CoboCards App FAQ & Wishes Feedback
Language: English Language
Sign up for free  Login

This flashcard is just one of a free flashcard set. See all flashcards!

All main topics / Finance & Investment / Derivatives / Derivatives
Which of the following best describes central clearing parties
A.Help market participants to value derivative transactions
B.Must be used for all OTC derivative transactions
C.Are used for futures transactions
D.Perform a similar function to exchange clearing houses

Answer: D

CCPs do for the OTC market what exchange clearing houses do for the exchange-traded market. The correct answer is therefore D. CCPs must be used for most standard OTC derivatives transactions, but not for all derivatives transactions.
New comment
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




Forgot password?
Deutsch  English