The Options Clearing Corporation (OCC) is a central clearinghouse for options and futures contracts in the United States. It acts as an intermediary between buyers and sellers, ensuring that trades are settled efficiently and reducing the risk of default. By guaranteeing the performance of options contracts, the OCC helps maintain stability in the financial markets. Founded in 1973, the OCC plays a crucial role in the derivatives market. It is responsible for managing the clearing and settlement process, which includes the collection of margin requirements and the distribution of profits and losses. This helps protect investors and promotes confidence in trading activities involving options and futures.