Clearing houses are
A) Never used in futures markets and sometimes used in OTC markets
B) Used in OTC markets, but not in futures markets
C) Sometimes used in both futures markets and OTC markets
D) Always used in both futures markets and OTC markets

Question

Quizplus · Accepted Answer

Clearing houses are commonly used in both futures markets and OTC markets to facilitate the settlement of trades and manage counterparty risk. While they are not required in all cases, they are an important component of many financial markets.

Clearing Houses Are