EnCiroCommunity

Questions Ask a question Daily Challenge Exam debriefs Rewards

Exam spaces

Join to ask, answer, and earn karma.

Get started Log in

EnCiroCommunity

Log in Get started

AI-powered exam preparation for CIRO proficiency exams. CIRE, ISE, and more — master the 2026 competency profile with confidence.

Exams

Free Readiness Check
CIRE Prep
RSE Prep
ISE Prep
Pricing
Tutorials
Blog

Legal

Terms of Service
Privacy Policy
FAQ

© 2026 EnCiro Inc. All rights reserved.

pritish@enciro.ca

CIRO Daily Challenge — August 10, 2026 | EnCiro | EnCiro

Daily Challenge/August 10, 2026

🔥 Daily ChallengeCIREDerivativesMedium

Which statement best describes a key feature of the legal framework established by the ISDA Master Agreement?

4 attempts · 25% correct

Each trade is treated as a separate and distinct legal contract to prevent cross-default.

Multiple payment obligations are offset into a single net payment to reduce credit risk.Correct

It provides a framework for exchange-listed derivatives to be traded on OTC markets.

Confirmations are only required for trades that are centrally cleared.

Why

Netting allows parties to offset multiple obligations into a single payment, which significantly reduces the credit risk between the two parties.

Share on LinkedIn

Discussion

Sign in to join the discussion.

No comments yet. Why is the answer what it is — or what tripped you up?

Get tomorrow's challenge in your inbox

One CIRO question a day. No account needed. Unsubscribe anytime.