I am not English native speaker, I am Italian.
I couldn't understand, I am confused.
What is the exact meaning of the following sentence in simple English?
"Later, a member of the exchange was not required to be a member of the clearinghouse if it could arrange for a clearinghouse member to assume responsibility for the nonmember’s obligations to the clearinghouse."
Which one is "to assume responsibility for obligations": a clearinghouse member or a member of the exchange?
Only in 1925 did the CBOT form the Board of Trade Clearing Corporation (BOTCC), a true CCP that became the counterparty to all transactions on the exchange. With the creation of BOTCC, members of the exchange were required to purchase shares in the clearinghouse, and only the member shareholders were permitted to use the facility. (Later, a member of the exchange was not required to be a member of the clearinghouse if it could arrange for a clearinghouse member to assume responsibility for the nonmember’s obligations to the clearinghouse.)
Members were also required to post their margin deposits with the clearinghouse. In the event of a member’s default, the clearinghouse would take responsibility for settling the defaulting member’s trades.