Your acceptance of all cookies will permit robust site functionality. If you don't allow cookies, some features and functionality of OCC's site may not operate as expected. If you do not choose either cookie setting for our site, or if you close this window, this message will continue to display on each page you visit. Cookie settings can be controlled in your Internet browser to automatically reject some forms of cookies. For more details on cookies this site uses, see our OCC Site Cookies page. In addition to using cookies, we retain other information, including your Internet Protocol (IP) address, for the purposes listed in the Privacy Policy.

Comments Regarding Code Sections 871(m) and 1441

In its role as the foundation for secure markets, OCC submitted a letter to the IRS and Treasury commenting on proposed regulations issued under Code sections 871(m) and 1441 relating to the exemption from withholding tax for dividend equivalents paid to qualified derivatives dealers (QDD). The letter requests that the concept of a QDD be modified so that it also applies when a Canadian clearing member is engaged in principal trading solely on behalf of the firm. The letter also requests clarification regarding an issue that could cause such members to face potential excessive withholding tax under the proposed regulations.

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]).