Out Trade

Definition

A trade that cannot be cleared by a clearing organization because the trade data submitted by the two clearing members or two traders involved in the trade differs in some respect (e.g., price and/or quantity).

In such cases, the two clearing members or traders involved must reconcile the discrepancy, if possible, and resubmit the trade for clearing.

If an agreement cannot be reached by the two clearing members or traders involved, the dispute would be settled by an appropriate exchange committee.

Related Terms

Other terms related to 'Out Trade' starting with the letter 'O'

OTC, Off Exchange, One Cancels the Other OCO Order, On Track or Track Country Station, Over the Counter OTC

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