n NISM Certifications
XIII NISM Series XIII
Medium

What is the name of the process through which the Clearing Corporation becomes the legal counterparty to every trade on the exchange?

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

Options

  1. Novation

    Correct answer

  2. B

    Replacement

  3. C

    Trade Guarantee

  4. D

    Substitution

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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