Chapter 27: The Role of Clearing Corporations in Listed Options Trading

In this section

• What Is a Clearing Corporation?
  A deep dive into the role and function of clearing corporations as central counterparties in listed options trading, including risk management, margin requirements, and daily settlements.
• Canadian Derivatives Clearing Corporation (CDCC)
  Discover how Canada’s central clearing counterparty for exchange-traded derivatives safeguards market integrity, enforces margin and capital rules, and manages default scenarios.
• Options Clearing Corporation (OCC)
  A practical exploration of how the OCC clears and settles exchange-listed options in the U.S. market, highlighting its role in risk management, standardization, and cross-border coordination.
• Functions of a Clearing Corporation
  Explore how clearing corporations guarantee trades, manage risk, and ensure smooth operations in listed options markets through novation, collateral management, and best practices.
• Operational Resilience & Cybersecurity in Clearing
  Explore robust cybersecurity frameworks, strategic business continuity planning, and compliance best practices that sustain operational resilience in listed options clearing.
• Default Management Procedures
  Explore how clearing corporations handle member defaults through collateral liquidation, position transfers, default funds, and regulatory oversight.