SOURCE: Options Clearing Corporation

Options Clearing Corporation

January 03, 2011 15:29 ET

OCC Announces Record Year for Options, Futures, and Stock Loan Clearing

CHICAGO, IL--(Marketwire - January 3, 2011) - The Options Clearing Corporation (OCC) announced today that total OCC volume in December reached 344,206,175 contracts, a 16% increase over the December 2009 volume of 296,703,081.

OCC ended the year with cleared contract volume reaching 3,925,686,805, an 8% increase over the 2009 volume of 3,625,021,053. 2010 was the busiest year in OCC's history as a result of the eighth consecutive year of record options trading, futures volume that more than doubled, and significant growth in securities lending activity.

Options: Exchange-listed options trading in December increased 16% compared to December 2009 with 341,207,420 contracts. Equity options volume was up 17% from the previous December and set a record daily volume of 29,352,698 contracts on December 16th, 4% higher than the previous record set in May 2010. Index options volume declined 2% from the previous December with 20,741,853 contracts. Total options volume for 2010 came in at 3,899,068,670 contracts, an 8% increase over 2009's annual volume of 3,612,637,118.

Futures: Futures cleared by OCC finished the year with 2,998,755 contracts in December, representing a 74% increase over December 2009 volume of 1,719,560. OCC averaged 105,628 futures contracts per day in 2010, more than double that of 2009. 2010 brought OCC futures clearing to its highest level with an annual total of 26,618,135.

Securities Lending: OCC's stock loan program, including OTC and AQS, saw a 51% increase in new loan activity over December 2009 with 69,429 new loan transactions in December. Total securities lending activity in 2010 was up 64% from 2009 with 656,749 new loan transactions. OCC's stock loan program ended the year with an average daily notional value of $12,692,188,125.

    Dec 2010 Total Contract Volume   Dec 2009 Total Contract Volume   Dec Total Contract % Change vs.  2009   YTD. Avg. Daily Contract 2010   YTD. Avg. Daily Contract 2009   Avg. Daily  Contract % Change vs. 2009
Equity Options   320,465,567   273,792,997   17%   14,327,131   13,360,981   7%
Index Options   20,741,853   21,190,524   -2%   1,145,364   974,880   17%
Total Options   341,207,420   294,983,521   16%   15,472,494   14,335,861   8%
Equity Futures   637,012   347,864   83%   19,727   11,835   67%
Index /
Other Futures
  2,361,503   1,370,571   72%   85,880   37,284   130%
Options on Futures   240   1,125   -79%   21   24   -13%
Total Futures   2,998,755   1,719,560   74%   105,628   49,143   115%
Total Volume   344,206,175   296,703,081   16%   15,578,122   14,385,004   8%

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 15 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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