20 The Options Clearing Corporation Interview Questions and Answers

The Options Clearing Corporation (OCC) is the world’s largest equity derivatives clearing organization. OCC provides clearing and settlement services for options on equities, indexes, and futures, as well as for security futures products.

If you’re interviewing for a job at OCC, you can expect to be asked a variety of questions about your experience, qualifications, and knowledge of the financial industry. To help you prepare, we’ve gathered a list of sample OCC interview questions and answers.

The Options Clearing Corporation Interview Process

The Options Clearing Corporation (OCC) has a very extensive interview process. Candidates can expect to have several interviews, both in person and over the phone, with various members of the OCC team. The interview difficulty varies depending on the position being applied for, but overall the interview process is quite challenging. Many candidates report feeling extremely stressed during the interview process and some even say that they were made to feel like they were not qualified for the job.

1. What do you know about our company?

The Options Clearing Corporation is a large financial institution that provides clearing and settlement services for the options market. The company has been in business since 1973, and it’s headquartered in Chicago, Illinois. It also has offices in New York City, London and Atlanta.

The interviewer may ask this question to see if you have done your research on their organization. To answer this question effectively, make sure you know about the history of the company, its current products and services and any recent news or developments.

Example: “I’ve heard of the Options Clearing Corporation before, but I didn’t realize how long it had been in business until I did some more research. I’m impressed by the longevity of the company, as well as its international presence. I think my skills would be an excellent fit for this role.”

2. Why are you interested in working here?

This question is a great way for the interviewer to learn more about your background and why you are interested in working at their company. Use this opportunity to show that you have done some research on the organization, including its mission statement and values. You can also mention any personal connections you may have with people who work there or other reasons you want to be part of the team.

Example: “I am very passionate about financial markets and how they operate. I believe The Options Clearing Corporation is an important institution because it helps protect investors from fraud and ensures that all trades are executed properly. I would love to be a part of such an innovative company that is making strides in the industry.”

3. How would your past experience help you with this role?

The interviewer may ask this question to learn more about your background and how it relates to the role. Use your answer to highlight a skill you have that can help you succeed in this position.

Example: “In my past role as an options trader, I had to make quick decisions based on market conditions. This experience has helped me develop my ability to think critically under pressure and act quickly when necessary. These skills are important for success at The Options Clearing Corporation because they allow me to meet customer needs while also ensuring the company is operating efficiently.”

4. Do you have any experience dealing with financial markets?

The interviewer may ask this question to learn more about your experience with the financial markets and how it relates to the role. If you have relevant experience, share what you did in that position and how it helped prepare you for this interview.

Example: “I worked as a stock trader at my previous company where I was responsible for buying and selling stocks on behalf of clients. My job required me to keep up-to-date on current market trends so I could make informed decisions when trading stocks. This experience has given me valuable insight into the financial markets and how they work.”

5. Tell me about a time when you were faced with an ethical dilemma and how you handled it.

The interviewer may ask this question to assess your moral compass and how you make decisions that affect the lives of others. In your answer, try to demonstrate your commitment to ethical behavior and highlight a specific example from your past.

Example: “I once worked with an investor who was looking for ways to increase his portfolio’s value without taking on too much risk. I suggested he invest in some options contracts because they allow investors to place bets on whether or not something will happen by a certain date. He agreed, but then asked me if there were any other ways he could increase his profits. I explained that while it is illegal to manipulate the market, there are ways to do so through options contracts. I told him that although it would be unethical, it would also be profitable.”

6. Describe the process of how stocks are traded.

The interviewer may ask this question to see if you understand the process of how stocks are traded and what happens when they’re sold. This is a basic question that many interviewers might ask, so it’s important to be prepared with an answer that shows your understanding of the process while also showing that you can explain it in simple terms.

Example: “When I trade stocks, I first need to find a broker who will allow me to buy or sell options on their platform. Once I’ve found one, I’ll open an account and deposit funds into my account. Then, I’ll place an order for the stock I want to purchase. The broker then places the order with the Options Clearing Corporation, which matches buyers and sellers. After that, the seller delivers the shares to the buyer.”

7. Have you ever worked on a team project where there was conflict, how did you handle it?

The interviewer may ask this question to learn more about your conflict resolution skills. This is an important skill for working in a team environment, and it can also help the interviewer determine if you would be able to work with their company’s current employees. In your answer, try to explain how you resolved the conflict and what steps you took to ensure that similar conflicts do not occur again.

Example: “In my last position as a financial analyst, I was tasked with creating a new budget for our department. My supervisor had given me some guidelines, but he wanted us to come up with the final numbers ourselves. One of my coworkers disagreed with my methods and thought we should use different ones. We talked through our disagreements, and I explained why I felt my method was better. He agreed with my reasoning and used my method when creating his own budget.”

8. Can you tell us about a recent news story related to finance that caught your interest?

The interviewer may ask this question to gauge your interest in current financial news and how you might use that information to benefit the company. To answer, think of a recent news story related to finance or economics that caught your attention. Explain why it was interesting to you and what you learned from it.

Example: “I recently read about a new bill being proposed by Senator John McCain that would require companies with more than 500 employees to give their employees at least seven days of paid leave per year for family care. I find this idea very interesting because I believe it could help many families who struggle to balance work and home life. However, I’m not sure if it’s feasible for all businesses to implement.”

9. What is your favorite part about working in finance?

This question is a great way to learn more about the candidate’s interests and passions. It can also help you determine if they are a good fit for the role, as it shows what they value in their work. When answering this question, try to focus on aspects of finance that relate to your job at OCC.

