Establishment of The Options Clearing Corporation

OCC

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.

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  • History of Options Trading The history of options trading can be segmented in different periods. Options trading was never an a newly invented concept in the early 1900’s. In fact it began way back...
  • The Standardisation Of Option Contracts   By the 1960’s and 1970’s although options trading became more popular as when compared to the 1930s and before, options trading still did not take off quite as expected....
  • Regulation of Options Trading Eventually, the role of governing and regulating the trading of options fell into the hands of the SEC. It was then that options contracts started to become legitimate.  An investment...
  • Trading Of Put Options Began In 1977 By 1976, options trading was already an acceptable way to trade and invest. But, options trading only took place around call options till then. By 1977, additional regulations were promulgated...