SOURCE: The Options Clearing Corporation

September 04, 2007 16:49 ET

The Options Clearing Corporation Reduces Clearing Fees to 2 Cents per Contract

CHICAGO, IL--(Marketwire - September 4, 2007) - The Options Clearing Corporation (OCC) announced that new discounts to its standard fee schedule are now in effect, lowering the clearing fee to 2 cents per contract for most transactions.

The new discounted fee schedule took effect September 1 and will remain in place through the end of 2007. OCC annually refunds all revenues in excess of operational expenses. Options trading volume is on pace to surpass last year's total later this month and the greater volume has generated revenue beyond expected budgetary needs.

"In addition to the dynamic volume growth this year, this discount also reflects OCC's commitment to the industry to contain costs," said Michael Cahill, OCC President and Chief Operating Officer. "OCC is proud to offer the lowest clearing fee in the world while maintaining the highest standard in risk management and processing efficiency."

Along with the discounted fee schedule -- outlined below -- OCC has converted the CBOE Futures Exchange (CFE) to the standard, rebate-eligible fee schedule and eliminated the alternative fee schedule offered to futures markets. This puts CFE on the fee schedule used for OneChicago and the Philadelphia Board of Trade, the other two futures markets OCC clears. OCC cleared futures contracts have increased about 33 percent over the same period last year.

Contracts/Trade   Current Permanent    Discounted Standard    Discounted
                    Standard Fee          Fee Schedule,        Standard
                 Schedule, Effective  Effective May 1, 2007  Fee Schedule,
                     May 1, 2007                               Effective
                                                              September 1,
                                                                 2007
1-500               $0.05/contract       $0.035/contract    $0.02/contract
501-1,000           $0.04/contract       $0.028/contract    $0.016/contract
1,001-2,000         $0.03/contract       $0.021/contract    $15.00 (capped)
>2,000              $55.00 (capped)      $35.00 (capped)    $15.00 (capped)

OCC Background

OCC, founded in 1973, is the world's largest derivatives clearing organization and was the first clearinghouse to receive a 'AAA' credit rating from Standard & Poor's Corporation. Operating under the jurisdiction of the Securities and Exchange Commission and the Commodity Futures Trading Commission, OCC provides clearing and settlement services for the American Stock Exchange, the Boston Options Exchange, Chicago Board Options Exchange, CBOE Futures Exchange, International Securities Exchange, OneChicago, NYSE Arca, Philadelphia Stock Exchange and Philadelphia Board of Trade. More information about OCC is available through its Web site at www.optionsclearing.com.

Contact Information