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multilateral clearing organization

Defined in 1 dictionary — U.S. Code

United States Code

12 U.S.C. § 4421 — for purposes of this subchapter

The term “multilateral clearing organization” means a system utilized by more than two participants in which the bilateral credit exposures of participants arising from the transactions cleared are effectively eliminated and replaced by a system of guarantees, insurance, or mutualized risk of loss.