A DERIVATIVE contract, traded through an authorized EXCHANGE and cleared through a CLEARINGHOUSE, that is characterized by standard terms and conditions, and is subject to standard MARGIN requirements and clearing rules. Trading in exchange derivatives may occur in physical OPEN OUTCRY form, or increasingly in electronic form. The three main classes of exchange traded derivatives are FUTURES, OPTIONS, and FUTURES OPTIONS. Contracts are available on a broad range of national and international ASSET references, including INTEREST RATES, FOREIGN EXCHANGE, EQUITIES, and commodities. Also known as LISTED DERIVATIVE. See also OVER THE COUNTER DERIVATIVE.

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