The Options Clearing Corporation (OCC) refunded $47,430,086 to clearing members for 2004.
OCC annually provides its clearing members with a clearing fee refund once OCC operational expenses are met. For the years ended Dec. 31, 2003, 2002 and 2001, this refund amounted to $33.1 million, $14.1 million and $26.7 million, respectively. OCC’s cumulative refunds and discounts since 1974 total more than $385.8 million.
In addition to the refund, OCC has also extended indefinitely the clearing fee reductions introduced last year. These reductions can save clearing members over 12% on clearing fees, depending on the size of the trade.
Reductions are based on a clearing fee schedule originally implemented in April 2004, which initially saved clearing members up to nine percent on fees. The discount was most notable for trades between one and 500 contracts, which account for approximately 75% of OCC’s cleared trades. In July 2004, OCC announced additional reductions, bringing the total discount to more than 12% through year-end, now extended indefinitely. In 2004, a total of $12,262,175 in fee reductions was returned to clearing members.