Clearing Corporation


Also found in: Dictionary, Thesaurus, Medical, Legal.
Related to Clearing Corporation: National Securities Clearing Corporation

Clearing Corporation

An agency or corporation on an exchange that settles transactions for a fee. Most exchanges have one or more clearing corporations that are charged with matching orders together, ensuring that delivery is made to the correct party, and collecting margin money. Because so many trades take place on an exchange in a given day, clearing corporations exist to process what each party owes or is owed in a central location so that the fewest securities and the least amount of money actually change hands. For example, suppose that a broker-dealer buys 1,000 shares of a security and then, in a completely separate transaction, sells 700 of the same shares. At the end of the trading day, the clearing house would determine that the broker-dealer must only buy 300 shares as the other 700 belong to another party. Clearing corporations receive a clearing fee in exchange for these services.
References in periodicals archive ?
The Clearing Corporation is owned by its clearing member shareholders and is the only independent derivatives clearing house in the world.
In 2003, he assumed the additional responsibility for all DTCC Risk Management activities, as well as being named CEO of DTCC's Fixed Income Clearing Corporation (FICC) subsidiary, which clears and settles U.
We have made a commitment to developing a market structure that reduces risk and increases transparency and capital efficiency in these important global markets, first through our acquisition of Creditex, and now through our planned acquisition of The Clearing Corporation.
Signatories to the letter of intent include The Clearing Corporation, Markit Group, Risk Metrics, and IntercontinentalExchange, Inc.
The Clearing Corporation is a private Delaware corporation, based in Chicago, which serves major dealers and participants in the worldwide marketplace for derivative products, many of who are stockholders.
These new propane and ethane contracts will be cleared through the company's partnership with The Clearing Corporation.
announced today that its wholly-owned subsidiary, NYFIX Clearing Corporation, has received approval from the Depository Trust and Clearing Corporation (DTCC) to operate as a clearing firm.
NEW YORK -- The Depository Trust & Clearing Corporation (DTCC) announced today a significant reduction in the fee for using Networking, one of its primary services used by the mutual fund industry.
3 /PRNewswire/ -- The Depository Trust & Clearing Corporation (DTCC) today announced that the interconnection between its Securely Managed and Reliable Technology ("SMART") network and the Secure Financial Transaction Infrastructure ("SFTI") offered by the Securities Industry Automation Corporation (SIAC) is now active, creating a new level of reliability for customer communications with the market infrastructure.
The warehouse is a centralised global infrastructure for the post-trade processing of over-the-counter (OTC) derivatives launched by The Depository Trust & Clearing Corporation (DTCC) in November 2006.
15 /PRNewswire/ -- The Depository Trust & Clearing Corporation (DTCC) said today that it expected that all its subsidiaries would be operating normally today to clear and settle trades from U.
April 30 /PRNewswire/ -- First Clearing Corporation announced today that it has signed a correspondent clearing agreement with Howe Barnes Investments, Inc.