In the futures market, the clearinghouse is least likely to: A) decide which contracts will trade B)set initial and maintenance margins C) act as the counterparty to every trade My answer was B, since Fed sets the initial and maintenance margins. Schweser answer is A (Study Session 17, Reading 69, Q9)
correct answer is A only, Bcoz, in future market it is the clearinghouse who sets the margin requirement. Fed sets the margin requirement in case of equities.
saminathan Correct is A. Clearing house does not decide which contracts get trade. It is the role of the futures exchange. Aldbest: > Fed sets the margin requirement in case of > equities. You surely mean Fed sets the margin requirement for the bank deposits the bank has outstanding (normally 10% of bank’s outstanding deposits)
Fed sets margin requirements for equities.
Thanks everyone! Good luck!