Pay/Collect

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Pay/Collect

The exchange of money that occurs between futures traders after all transactions have been marked to market and netted by a clearing house. After the end of a trading day, the clearing house offsets trades against each other so the least possible amount of money actually needs to be transferred. This exchange is called pay/collect, or more properly, payment and collection.
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It also automates delivery payments that are managed through the current electronic pay-collect system so they are available in a timely and efficient manner.
Designed to meet global user demand, the new system will enable firms to substantially eliminate the manual process of delivering paper receipts and will allow delivery payments to be managed through the current electronic pay-collect system and be available sooner.