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OTC Products

In 2014, OCC began offering clearing services for OTC products on S&P 500® index options. Transactions are transmitted to OCC via an approved OTC Trade Source and are guaranteed by OCC through a similar novation process as other OCC cleared products.

OTC options must be negotiated and matched OTC (not transacted on an exchange or exchange-like market). Clearing member clients must be eligible contract participants.

SEC No-Action

Following is a "no-action" letter from the SEC to OCC with respect to cleared OTC options and Exchange Act Rules 15c3-1 and 15c3-1(a). OCC received no-action relief from the SEC to permit OTC options to be treated the same as other listed options for purposes of Rule15c3-1, enabling broker dealers to use an approved theoretical options pricing model to calculate capital charges for positions in OTC options and market makers to trade in OTC options without making themselves ineligible for capital treatment.

In addition, the minimum capital charge for each OTC option under SEC Rule 15c3-1 will be $0.75, adjusted as appropriate for the size of the OTC option, not to exceed the market value in the case of long contracts in OTC options.

Request for No-Action Relief with Respect to Cleared Over-the-Counter Options for Purposes of Rules 15c3-1 and 15c3-1a (PDF)

Product Specifications

OTC S&P 500 Equity Index®

Auction Procedures

For auctions that include OTC options products, please refer to the following procedures: Auction Procedures (PDF)

This web site discusses exchange-traded options issued by The Options Clearing Corporation. No statement in this web site is to be construed as an endorsement, recommendation or solicitation to purchase or sell a security, or to provide investment advice. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of the disclosure document, Characteristics and Risks of Standardized Options. Individuals should not enter into option transactions until they have read and understood this document. To obtain copies, contact your broker, any exchange on which options are traded, or The Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 ([email protected]).