Clearing Member Trade Agreement - CMTA

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DEFINITION of '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.

BREAKING DOWN 'Clearing Member Trade Agreement - CMTA'

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.

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RELATED FAQS
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