Chapter 04 · Section 4.1

Contractual Counterpart

The clearing house does not write a guarantee for every option position on the exchange. As soon as a trade is cleared, the clearing house becomes the contractual counterpart of:

• a) every option holder and every option writer for their net positions;
  No. This is often said to simplify the concept of the clearing system. In fact, the clearing house only deals with the clearing members, and is formally a contractual counterpart to a clearing member.
  b) every option clearing member for the positions they carry with the clearing house.