Island Futures Exchange has entered an agreement with the Options Clearing Corporation (OCC) for the clearing and settlement of stock index futures trades.
Island Futures recently received approval from the Commodities Futures Trading Commission as a designated contract market.
Under terms of the agreement, OCC will provide processing, settlement and guarantee services for Island Futures contracts. It may also optimise margin offsets between futures and options through its Tims portfolio risk management system.
Matt Andresen, Island Futures president and CEO, says: "Our selection of OCC as Island Futures' clearing house allows us to work with one of the leaders in this field as we offer a new and important financial derivative product like security futures."