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Quantitative Finance · Glossary

What is Clearing-firm credit control?

Definition 23.4 Networks, Hardware and Trading Infrastructure · Chapter 23 — Futures Connectivity

A clearing-firm credit control is a limit that a clearing member sets, at the exchange or in its own system, on the exposure of an executing firm it guarantees, with actions the exchange takes when the limit is breached, such as blocking new orders or cancelling working ones.

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