Options Clearing Corporation

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The Options Clearing Corporation (OCC)

The Options Clearing Corporation is a not-for-profit organizaition that is used to clear securities option contracts, as well as futures contracts. Without this guarantor of these types of contracts, the market for options and futures would be quite complex, speculative, and far below investment grade. Financial professionals are interested in true securities, which options are considered to be. Like all securities, their investment merit is largely comprised of their ability to be guaranteed (i.e. their legitimacy). Without the OCC, an option or future contract would be too intangible to have any investment merit.

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