Clearing Member Trade Agreement

Clearing Member Trade Agreement (CMTA)

An agreement that allows a client to execute derivative trades through different brokers yet consolidate positions for clearing purposes at one brokerage firm.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Clearing Member Trade Agreement

An agreement whereby an investor uses different brokers to conduct trades. However, at the end of the trading day, the investor is allowed to use a single broker to present his/her trades to a clearing house for clearing purposes. A clearing member trade agreement is used exclusively for options, futures, and other derivatives. Under the agreement, the investor is given the option of choosing among several brokers who participate in the agreement.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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