A futures clearing house is:
A) The buyer to each seller and the seller to each buyer
B) A clearing agent only
C) The self-regulatory organization for the futures exchange
D) The owner of the futures exchange

Question

Quizplus · Accepted Answer

A futures clearing house acts as the buyer to each seller and the seller to each buyer, ensuring the integrity and stability of the futures market by managing counterparty risk.

A Futures Clearing House Is