n NISM Certifications
VII NISM Series VII
Medium

The open position of a Clearing Member is calculated by summing up _________ clearing through them.

Practice question from NISM Series VII Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    All the proprietary and clients open positions

  2. B

    All the trading member open positions

  3. All the open position of all custodial participants and all trading members

    Correct answer

  4. D

    None of the above

Why this is the answer

A Clearing Member is responsible for settling trades and managing risk. Their open position includes the sum of all trading members’ and custodial participants’ positions clearing through them. This provides a complete view of their risk exposure.

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