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The Options Clearing Corporation Announces 30% Increase in Cleared Contracts for Record Volume Month in May

CHICAGO (June 1, 2010) The Options Clearing Corporation (OCC) announced today that total OCC volume reached 408,432,157 contracts in May, representing a 29.56% percent increase over the May 2009 volume of 315,257,294 contracts. This marks the first time total cleared volume in a month surpassed 400 million contracts, and is higher than the annual total of 406 million contracts cleared in 1998. OCC year to date total volume is up 13.44% with 1,702,977,298 contracts.

Options: Exchange-listed options trading increased 29% over May 2009 and set a monthly trading record 8% higher than the previous record set in October 2008. Index options trading rose 89% from the previous May. Average daily trading volume for the month was 20,293,001 and the highest volume trading day was recorded on May 6 when 30,818,984 contracts changed hands. Three of the five highest volume days occurred during the month.

Futures: Futures cleared by OCC in May continued to rise as 2,572,130 contracts were cleared with an average daily contract volume of 128,607. Total year to date futures volume is 11.4 million contracts, 1 million contracts less than the total number of futures contracts OCC cleared in 2009.

Securities Lending: OCC's stock loan program, including OTC and AQS, saw an average daily notional value of $12,735,201,333, a 6% percent decrease from April's average open interest. The past year has seen a trend to increasing average daily stock loan transactions, including a 4% increase from April to May despite the decline in notional value—which is related to May's stock market decline. As OCC expanded its stock loan program last year, it also changed the program measurement process. Therefore, precise year-on-year data will not be available until mid-year.

 
May 2010 Total Contract Volume
May 2009 Total Contract Volume
May Total Contract % Change vs. 2009
YTD. Avg. Daily Contract 2010
YTD. Avg. Daily Contract 2009
Avg. Daily Contract % Change vs. 2009
Equity Options
370,448,465
296,098,407
25.11%
15,271,671
13,738,376
11.16%
Index Options
35,411,562
18,700,631
89.36%
1,312,782
964,174
36.16%
Total Options
405,860,027
314,799,038
28.93%
16,584,454
14,702,551
12.80%
Equity Futures
530,110
107,919
391.21%
20,903
6,910
202.50%
Index / Other Futures
2,041,744
349,920
483.49%
90,474
8,249
996.79%
Options on Futures
276
417
-33.81%
25
11
127.27%
Total Futures
2,572,130
458,256
461.29%
111,402
15,170
634.36%
Total Volume
408,432,157
315,257,294
29.56%
16,695,856
14,717,721
13.44%

About OCC

OCC is the world's largest derivatives clearing organization by contract volume and open interest. Founded in 1973, OCC operates under the jurisdiction of both the Securities and Exchange Commission (SEC) as a Registered Clearing Agency and the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organization. OCC now provides central counterparty (CCP) clearing and settlement services to 14 exchanges and platforms for options, financial and commodity futures, security futures and securities lending transactions.

As the CCP clearinghouse for the markets it serves, OCC assumes the counterparty risk of members involved in a trade-becoming the buyer to every seller and the seller to every buyer. OCC manages its risk of member default by collecting margin (collateral). Clearing member margin requirements are calculated using OCC's proprietary System for Theoretical Analysis and Numerical Simulations (STANS) that uses large-scale Monte Carlo simulations to forecast price moves and correlations to make those margin determinations. In 1993, OCC became the first clearinghouse to receive a 'AAA' credit rating from Standard & Poor's Corporation, and has continued to receive that high rating every year as a result of its risk management standards.

OCC operates as a utility clearinghouse, owned by several of its participant exchanges but with a Board of Directors majority drawn from its clearing members, allowing it to provide highly efficient but low-cost solutions to the markets it serves. More information about OCC is available through its Web site at www.optionsclearing.com.