Example: “My favorite part about working in finance is helping people achieve their financial goals. I love being able to use my skills to create solutions for clients who need them. At my last job, I helped a client plan out an investment strategy that would allow them to retire early. They were so grateful for my help, and it made me feel like I was making a real difference.”

10. Are you familiar with options trading?

The interviewer may ask this question to see if you have experience with options trading. If you are not familiar with options, you can explain that you’re eager to learn more about the process and how it works. You can also mention any relevant skills or knowledge you already have in regards to options trading.

Example: “I’ve done some research on options trading but I’m still learning about the process. I understand that there are many factors involved when trading options, including strike price, expiration date and volatility. I am excited to learn more about the industry and apply my knowledge of options trading to this role.”

11. What are some of the business risks involved with equity derivatives?

Options clearing corporations are responsible for managing the risks associated with derivatives. The interviewer may ask you this question to see if you understand how derivatives work and what can go wrong when using them. Use your answer to explain some of the risks involved with equity derivatives, as well as how an options clearing corporation manages these risks.

Example: “Equity derivatives have a lot of risk because they’re based on the value of stocks. If the stock’s price goes down, then the derivative will also lose its value. There are several ways that OCCs manage this risk. For example, they might require traders to put up collateral in case their stocks decrease in value. They also use complex mathematical models to determine the probability of different outcomes.”

12. If you were hired for this position, what would be your plan of action?

This question is a great way to see how the candidate plans and prioritizes their work. It also shows you what they think are important aspects of this role. When answering, it’s best to be specific about your plan of action and include any steps or processes that you would implement.

Example: “I would start by learning as much as I can about the position and company. Then, I would begin implementing my own systems for tracking and reporting trades. I would also make sure to communicate with all employees so everyone understands the new procedures.”

13. Where do you see yourself in 5 years?

This question is a common one in interviews, and it’s often asked to see if you have career goals. When answering this question, be honest about your future plans but also emphasize that you are willing to stay with the company for several years.

Example: “I plan on staying in my current position for at least five years. I am excited to learn more about the industry and how the OCC operates. In five years, I hope to have earned a promotion and developed my skills as an options trader.”

14. Are you comfortable with managing people?

The interviewer may ask this question to determine if you have experience managing a team. If you do, they may want to know how you did it and what your results were. If you don’t have management experience, you can talk about any leadership roles you’ve had in the past.

Example: “I have managed teams before, but I prefer to lead by example rather than giving orders. In my last role as an options trader, I was responsible for hiring new employees. I would look at resumes and cover letters and then interview candidates. After making sure that they understood our company culture, I would hire them based on their personality and skills.”

15. Tell me about a time you had to deal with difficult clients or customers.

The interviewer may ask this question to learn more about your customer service skills. Use examples from previous jobs or experiences that highlight your ability to communicate with others and resolve conflict.

Example: “In my last position, I had a client who was very upset because they lost money in their account. They were yelling at me on the phone and demanding answers as to why it happened. I remained calm and explained that there are many factors that can affect an investment’s performance. I also offered to help them find another broker if they wanted to move their funds elsewhere.”

16. We want our employees to be able to work independently. Would you say you are someone who can work independently?

The interviewer may ask this question to see if you are comfortable working independently. This is because the job requires a lot of independent work, such as entering data and calculating numbers. Your answer should show that you can be productive without much supervision.

Example: “I am someone who thrives when I have independence in my work. In fact, I find it motivating to know that I will be doing most of the work myself. I feel like I am more productive when I don’t need constant feedback from others. However, I also understand that there are times when I need help or guidance. When I do, I am always willing to ask for assistance.”

17. Explain the difference between fundamental analysis and technical analysis.

The interviewer may ask this question to assess your knowledge of the two most common types of analysis. You can use examples from your experience to explain how each type works and what its benefits are.

Example: “Fundamental analysis is a method that uses financial data, such as company earnings reports or economic indicators, to predict future price movements in an asset. It’s based on the idea that if you understand why something has value, you’ll be able to make better investment decisions. Technical analysis, on the other hand, focuses on analyzing market trends and patterns to determine when it’s best to buy or sell assets.”

18. How do you think technology has changed the financial industry?

The interviewer may ask this question to see how you feel about the role technology plays in your industry. Use your answer to highlight any specific skills or knowledge that helped you use technology to advance your career.

Example: “Technology has changed the financial industry by making it easier for investors and traders to access information, execute trades and manage their portfolios. I think it’s important to have a strong understanding of both finance and technology because they’re so interconnected. In my last position, I used my technical skills to automate many of the processes involved with trading options contracts. This allowed me to focus on more complex tasks like analyzing market trends.”

19. What kind of tools do you use to stay up to date with market trends?

The interviewer may ask this question to see if you have the ability to learn new things and adapt to different situations. This is because working at OCC requires employees to be able to quickly understand market trends, which can change frequently. Your answer should show that you are willing to learn new skills and technologies.

Example: “I use several tools to stay up-to-date with market trends. I subscribe to a few financial newsletters that provide me with information about current events in the stock market. I also use an app on my phone that allows me to track stocks and other investments. Finally, I am always open to learning more about investing and how it relates to the market.”

20. What are some of the challenges facing the clearinghouse industry?

The interviewer may ask this question to gauge your knowledge of the industry and how you might approach challenges that arise. Use examples from your previous experience or research about common issues in the clearinghouse industry to highlight your problem-solving skills.

Example: “The biggest challenge facing the options clearinghouse industry is fraud, which can be committed by both customers and employees. In my last role as a compliance officer for an options exchange, I developed a training program to help new hires identify fraudulent activity. This helped reduce instances of employee fraud by 50% over the course of two years.”