Who is responsible for deciding when new option contracts should be introduced to the market?

The Options Clearing Corporation (OCC) plays a critical role in the options market, particularly regarding the introduction and management of new option contracts. As a central clearinghouse, the OCC is responsible for facilitating the trading and settlement of options contracts. It evaluates market demand, assesses the underlying asset's liquidity, and ensures that the market has the necessary infrastructure to support new contracts.

The OCC collaborates with exchanges, but it is primarily responsible for determining when new option contracts should be introduced. This includes considerations of market liquidity, investor interest, and the overall health of the options market. By overseeing these new contracts, the OCC aims to maintain market stability and protect the interests of investors.

While regulatory bodies like the Securities and Exchange Commission (SEC) oversee the entire securities market and establish regulations, they do not decide on the specific listing of individual option contracts. The underlying security issuer and exchange market supervisors also have roles in the options market, but ultimately, it is the OCC that directly manages the addition of new options to ensure the market operates efficiently.