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. Often, investors or traders ask questions about the importance of a counterparty trade agreement (CMTA), the significant benefits of the agreement are listed below; www.nasdaq.com/investing/glossary/c/clearing-member-trade-agreement The terms of the typical clearing agreement allow an investor to explore investment options through a number of different brokers. The use of multiple brokers can occur due to several factors. A particular broker may have expertise with a particular sector of one market, while another broker may be considered more competent with options or shares related to another market. For an investor who wants to create a diversified equity portfolio, using the expertise of different brokers can be an effective strategy. For options transactions, CMTA must conduct transactions through the Options Clearing Company (OCC). The OCC supports the clearing process for different types of options traded on many exchanges.
The Securities and Exchange Commission (SEC) regulates the OCC. A Countervailing Member Trading Agreement (CMTA) is an agreement whereby an investor can enter into derivatives transactions with a limited number of different brokers, but can then consolidate those trades with a single clearing broker at the end of the trading day. CMTA is used exclusively for options, futures and other derivatives. 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. 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.
To comply with the terms of a clearing member agreement (CMTA), trades must be settled through the Option Clearing Corporation. The OCC is responsible for settling the clearing process for different types of option transactions on a number of exchanges. At the same time, the OCC also regulates the listing of new options in different markets. All CCO activities are carried out in accordance with the rules adopted by the Securities and Exchange Commission. On March 20, 2019, option Clearing Corporation (« OCC ») submitted to the Securities and Exchange Commission (« Commission ») the proposed amendment to SR-OCC-2019-003 (« Proposed Amendment ») pursuant to Section 19 (b) of the Securities Exchange Act of 19 34 (« Exchanges Act »)  and Rule 19b-4 , propose amendments to rule 401 of the CCO to require the inclusion of an « actionable identifier » (see below) in certain options for securities submitted to the CCO for processing.  The proposed amendment was published in the Federal Register on April 3, 2019 for public notice and the Commission did not receive notice of the proposed rule change.