Clearing corporations

Clearing corporations

Organizations that are affiliated with exchanges and are used to complete securities transactions by taking care of validation, delivery, and settlement.

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 ?
Customers of these clearing corporations have the option of upgrading their connections to these services via DTCC's SMART or SIAC's SFTI.
Since 1999, Don has played a major leadership role in helping us seamlessly integrate and streamline the various clearing corporations and depository functions under the DTCC organizational umbrella, without any disruption in service to our customers," said Considine.
and overseas, is a holding company for six subsidiary businesses -- a depository and five clearing corporations -- as well as the co-owner with Thomson Financial of a global joint venture called Omgeo.
We're well on our way with our RTTM platform since it will provide a real-time, standardized approach to fixed income across all the clearing corporations - with a common interactive messaging format for trade input, based on the SWIFT/ISO 15022 standards [an accepted standard for financial messaging worldwide], a single pipeline for expanded access to services offered by various clearing corporations using a single communications link, and a standardized application for matching transactions.
Lastly, DTCC completed multi-year initiatives in 2005 that previously required significant investment, including expenses for business continuity purposes such as the establishment of the Southern Business Center in Tampa and the insourcing of certain data processing functions for the clearing corporations," said Considine.
Thomas served as coordinator for Vision 2000, a major industry report outlining ways to create greater synergy and coordination among clearing corporations and depositories.
and overseas, is a holding company for four subsidiary businesses -- a depository and three clearing corporations -- as well as the co-owner with Thomson Financial of a global joint venture called Omgeo.
16 /PRNewswire/ -- The National Securities Clearing Corporations board of directors recently approved the appointment of William H.
DTCC is the holding company for six subsidiary businesses - a depository and five clearing corporations - as well as a global joint venture with Thomson Financial (called Omgeo).
Access to the Apogean ATS is restricted to those institutions that are members of the Emerging Markets Clearing Corporations (EMCC), and trading is available only on EMCC-eligible securities.
The Depository Trust & Clearing Corporation (DTCC) today announced the availability of a new DTCC operations certification program for its customers that meets industry needs for standardization of credentials among operations professionals.
com), the leading provider of visual intelligence software for the financial services industry, today announced a licensing agreement with National Securities Clearing Corporation (NSCC) and Depository Trust & Clearing Corporation (DTCC) for technology to monitor and analyze market risk.

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