notes-counterpartyRisk

OCC Options

on OCC (Options Clearing Corporation) counterparty risk:

http://quant.stackexchange.com/questions/2755/can-you-fully-hedge-an-option-in-the-presence-of-counterparty-risk

basically in 2008 they had a $3.5 billion cash fund and a $130 billion emergency fund. not that much if you ask me..

http://online.barrons.com/article/SB122246733123380367.html

http://seekingalpha.com/article/95413-lehman-the-counterparty-risk

here's their rules: http://www.optionsclearing.com/risk-management/default-rules/

OCC 2011 Annual Report - The Options Clearing Corporation www.optionsclearing.com/.../docs/.../occ_2011_annual_report.pdf

says the clearing fund is only $2.9 billion at the end of 2011! They also have 76.8 billion in margin. they have only $12million in shareholders' equity. they lost $8million in 2011! they have $50-80million in cash