clearing house


clearing house
An adjunct to a futures exchange through which transactions executed on its floor where trades are settled by a process of matching purchases and sales. A clearing organization is also charged with the proper conduct of delivery procedures and the adequate financing of the entire operation. Bloomberg Financial Dictionary
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An agency or separate corporation of a futures exchange that is responsible for settling trading accounts, collecting and maintaining margin monies, regulating delivery and reporting trade data ( i.e., CME Clearing is the clearing house for CME). Chicago Mercantile Exchange Glossary
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An exchange-associated, usually independent organisation through which all contracts are made, offset and delivered. Exchange Handbook Glossary
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The clearing house function assumed by Clearnet, Euronext subsidiary under RGV, France's automated clearing and settlement system.
This comes into play in all trades between Bourse member firms. By eliminating counterparty risk, it cuts short the chain reaction a fail would otherwise trigger and has reduced uncleared trades in Paris to virtually nil. NYSE Euronext Glossary

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clearing house clearing house house

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   A clearing house is the administrative centre of the market through which all transactions are cleared. In addition to administering trades, the clearing house guarantees the performance of contracts. It becomes the counter party to both the buyer and seller of a contract when a trade has been matched, thereby greatly reducing counter party risk. Other functions include making sure that underlying financial instruments or commodities are actually delivered to fulfil futures contracts, and maintaining the margin accounts.
   ► See also Margin.

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clearing house UK US noun [C] (also clearer)
FINANCE, STOCK MARKET an organization that other organizations use for managing payments relating to buying and selling investments: »

All members of an exchange are required to clear their trades through the clearing house at the end of each trading session.

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The International Commodities Clearing House is based in London.

(also clearing agent) BANKING an organization that is responsible for exchanging cheques between banks: »

Electronic payments include credit and debit cards, as well as automated clearing house payments.

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The New York Clearing House Association is the nation’s first and largest bank clearing house.


Financial and business terms. 2012.

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