n NISM Certifications
NSM General NISM
Medium

What entity acts as the guarantor for transactions in the exchange-traded derivatives market?

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Trading Member

  2. B

    Clearing Member

  3. C

    Clearing Bank

  4. None of these

    Correct answer

Why this is the answer

The clearing corporation acts as the central counterparty.

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