Exchange-traded derivatives are contracts, like futures and options, that are put into a standardised form and traded on exchange. To be contrasted with over-the-counter derivatives — like swaps — even though simple varieties of those are now also being cleared OTC to CCP, they are not traded on an exchange.
So tedious, in fact, that no-one has summoned up the fortitude to write it just yet. If you feel it would be worthwhile, do let us know.
Clearing and execution
The life-stage of a futures contracts boils down to two phases: execution and clearing. Execution is the process of buying or selling an ETD; for this an executing broker is paid a commission. clearing is the business of managing your contract during its life; handling margin requirements and that sort of thing. The main risk