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When MFM executes trades on your behalf, your side of the trade is passed back to your clearers. You are not left with any counterparty risk or exposure to MFM, as the exchange’s clearing house sits centrally between all counterparties involved; hence the exchange’s clearing house is essentially the counterparty to both sides of the trade. As MFM is charged for unallocated trades by its clearer, it is in MFM’s interest to make sure that trades do not sit on its book. MFM ensures that all trades are taken up promptly by your clearer.
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