Core Viewpoint - The US options market is experiencing record volumes, but there are concerns about its reliance on a small number of banks for trade guarantees, which could pose risks to market stability [1][3]. Group 1: Market Structure - The Options Clearing Corp. (OCC) processes over 70 million contracts daily during peak periods, acting as a central counterparty for all listed US options trades [2]. - A small group of firms dominates the market, with the top five contributing nearly half of the OCC's default fund in Q2 2025, raising concerns about concentration risk [3]. Group 2: Risk Factors - Craig Donohue, CEO of Cboe Global Markets, expressed concerns about significant concentration risk in clearing intermediation, indicating potential vulnerabilities in the system [4]. - Although the likelihood of a major bank failure is low, the industry has experienced defaults in the past, such as the bankruptcy of MF Global in 2011 [5]. Group 3: Market Dynamics - The OCC reported a 52% increase in average daily volume in October compared to the previous year, leading to market makers increasingly opting for self-clearing, which introduces additional risks due to their lower capital levels [6]. - Only a few clearing brokers can cross-margin between futures and options, which can help reduce margin requirements by offsetting related positions [8].