US Options Market Grapples With ‘Concentration Risk’ in Clearing
Market Intelligence Analysis
AI-PoweredThe US options market is facing a risk of concentration due to the central clearing mechanism, where a single entity, The Options Clearing Corp., handles a significant number of trades, and its members act as guarantors for their clients.
Market impact analysis based on neutral sentiment with 78% confidence.
Article Context
Every listed US options trade goes through The Options Clearing Corp., a central counterparty that handles more than 70 million contracts a day during busy periods. The trades are submitted to the OCC by its members — who help trades get to the clearing house and act as guarantors in case their clients go bust.
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