Clearing Member Trade Agreement - CMTA

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Dictionary Says

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.
Investopedia Says

Investopedia explains '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 Definitions

  1. Broker

    1. An individual ...
  2. Clearing

    The procedure by ...
  3. Clearing House

    An agency or ...
  4. Derivative

    A security whose ...
  5. Futures

    A financial ...
  6. Give Up

    A procedure in ...
  7. National Securities Clearing ...

    A subsidiary of ...
  8. Options Clearing Corporation - OCC

    An organization ...
  9. Volatility

    1. A statistical ...
  10. Risk Capital

    Investment funds ...

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