Chapter 04 · Section 4.1

Financial Integrity

• Assures the financial integrity of the market.
• Matches trades and facilitates the flow and transfer of funds.
• Provides a mechanism for delivery or cash settlement.

a) the correct functioning of the trading process.
b) a fair trading environment.
c) the repayment of all option premiums upon maturity.
• d) the protection of clearing members against the default of a counterpart to their positions.
  Yes. In any contract, there is a risk of counterparty default. In the case of futures and options, this risk is greatly reduced thanks to the clearing and margin system. Continue

(Click here for help)