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:
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. Related Terms:
Broker
Clearing
Clearing House
Derivative
Futures
Give Up
National Securities Clearing Corporation - NSCC
Options Clearing Corporation - OCC |