Key facts
- The Options Clearing Corporation's default fund has grown to $23.7 billion.
- Required contributions to the fund have increased from $14 billion at the start of 2023.
- Retail brokers, with the exception of Robinhood, are opposing new allocation methods for these contributions.
- Clearing banks claim they are bearing a disproportionate share of the costs associated with increased retail options trading volumes.
The Options Clearing Corporation's default fund, a critical backstop against catastrophic losses in the options market, has seen its required contributions surge to $23.7 billion from $14 billion at the beginning of 2023. This growth is attributed to a significant increase in options trading volumes. However, this expansion has exposed a rift among market participants regarding the allocation of these increased contributions. Retail brokers, with the notable exception of Robinhood, are reportedly opposing new plans for distributing these costs. Clearing banks contend that they are disproportionately shouldering the financial burden stemming from the heightened options activity by retail traders.