OCC overhauls legacy clearing system with Cinnober

The Options Clearing Corporation will replace its current clearing system with the help of Cinnober.  

The Options Clearing Corporation (OCC) has said that it will replace its legacy clearing system with Cinnober’s TRADExpress RealTime Clearing system.

The upgrade will see the OCC’s clearing system provide users with better data submission and reporting functionality, as well as other benefits such as improved control mechanisms, futures processing and product support.

“Following a lengthy and rigorous analysis, we decided to pair our internal work with the adoption of the TRADExpress RealTime Clearing solution,” said John Davidson, chief operating officer at the OCC.

“The new systems will deliver many advantages to our participating exchanges and clearing firms in a modern and flexible technology architecture, including enhanced functionality to procure and submit data to and from the system for external and internal users, enhanced ad-hoc reporting capabilities, enhanced control mechanisms, expanded new product support capabilities, improved futures processing, and greater flexibility in processing clearing member trade agreements.”

Peter Lenardos, CEO of Cinnober, added that the TRADExpress Real Time Clearing system will support the OCC’s efforts to improve business development and time-to-market for new products across the markets they clear.

Cinnober was recently acquired by Nasdaq for $220 million, after increasing its initial bid of around $190 million made in September. A majority of shareholders at Cinnober have approved the new offer, and settlement of the deal is expected to begin on 6 February.

Lars Ottersgard, head of market technology at Nasdaq, told The TRADE at the time the deal was announced that Cinnober has common capabilities as the exchange in many spaces and that Nasdaq’s most significant inhibitor for growth has been capacity to support clients.

“We have had good traction for many years for market technology, which has been growing steadily through the years. We have seen an uptake in interest in our capabilities to deliver solutions both to the wider capital markets and into new marketplaces,” Ottersgard added.