- Settlement of Derivatives
-
Settlement of derivatives (futures and options) is made in principle between the members who are the parties of the contracts. However, for the purpose of securing the stability of settlement, the exchange intervenes between the two members as the settlement counterparty.
Also, the member who is the settlement counterparty against the exchange performs the settlement with the customer who placed an order for the derivatives transaction. In addition, a futures trading, because of its characteristic of long settlement period after entering into a contract, has its own specific settlement schemes which are not used in spot transactions.