flexibly-structured exchange traded options, long-term options, month-end options and interest rate options.
  
  
• The SEC approved a joint OCC/Exchange proposal to modify how capital charges for all listed options and related instruments are calculated.
  
  
• Equity options and index options volumes are both at their highest levels since the record setting year of 1987.

1995

• Equity options volume reaches 174.4 million contracts, the highest level in the 22-year history of exchange-listed options.

1996

• OCC introduces www.optionsclearing.com.
  
  
• OIC introduces www.optionscentral.com.

1997

• Myron S. Scholes and Robert C. Merton are awarded the Nobel Prize in Economics for their pioneering work on options pricing.
  
  
• The "short-short" rule is repealed due to the efforts of the Ad Hoc Coalition for Intermarket Coordination.
  
  
• SEC approves rule change allowing for "risk-based" capital requirements.
  
  
• For the first time, OCC has a mid-year reduction of clearing fees due to higher than expected volume.

1998

• The options industry celebrates its 25^th Anniversary of exchange listed options.
  
  
• OCC releases an enhanced Hedge System.
  
  
• OIC distributes "The Options Toolbox" educational software and opens a London office.
  
  
• OCC commences a new clearing fee structure based on graduated volume discounts.
  
  
• OCC testing proves mainframe Year 2000 readiness as industry testing continues.

1999

• Total options volume closed at 507,891,483 contracts. This marks the first year options trading exceeds the half billion benchmark.
  
  
• Equity options volume hits a daily record high of 3,644,067 contracts.
  
  
• OCC turns the calendar to Year 2000 without any Y2K system problems.
  
  
• OCC prepares for the industry shift to decimalization.
  
  
• OIC introduces a LEAPS® curriculum and implements several enhancements to www.optionscentral.com.
  
  
• OCC avoids interrupted service through disaster recovery procedures during the Aug. 12 power outage in downtown Chicago.
  
  
• Multiple listings escalate on the four options exchanges.

2000

• In October, the highest monthly volume in OCC history hits 75,309,044 contracts. More records are set on Oct. 20, when 4,8777,338 contracts change hands and equity options open interest stands at 75,661,505 contracts.
  
  
• OCC reduces clearing fees up to record 41 percent.
  
  
• OCC begins developing its new clearing system, ENCORE™, which will provide real-time trade information and enhanced communication.
  
  
• The International Securities Exchange joins OCC as a Participant Exchange. It is the first new U.S. options exchange since 1985 and the first all-electronic options exchange.
  
  
• OCC establishes a call center, 1-888-OPTIONS for individual investors and brokers. OIC launches a new Web site with online classes, options tools and seminar registration at www.888options.com.
  
  
• OCC establishes a fully dedicated work area recovery site in Chicago.
  
  
• With the passage of the Commodity Futures Modernization Act of 2000, the Shad Johnson Accord is repealed and the 19-year U.S. ban on single stock futures is abolished.

2001

• OCC sees more record volumes in January and April.
  
  
• The options industry completes the conversion to decimalization.
  
  
• OCC is selected to provide a permanent linkage solution for the options exchanges.
  
  
• OCC opens an office in Washington D.C.
  
  
• OCC is among the world's top clearing organizations to form CCP12, an association dedicated to improving global clearing, netting and central counterparty (CCP) services.
  
  
• OCC receives SEC approval to clear security futures.
  
  
• OCC completes operational readiness testing to clear security futures.
  
  
• Nasdaq - Liffe Markets (NQLX) and OCC sign an official clearing agreement for security futures.
  
  
• Markets are closed for four days after the Sept. 11 terrorist attacks. Amex shares trading floor space with the PHLX to trade options for two weeks after the attacks.
  
  
• OCC moves its offices to One North Wacker.

2002

• In February, The Island Futures LLC signs a clearing and settlement services agreement with OCC for security futures. Two months later in April, OCC executes a clearing and settlement services agreement, and an associated clearinghouse agreement with the Chicago Mercantile Exchange for clearing and settling security futures.
  
  
• Wayne P. Luthringshausen, OCC Chairman and Chief Executive Officer, receives the first annual "Options Industry Appreciation Award" on behalf of the entire options industry in May.
  
  
• In July, OCC sees record-breaking month-end volume of 84,125,909 contracts.
  
  
• On Nov. 8, security futures begin trading.
  
  
• During November, OCC successfully installs the next major release (Release 3.0) of its new clearing system, ENCORE. Release 3.0 encompasses processing from accepting matching trade information on a real-time basis to positions processing.
  
  
• AR100, the country's largest and most prestigious annual report competition, selects OCC’s 2002 annual report, "Basic Values" as one of the top 100 annual reports of U.S. companies at the 18th annual AR100 Show.

2003

• In April, OCC continues its advancement toward real-time trade processing through ENCORE when it accepts immediate processing of trades effected on CBOE and PCX.
  
