Clearing Member Trade Agreement - CMTA

Clearing Member Trade Agreement - CMTA

An agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing.

Notes:

When the position is consolidated, some brokers will 'give up' their position to the clearing firm. The positions should be cleared through the Options Clearing Corporation.

See also: Broker, Clearing, Clearing House, Derivative, Futures, Give Up, National Securities Clearing Corporation - NSCC, Options Clearing Corporation - OCC