derivatives clearing organization

Definition of "derivatives clearing organization"
  1. An entity that allows substitution of its credit for contract parties, organizes settlement or netting of obligations from contracts on a shared basis, or offers services for the mutual transfer of credit risk arising from contracts among its members
How to use "derivatives clearing organization" in a sentence
  1. The derivatives clearing organization facilitates credit substitution for traders.
  2. Financial institutions use the derivatives clearing organization to manage credit risk from contracts.
  3. To mitigate credit risks, investors employ the services of the derivatives clearing organization.

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