A futures contract (usually not exchange-traded) which has a clause allowing the holder to transfer his rights of assignment to a another party not initially involved in the contract. As such, the holder can assign his contractual rights and obligations to a third party who would be entitled whereby to receive all benefits and undertake the fulfillment of all obligations as stipulated in the contract before it expires or closes.
For instance, an investor holding a futures contract may want to assign it to a third party before it closes, especially in case the underlying has appreciated enough to make a profit on assignment.
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