n NISM Certifications
VII NISM Series VII
Medium

Which procedure is adopted to determine the net settlement obligations (delivery/receipt positions) of clearing members?

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

Options

  1. A

    Auto Netting

  2. B

    Pay-in

  3. Multilateral Netting

    Correct answer

  4. D

    Novation

Why this is the answer

The clearing agency confirms trading transactions of members and then calculates net obligations through multilateral netting to simplify settlements.

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