The role of the clearinghouse is to:
A) Interpose itself as the buyer to every sale and the seller to every purchase.
B) Guarantee fulfillment of the futures contract on the settlement date.
C) Make it simple for parties to unwind their positions prior to the settlement date.
D) All of the above.
E) b and c only.

Question

Quizplus · Accepted Answer

The role of the clearinghouse encompasses all the functions listed: acting as the counterparty to both sides of a trade (A), ensuring the fulfillment of contracts (B), and facilitating the process for parties to exit their positions before the contract settles (C).

The Role of the Clearinghouse Is To