Is Novation a Feature Unique to Futures, or Does It Apply to Other Derivatives?

Novation is a fundamental feature of all centrally cleared derivatives, including exchange-traded futures, options, and a growing number of standardized OTC derivatives like swaps. It is the mechanism by which the central counterparty model achieves its goal of mitigating counterparty risk across the derivatives market.

Any instrument cleared by a CCP utilizes novation.