ELI5: Explain Like I'm 5

options clearing corporation

The Options Clearing Corporation (OCC) is like a referee in a sports game. It makes sure that all of the trades that happen in the stock market happen fairly and accurately. When someone buys or sells an option, it is the OCC's job to make sure that everything is done correctly. The OCC also makes sure that any profits or losses from the trade are shared between the buyer and seller as they should be. The OCC also makes sure that no one is cheating or taking advantage of anyone else in the market.