SOURCE: OCC

OCC

OCC

February 26, 2010 09:00 ET

BATS Exchange Joins the Options Clearing Corporation

CHICAGO, IL--(Marketwire - February 26, 2010) -  The Options Clearing Corporation (OCC) and BATS Exchange, Inc (BATS) announced today that the BATS Exchange has become an OCC participant exchange. This follows Jan. 26 approval of BATS' options trading rules by the Securities and Exchange Commission (SEC). The BATS Options exchange begins operations of its options trading facility today.

OCC, which operates under the jurisdiction of the SEC and the Commodity Futures Trading Commission, clears and guarantees the trades executed on all U.S. options exchanges. As a result of BATS Exchange's affiliation with OCC, the standardized options contracts traded on BATS can be offset against the same options contracts traded on the other U.S. options markets, resulting in significant efficiencies for participating member firms.

"We thank the OCC team for working with us to meet our aggressive timeline and appreciate their significant contributions to support us in that effort," said Jeromee Johnson, BATS vice president, market development, who has spearheaded the BATS Options project. "We are very excited to launch BATS Options today as we strive to Make Markets Better with a pure price-time priority options market that features superior technology and simple, transparent maker-taker pricing."

Wayne P. Luthringshausen, OCC Chairman and CEO, said, "In the midst of the record growth experienced in the U.S. options industry, OCC is pleased to welcome BATS. As a participant exchange, BATS will be afforded the full range of premier clearing and risk management services available to all of our other exchanges."

About BATS
BATS Global Markets (BATS) is an innovative global financial markets technology company headquartered in the Kansas City, Mo., area with additional offices in New York and London. The BATS platform was launched in January 2006 and, operating as BATS Exchange, Inc., is a premier destination among the top ranked equity markets in the United States. BATS serves the European market through its London based, FSA-authorised subsidiary, BATS Europe, which operates a Multilateral Trading Facility for European securities. Most recently, BATS launched a US equity options market, BATS Options, and expects to launch a second US equities exchange, BYX, in spring 2010. The BATS platform is internally developed by a dedicated core team of market and technology professionals, catering to the needs of the broker-dealer and trading community. BATS... Making Markets Better.

About OCC
OCC is the world's largest derivatives clearing organization by contract volume and open interest. Founded in 1973, OCC operates under the jurisdiction of both the Securities and Exchange Commission (SEC) as a Registered Clearing Agency and the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organization. OCC now provides central counterparty (CCP) clearing and settlement services to 14 exchanges and platforms for options, financial and commodity futures, security futures and securities lending transactions.

As the CCP clearinghouse for the markets it serves, OCC assumes the counterparty risk of members involved in a trade -- becoming the buyer to every seller and the seller to every buyer. OCC manages its risk of member default by collecting margin (collateral). Clearing member margin requirements are calculated using OCC's proprietary System for Theoretical Analysis and Numerical Simulations (STANS) that uses large-scale Monte Carlo simulations to forecast price moves and correlations to make those margin determinations. In 1993, OCC became the first clearinghouse to receive a 'AAA' credit rating from Standard & Poor's Corporation, and has continued to receive that high rating every year as a result of its risk management standards.

OCC operates as a utility clearinghouse, owned by several of its participant exchanges but with a Board of Directors majority drawn from its clearing members, allowing it to provide highly efficient but low-cost solutions to the markets it serves. More information about OCC is available through its Web site at www.optionsclearing.com.

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