8. www​.nas​daq​.com/​i​n​v​e​s​t​i​n​g​/​g​l​o​s​s​a​r​y​/​c​/​c​l​e​a​r​i​n​g​-​m​e​m​b​e​r​-​t​r​a​d​e​-​a​g​r​e​e​m​ent.  OCC does not offer the inclu­sion of an action iden­ti­fi­er for mar­ket mak­er trades, as OCC under­stands that these trades already con­tain infor­ma­tion that allows a clear­ing mem­ber to assign trades to indi­vid­ual mar­ket­mak­er accounts. See Notice of Fil­ing, 84 FR at 13076, n. 6. How­ev­er, when the time comes to exe­cute orders, the clear­ing mem­ber trad­ing agree­ment allows the investor to con­sol­i­date all orders through a bro­ker. This can also be ben­e­fi­cial for investors, as con­sol­i­da­tion makes it pos­si­ble to mon­i­tor all orders through con­sul­ta­tion with a cen­tral source instead of hav­ing to deal with sev­er­al bro­ker­age firms. In addi­tion, the act of con­sol­i­dat­ing all orders under the terms of a mem­ber clear­ing con­tract means less time and mon­ey for fees and com­mis­sions paid for the exe­cu­tion of orders. To com­ply with the terms con­tained in a Clear­ing Mem­ber Trade Agree­ment (ATCM), trades must be set­tled through Options Clear­ing Cor­po­ra­tion. The OCC is respon­si­ble for the clear­ing process of dif­fer­ent types of options trad­ing car­ried out on a num­ber of exchanges. At the same time, the OCC also reg­u­lates the list­ing of new options on the var­i­ous mar­kets. All OCC activ­i­ties are con­duct­ed in accor­dance with the rules adopt­ed by the Secu­ri­ties and Exchange Commission.

A clear­ing Mem­ber Trade Agree­ment (CMTA) refers to an agree­ment that allows an investor to enter into deriv­a­tives trans­ac­tions with dif­fer­ent bro­kers, but con­sol­i­dates those trades with a sin­gle bro­ker­age firm for clear­ing pur­pos­es. Using the CMTA. A sin­gle trad­er can ini­ti­ate trades such as options, deriv­a­tives and futures with a lim­it­ed num­ber of bro­kers, but only one of them can end trad­ing. For options trad­ing, CMTA Trades must be set­tled through Options Clear­ing Cor­po­ra­tion (OCC). The OCC sup­ports the clear­ing process of sev­er­al types of options trad­ed on many exchanges. The Secu­ri­ties and Exchange Com­mis­sion (SEC) reg­u­lates the OCC. First, the Clear­ing Mem­ber Trade Assign­ment (“CMTA”) process allows a clear­ing mem­ber to trade options in secu­ri­ties (i.e. the exporter‘s clear­ing mem­ber) to send trad­ing direct­ly through the OCC to anoth­er clear­ing mem­ber for release and set­tle­ment (i.e. the car­ry­ing clear­ing mem­ber). [5] Under the CMTA pro­ce­dure, an exec­u­tive clear­ing mem­ber may send options trans­ac­tions direct­ly to the omnibus accounts of an OCC car­ry­ing clear­ing mem­ber for set­tle­ment and set­tle­ment, with­out pro­vid­ing infor­ma­tion indi­cat­ing the spe­cif­ic accounts to which trad­ing should be assigned…

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