Options Clearing Corporation - OCC

A clearing organization that acts as both the issuer and guarantor for option and futures contracts.

Investopedia Says:
The Options Clearing Corporation is regulated by both the SEC and the CFTC.

The OCC is the largest clearing organization in the world and is owned equally by the American Stock Exchange (AMEX), Chicago Board Options Exchange (CBOE), International Securities Exchange (ISE), Pacific Exchange, and the Philadelphia Stock Exchange (PHLX).

Related Links:
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
These contracts allow for easier shorting, and provide more leverage and flexibility than stocks. Surveying Single Stock Futures

The largest clearing organization in the world for financial derivative instruments. OCC issues, guarantees, and clears options on underlying financial assets including common stocks, foreign exchange, stock indices, U.S. Treasury securities, and interest rate composites. As the issuer and guarantor of every options contract executed on every securities options exchange in the United States, OCC serves as the counter party for all transactions. OCC's ability to meet its obligations arising from its options contracts earned it an AAA rating by Standard & Poor's Corporation. OCC is the only securities clearinghouse in the world to receive this accreditation. Its options disclosure document, "Characteristics and Risks of Standardized Options," is required reading for all investors prior to trading options. OCC is owned by all but one of the U.S. Exchanges that trade options. www.optionsclearing.com. See also Option.