On behalf of our colleagues in Chicago, Dallas and Washington, D.C., we are pleased to
report that in 2018, OCC continued to provide world-class risk management, clearance and
settlement services to the users of the U.S. equity options and futures markets. We did this
while also furthering our culture, compliance posture, and technology transformation to
better serve our stakeholders and the users of the markets we serve.
OCC is always focused on flawless execution and in delivering operational and capital efficiencies to
participating exchanges and clearing firms in our role as a Systemically Important Financial Market
(SIFMU). In 2018, we cleared 5.24 billion total contracts, which was up 21 percent from 2017 and the
highest industry total since 2011. This reflects the stability and integrity of our services. Cleared
exchange-listed options volume grew 22.6 percent from 2017 to 5.14 billion contracts, and we experienced
strong growth in exchange-listed options, equity options, ETF options, index options, and OCC’s
lending transaction activity.
Since 2014, our focus has been on executing the first phase of our transformation strategy; enhancing
resiliency and securing our foundation. In our role as a SIFMU, OCC had to transform to meet the
demands of a new regulatory environment. We needed to solidify our financial and capital resources, and
we had to focus on developing and retaining a strong leadership team.
Due to the substantial changes we implemented in 2018, OCC now has a clearing fund that is based on a
wide range of stress test scenarios. With this change we also expanded our coverage to allow OCC to
withstand the simultaneous default of our two largest clearing firms, rather than our single largest.
This goes above and beyond U.S. regulatory requirements and positions OCC well for the future.