Clearing Member Trade Agreement (CMTA)

Definition:

An agreement that allows a client to execute derivative trades through different brokers yet consolidate positions for clearing purposes at one brokerage firm.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Trade credit

Credit one firm grants to another firm for the purchase of goods or services. That is, when the goods are delivered, the recipient does not have to pay immediately for the goods - a credit is given... Read More

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