Clearing Member Trade Agreement - CMTA

Clearing Member Trade Agreement - CMTA
An agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing.

When the position is consolidated, some brokers will 'give up' their position to the clearing firm. The positions should be cleared through the Options Clearing Corporation.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Clearing Member Trade Agreement — ( CMTA) An agreement that allows a client to execute derivative trade through different brokers yet consolidate positions for clearing purposes at one brokerage firm. Bloomberg Financial Dictionary …   Financial and business terms

  • CMTA — See: Clearing Member Trade Agreement …   Financial and business terms

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