What does Clearing Member Trade Agreement (CMTA) mean?
An agreement between different brokers to allow and settle trade from an investor with only one broker. Since an investor can have dealing relationships with multiple brokers he or she can initiate trade with different brokers but at the time of settlement he or she can settle with only one broker. That one broker will present the trades to the clearing house for settlement. This agreement is between brokers and individual investors can choose multiple brokers to trade and one broker for settlement.
Futures Knowledge Explains Clearing Member Trade Agreement (CMTA)
Clearing Member Trade Agreement is a convenient process. You can deal with different brokers for trade but you can opt one single broker for clearing purposes. All positions can be cleared through a single brokerage/ clearing house.