www.nasdaq.com/investing/glossary/c/clearing-member-trade-agreement A CMTA is an agreement between different brokers to allow and settle the trades of all brokers involved through a single broker. As an investor can have relationships with several brokers, they can launch trades with several of them at the same time. But when it comes time to remove these trades, they can stand out with only one broker. Without the countervailing member trading agreement, the investor would make transactions with different brokers and the trades would be clear to several brokers. This can be complicated and time-consuming when it comes to closing positions. With a CMTA on site, one of the brokers will present all trades to the clearing house for settlement. www.interactivebrokers.com/en/…/clearing_member_trade_agreement.htm Such an agreement has advantages for investors, because they can monitor all orders via a central source, instead of having to check the records of several different brokerage companies. In addition, an optimized compensation system reduces commission and commission costs and saves time. A countervailing member trading agreement (CMTA) refers to an agreement that allows an investor to enter into derivatives transactions with different brokers, but consolidates these transactions with a single brokerage company for clearing purposes. Use CMTA.
A single trader can launch trades such as options, derivatives and futures with a limited number of brokerage firms, but only one company can manage trading. This agreement prevents the investor from being too close or removes each trading position with different brokers differently, instead brokers accept that traders are removed by one of them. In the consolidation process, some brokers cede their position to the clearing company or brokerage firm responsible for clearing the trade. 5. See CCO Rule 407. A “performance countervailing member” is defined in Article I, Section 1.E. (12) of the CCO`s statutes as “a compensatory member, in his own name or as a countervailing member of an importing broker authorized by an executive compensating member to carry out directly confirmed transactions that must be transferred to a particular account of the pallor member under the CMTA agreement of those countervailing members.” A “carrier countervailing member” is defined in Article I, Section 1.C.(12) of the CCO Statutes, as “a compensatory member who has authorized a member of the enforcement body to direct the transfer of a confirmed contract to a given account of such a countervailing member, in accordance with a CMTA agreement.” An agreement between different brokers to allow and settle an investor`s trade with a single broker. As an investor may have relationships with several brokers, he or she can initiate transactions with different brokers, but at the time of billing, he or she can settle with a single broker. This a broker will present the clearing house trades to be settled. This agreement is between brokers and individual investors can exchange multiple brokers and choose a broker for resolution.