Options Clearing Corporation Assignment Procedure

What this video covers

• The three assignment layers: the exchange submits matched trades, the OCC assigns the exercise notice to a clearing member, and the clearing member allocates it to a customer
• Why the exchange assumes no responsibility for unmatched trades or delays and errors in reported trade information
• When an exercise assignment occurs: at or before 8:00 a.m. Central Time (CT) on the following business day, while the assignment is dated and effective as of the notice acceptance date
• How the partial assignment wheel works, including the random starting point, calculated skip interval, decimal carryover, and 25-contract increments
• The difference between fixed allocation procedures for standard options and specific customer identifiers for over-the-counter (OTC) options
• Why an option that is in the money against the closing price by one cent or more is automatically and irrevocably tendered unless a contrary instruction applies
• How collection timing and call-versus-put duties change between a customer exercise and an assignment, including promptly as possible versus promptly as practicable