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What role does the clearing house play in Marking to Market ?

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What role does the clearing house play in Marking to Market ?
posted Jul 4, 2017 by Diya Borda

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A clearing house is an intermediary between buyers and sellers of financial instruments. Further, it is an agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery, and reporting trading data. Clearing houses act as third parties to all futures and options contracts, as buyers to every clearing member seller, and as sellers to every clearing member buyer.

answer Jul 4, 2017 by Purabi Sarkar
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