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What Is ‘Open Offer’ and How Does It Relate to Novation in Some Markets?

A mechanism where the CCP stands ready to novate a trade post-execution, acting as a standing invitation to clear and promptly transfer bilateral risk.
Greeks.Live23.11.25

What Is ‘Open Offer’ and How Does It Relate to Novation in Some Markets?

An open offer is a mechanism used in some markets where the CCP stands ready to novate a trade at any point after execution, provided certain conditions are met. It acts as a standing invitation to clear, facilitating the prompt transfer of risk from the bilateral parties to the CCP.

How Does Novation Reduce the Overall Number of Counterparty Relationships in a Market?
What Is the Role of a Central Counterparty (CCP) in Exchange-Traded Derivatives?
What Is the Difference between a Bilateral Trade and a Cleared Trade in Derivatives?
Does Novation Apply to All Derivatives Cleared through a CCP?

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