In which market does a clearinghouse serve as a third party to all transactions?
A)Futures
B)Forwards
C)Swaps
D)none of the options

Question

Quizplus · Accepted Answer

In the futures market, a clearinghouse acts as a third-party intermediary that guarantees all trades. This means that the clearinghouse becomes the buyer to every seller and the seller to every buyer. This guarantees that all parties involved in a trade can fulfill their obligations.

In Which Market Does a Clearinghouse Serve as a Third