Exclusive: Wall Street examines risks around short-dated options as warnings rise

The Futures Industry Association , a trade group that includes major Wall Street players as well as the OCC as members, invited OCC to participate in a call about 0DTE at a meeting on March 1, both the OCC and FIA confirmed. Members of the FIA"We are following the rise in volumes in these products to better understand any risk management implications for the markets and continue to have an open dialogue with our members," the OCC spokesperson said.

An FIA spokesperson said that 0DTE was one of the topics discussed last week, describing the call as routine. On one of the calls, the source said that participants were exploring potential systemic risk, including if prime brokers would be able to detect clients' total exposure. The OCC told this person it did not see a major risk, but it wanted to assess its members' views and explore different risk scenarios.

The calls with the OCC underscore a desire by options market participants to gain a deeper understanding of a corner of the market where both retail and institutional players are looking to profit from intraday market moves.

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