The OCC & the ODD
The Options Clearing Corporation issues, guarantees, and clears all listed options, eliminating counterparty risk; the Options Disclosure Document (ODD) must be delivered to customers at or before account approval for options trading.
The OCC is the issuer of every listed option, which is why a buyer never worries about the writer’s credit. The ODD (‘Characteristics and Risks of Standardized Options’) is the standardized risk disclosure — options-specific suitability is screened before any trade is allowed.