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OCC's three tiered back-up system includes rigorous initial and ongoing
membership standards, prudent margin requirements and a substantial clearing
fund. This system provides extensive risk protection, even in the most
volatile markets. OCC has been awarded a Standard & Poor's 'AAA' credit
rating every year since 1993 because of these proven risk management
measures. OCC was the first clearing organization in the world to receive
the prestigious 'AAA' rating.
| Providing Market Stability, Efficiency |
OCC is dedicated to promoting stability and financial integrity in the
derivatives markets by focusing on effective risk management. In its role
as guarantor, OCC will ensure that security futures contracts are fulfilled
for the selling and purchasing clearing firms, regardless of the financial
condition of the counterparty. Organizations that clear security futures
through OCC may optimize margin offsets between futures and options through
OCC's TIMS (Theoretical Intermarket Margin System) margin system. TIMS
uses advanced portfolio theory and a sophisticated pricing model to measure
the inherent risk in portfolios containing options, futures, options on
futures and stock positions, which may reduce margin requirements for
OCC Clearing Members.
OCC's clearing infrastructure for security futures supports:
• Security futures contracts traded on any exchange or security
futures market
• Fungible or non-fungible contracts
• Netting of cash flows between options and securities lending
transactions
• Cash or physically settled products
• Adjustments of positions to reflect corporate actions
For more information on becoming an OCC member for the purpose of clearing
security futures, please contact OCC Member Services at 1-800-621-6072.
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