The Options Clearing Corporation (OCC) is the central clearinghouse for all U.S. exchange-listed equity options. Its primary role is to act as the issuer and guarantor for these contracts. Long-term Equity Anticipation Securities (LEAPS) are a specific type of standardized equity option with expiration dates longer than one year. Because LEAPS are exchange-listed options, they fall directly under the purview of products that the OCC clears, guarantees, and settles. The OCC ensures the performance of these contracts, thereby reducing counterparty risk for market participants.

A. Listed stocks are cleared through the National Securities Clearing Corporation (NSCC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC).

B. Over-the-counter bonds are primarily cleared by the Fixed Income Clearing Corporation (FICC), another subsidiary of the DTCC.

C. Exchange-traded funds (ETFs) are securities that trade like stocks and are also cleared by the National Securities Clearing Corporation (NSCC).

1. The Options Clearing Corporation (OCC). "About OCC." The OCC's official website states, "As the sole central counterparty for the U.S. exchange-listed options markets, OCC provides clearing and settlement services for... put and call options on common stocks and other equity issues..." LEAPS are a type of put and call option on equities. (Source: https://www.theocc.com/about-occ)

2. FINRA Rule 2360(a). "Options." This rule governs the trading of standardized options. Section (a)(20) defines the "Options Clearing Corporation" ("OCC") as the registered clearing agency for standardized options contracts. LEAPS are a form of standardized options. (Source: FINRA Rulebook, Rule 2360)

3. U.S. Securities and Exchange Commission (SEC). Release No. 34-90631, "Self-Regulatory Organizations; The Options Clearing Corporation; Order Approving Proposed Rule Change..." (December 11, 2020). This document details the OCC's function and repeatedly refers to its role in clearing "standardized U.S. options," which encompasses LEAPS. (See Section I, Description of the Proposed Rule Change).