In the early 1970s, there was a need for a centralised agency to guarantee the performance and settlement of option contracts. This gave rise to the Options Clearing Corporation. By 1974, with the establishment of the Chicago Board Of Exchange by the Chicago Board Of Trade, the average trading daily volume of option contracts increased to more than 200,000 contracts. From there, options trading began to find interest amongst traders and investors and financial institutions such as the banks and insurance companies.
Read : The Role Of OCC