  
• In May, OCC commits to the FIX Protocol Ltd. Association's FIXML Messaging Standard. OCC also executes a clearing and settlement services agreement with CBOE Futures Exchange.
  
  
• In July, OCC and LaSalle Bank introduce ChicagoFIRST, which is co-chaired by a representative from each organization. ChicagoFIRST is an industry coalition that will address homeland security issues requiring a common response by Chicago's financial community.
  
  
• The ENCORE clearing system begins receiving and processing real-time trades in September from PHLX. ENCORE Release 4.0 is also installed in September with the major component, Delivery Settlement.
  
  
• In November, The Clearing Corporation (“CCorp”) announces its three year agreement in principle with OCC to provide futures post trade execution services for OCC. The agreement supports futures trading on futures markets that are affiliated with options exchanges for which OCC provides clearing services.
  
  
• On Nov. 14, the options industry reaches a new all-time high in total options volume. Volume hits 781,821,162 contracts, surpassing 2001's annual record of 781,261,935 total options contracts.

2004

• In January, options volume reaches new heights when a new weekly record is set with 32,927,566 total options contracts during the week of Jan. 12 - Jan. 16. A new one-day high for cleared total options volume was set on Jan. 16 of 8,604,407 contracts.
  
  
• In February, The Boston Stock Exchange becomes an OCC participant exchange, and through its Boston Options Exchange trading facility begins trading listed options cleared through OCC.
  
  
• In February, Brian Tishuk is appointed Executive Director of ChicagoFIRST.
  
  
• During the spring months, OCC successfully installs ENCORE Releases 4.15 and 4.3.
  
  
• Equity options hit a new annual record on October 15, at 835,047,806 contracts traded, exceeding the 2003 record of 830,308,227 contracts.
  
  
• In December, equity options volume hits one billion contracts for the first time. The year concludes with total equity options volume reaching 1,083,649,226 contracts, exceeding the 830,308,227 total equity options volume contracts traded in 2003 by 30.51 percent. This year's volume set a new annual volume record, surpassing the previous record set last year.
  
  
• In 2004, nine of the top 10 equity options volume days took place.
  

2005

• In April, OCC successful installs the next major release (4.5) of its real-time clearing system. ENCORE release 4.5 expands user capabilities, improves process and approval times, and increases transparency.
  
  
• A new daily volume record is set on Friday, April 15, 2005 when 11,254,044 total options contracts trade hands.
  
  
• OCC surpasses 1 billion contracts in September, and ends the year with over 1.5 billion contracts traded.
  
  
• In October, OCC surpasses annual volume record from previous year.
  
  
• ChicagoFIRST continues to grow, adding six new members in 2005, bringing total membership to 22 members.
  
  
• Year-end total options volume exceeds 1.5 billion contracts.

2006

• On January 20, the option industry set a new record trading day with total volume reaching 14,888,644 contracts.
  
  
• A new monthly record was set in January with total options reaching 178,192,636 contracts.
  
  
• A new monthly record was set in May when 199,714,215 total options contracts changed hands.
  
  
• OCC gains industry support to expand OIC in the areas of Web based education, Institutional marketing and Asia-Pacific outreach.
  
  
• OIC's governing committee is restructured to include representatives from securities firms that are active options market participants.
  
  
• George S. Hender, Management Vice Chairman of The Options Clearing Corporation is named chairman of the Financial Services Sector Coordinating Council for Critical Infrastructure Protection and Homeland Security (FSSCC).
  
  
• On December 22, total options contracts surpassed 2 billion contracts for the first time ever.

2007

• A new record trading day is set on January 5 when 15,831,615 contracts are traded.
  
  
• A new record trading day is set on February 27, 2007, with 18,281,667 contracts traded.
  
  
• A new record trading month is set in May with 229,227,230 total options traded.
  
  
• On July 20, 2007 a new record trading day was is with 18,788,070 contracts traded.
  
  
• A new record trading day is set on July 26, 2007 when 21,313,025 contracts were traded.
  
  
• August 16, 2007 saw a new daily trading volume record with 23,745,650 contracts changing hands.
  
  
• On October 1, 2007 the total number of options traded for the year reached 2,033,134,720 contracts, surpassing the annual volume record set in 2006 of 2,027,847,586 contracts.
  
  
• November saw a new monthly record when volume reached 310,801,122 contracts, marking the first time options volume surpassed 300 million contracts during a trading month.
  
  
• In 2007, all new top ten volume days were recorded.
  

2008

• In January 2008, 357,163,288 contracts were traded setting a new monthly trading volume record 15 percent higher than the previous record set in November 2007.
  
  
• Six of the top 10 highest volume days were recorded in January 2007 for both total options and equity options and daily trading volume surpassed 20 million contracts seven times throughout the month.