What Role Does the Clearinghouse Play in the Settlement of a Cash-Settled Crypto Futures Contract?
The clearinghouse is central to the settlement process. It guarantees the performance of the contract to both the buyer and the seller.
On the final settlement date, it calculates the difference between the contract price and the reference rate, and then debits or credits the cash equivalent to the respective margin accounts of the long and short parties. It acts as the central counterparty to ensure the financial integrity of the transaction.
