SOURCE: Options Clearing Corporation

Options Clearing Corporation

September 01, 2010 15:23 ET

OCC Announces Total Contract Volume Remained Flat in August While Stock Loan Program Activity Continued to Grow

CHICAGO, IL--(Marketwire - September 1, 2010) -  The Options Clearing Corporation (OCC) announced today that total OCC cleared volume in August reached 285,128,314 contracts, representing a 1% decrease over the August 2009 volume of 287,627,998 contracts. OCC's year-to-date average daily volume is up 7% compared to 2009 with 15,440,615 and year-to-date total volume is up 7% with 2,578,582,756 contracts. Activity in OCC's securities lending program has continued to grow with an 88% increase over last August.

Options: Exchange-listed options trading volume reached 283,487,110 contracts in August, a 1% decrease from August 2009. Index options trading rose 10% from the previous August. Year-to-date average daily contract volume for exchange-listed options is up 6% compared to the same period last year.

Futures: Futures cleared by OCC in August rose to 1,641,204 contracts with a year-to-date average daily contract volume of 100,888. Equity futures volume reached 407,036 contracts, a 53% increase over the same month last year when 266,891 were traded. Index and other futures volume came in at 1,233,881 this month and show a year-to-date average of 79,319 daily contracts.

Securities Lending: In addition to the 88% increase from August 2009, OCC's stock loan program, including OTC and AQS, saw an 9% increase in new loan activity over July with 59,778 new loan transactions in August. Year-to-date securities lending activity is up 62% from 2009 with 400,204 new loan transactions in 2010. OCC's stock loan program had an average daily notional value of $13,171,478,824 in August.

    August 2010 Total Contract Volume   August 2009 Total Contract Volume   August Total Contract % Change vs. 2009     YTD. Avg. Daily Contract 2010   YTD. Avg. Daily Contract 2009   Avg. Daily Contract % Change vs. 2009  
Equity Options   262,234,107   266,913,045   -2 %   14,145,555   13,471,203   5 %
Index Options   21,253,003   19,356,579   10 %   1,194,173   944,114   26 %
Total Options   283,487,110   286,269,624   -1 %   15,339,728   14,415,317   6 %
Equity Futures   407,036   266,891   53 %   21,547   9,438   128 %
Index / Other Futures   1,233,881   1,090,991   13 %   79,319   19,955   297 %
Options on Futures   287   492   -42 %   22   19   16 %
Total Futures   1,641,204   1,358,374   21 %   100,888   29,412   243 %
Total Volume   285,128,314   287,627,998   -1 %   15,440,615   14,444,729   7 %

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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