Series 3: 4.2.1.2. Options Clearing

4.2.1.2. Options Clearing

After a stock option is ordered and executed, it goes to the Options Clearing Corporation for clearing. The OCC acts as an intermediary between the buyer and seller of all stock and stock index options. Once it has successfully matched an order from a buyer and seller, it severs the link between the parties and becomes itself the buyer to the seller and the seller to the buyer. All payments are made to and paid by the OCC. OCC members must be self-clearing. They must maintain a minimum amount of net capital in their OCC account