derivatives clearing organization
- 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
- The derivatives clearing organization facilitates credit substitution for traders.
- Financial institutions use the derivatives clearing organization to manage credit risk from contracts.
- To mitigate credit risks, investors employ the services of the derivatives clearing organization.
Provide Feedback
